Today's topic is the marketing
The marketing is very important functions in the businesses
Regardless is what types of business you are in
regardless is what stage you are in
Marketing plays a very important role in doing the businesses
so please pay attention to this topic today
What is the marketing?
Unfortunately, understanding the marketing is not easy
Because different people have a different idea about the marketing
The marketing is not clear concept
It is natural for you to be confused about the marketing
I want to make
you understand the concept of the marketing
very clearly in this session
Let's begin with
the relevant knowledge from kind of history
In Korea, we had a Korean War in 1950s
between North Korea and South Korea
And there are kind of on the ground, there are two different types of the battle
And the first types of battle would be a hill battle
In Korea, we have many mountains, so hill battle was very important
Our soldiers try to take over the land that
they're occupied by our enemies and back and forth
it was a very fierce battle
And another types of battle would be the bombing
We had aircraft and aircraft flew
and threw the bomb away on the ground
to make our enemy, shocked
This is the kind of purpose of the bombing
We can take this
this war as a great analogy for the business field
For example, hill battle is
very similar to the kind of sales
Think about it
Like our soldier, the two different people meet together
and shake hands and try to negotiate each other
and then make a contract directly
It is kind of we expect immediate outcome from the sales
On the other hand, bombing
purpose of the bombing is a little bit different from
the hill battle
Bombing is about making some kind of impression
Impression to our enemy
and allow them understand who we are something like that
And we want to prepare some kind of ground field
or we want to make our counterpart
get interest in our
kind of the weapon
or what we have something like that
This is kind of purpose of the bombing
From the business, it's about the marketing
before we go to the field directly,
we should prepare for our concept very clearly
We need to understand who is our consumers
or something like that
This is a kind of marketing and sales
Now, you understand the big difference
between sales and marketing
and more importantly, what is the marketing?
Let's look at the picture
Look at the picture on the left side
On the left, you see a one person, preparing the field
He was planting seed
and watering probably and nurturing the soils
This represents kind of marketing
Again, the marketing is all about preparing the ground
It includes kind of understanding your consumers
and delivering a compelling message and kind of building awareness
Building awareness is really important
Building awareness and creating long-term interest
in your product or service
This is kind of the marketing
It is all about you
to attract potential consumers and guide them toward something
toward the making a purchase
This is the kind of purpose of the marketing
Look at another picture
On the left side, you can see a person
you can see a person is picking, fruit from the trees
And it's kind of harvesting what you already grown
What is already grown
This is sales
Sales is the kind of process of
converting that interest into the action
Okay, closing the deal
and getting consumer to actually purchase and generating revenue
We expect to have immediate outcome
It's more direct and kind of often involving
It's a one-to-one interaction like a face-to-face interaction
Something like that
Simply, we can say marketing creates demand
On the other hand, the sales convert demand into the revenue
Now you understand?
Today's topic is what?
Today's topic is marketing
The purpose of the marketing is to create
demand of our product and services
Look at another picture
On your left side, you see a person using
it's LinkedIn
So, kind of researching potential consumers
and analyzing their interests
This is a kind of marketing side
This is marketing side
So, marketing today often involved in online
Using tools like social media
content marketing and kind of email campaign
What about it?
And the search ad, mainly
to attract and engage potential consumers
Again, the purpose of the marketing is to create demand
by building brand awareness
By generating leads and by nurturing interest
before your sales team actually talk to the consumers directly
This is marketing
On the other hand, on the right side, you see a salesperson, shaking hands
with his client, presenting a deal
This is a kind of a sales process
This is a kind of sales
Building personal relationship
Building personal relationship, answering the kind of questions
and kind of closing the deal
In this case of the sales, the creating, the building trust
Building trust each other
and persuading other people to purchase our product right now is very important
So, the goal of the sales is to convert
interest or lead into the paying consumers
paying consumers
To sum up
Marketing use kind of a tool like LinkedIn
to identify, attract, and qualify the lead
On the other hand, the sales use direct relationship
personal relationship and communication
to convert the lead into the actual revenue or actual sales
Now you understand the concept of the marketing very well
Let's move on
I summarized the differences between marketing and sales
How to define the marketing?
The marketing can be defined as
any activities that promote some kind of awareness
and interest in your product and services
On the other hand, the sales refers to a direct effort
to convert the prospect into the paying consumers
The marketing and sales have two different goals
The goal of the marketing, purpose of the marketing is to generate
the leads and build the brand awareness
Kind of generate a demand
demand itself
On the other hand, the sales the purpose of the sales is to close the deal
and meet make the interest into the paying consumer
and we expect to have direct outcome
immediate outcome
Now you understand that
What about the strategy of the marketing?
Strategy of the marketing involved in the marketing research
Research is very important to understand your consumers
Advertising is also very important strategy
to disseminate your information to the consumer
Why?
Because we want to generate the need, generate the demand
the demand from the consumers
And content creation
content creation is very important strategy for the marketing
Without content, then we cannot make our consumer interest
be interested in our product or services
Now you understand the difference between marketing and sales
I think you are ready to go into the marketing in more detail
Let's move on
Why marketing is important for the startup?
We are startup and we have just only two or three people
We don't have time, we don't have money
to involved in the marketing activities, marketing strategy
Why should we care?
We don't have time to prepare our product
We don't have time to do, we don't have time to develop our technology
We don't have time to meet our investors
Meeting investors, developing our technology
preparing commercial product is more important than marketing
Probably, you can argue like this
but your argument is sometimes right, but sometimes wrong
Because without brand awareness
without brand awareness from day one
you cannot sell your commercial goods
or commercial service to the consumers
Why?
Because when you start your businesses
when you release your new product or service in the market
you are nobody
You are nobody
Please face to the ugly truth
You are nobody
It means nobody knows who you are
Nobody knows what it is
You are not Steve Jobs
Your product is not Apple phone
Your product is just, I don't know, it's a kind of a new product
Never heard before
Never existed before
No matter how good your product is
if people don't know who you are
don't know what it is, then you will fail
because you cannot sell simply
Now you understand why marketing is important for you
Second reason why marketing is important
Because before you actually go to the market
you need to validate your product
and validate your product and market fit
The marketing activities, marketing strategy is kind of a really good process
to validate your market fit
Marketing is not just promotion
It's kind of a feedback loop
When you advertise your product and service
then you check out how many people are interested in your product and services
How many people, come to visit your website
to know more detail about your product and services
Based on this record, you understand
whether you achieve the product market fit or not
It is all about the marketing
Marketing is not just advertisement
Marketing is kind of receiving the feedback
receiving kind of the comment
from your potential consumers
And also, marketing can differentiate yourself from other competitors
Think about although you think
you are just a new startup, you are just only one company in your field
but in the reality, there are tons of companies already exist
You may be surprised how many people, how many companies
how many startups already jumped in your chosen market
People are very smart and they come up with very similar ideas like you
Your job is to differentiate yourself from other competitors
As a branding, storytelling, and contents
contents to make your service and businesses
or product is kind of different from other competitors
The last but not least reason
why marketing matters for the startup is
marketing can attract the early adopters investors
If early adopters satisfied with your product and service
they will spread out the news about yourself
about your product
It is about the word of mouth your investors
Your investors, of course, don't know who you are
Don't know who you are
before they reach out your product and service through somewhere else
for example, they can watch the YouTube video and
all of a sudden
they can be exposed to your content marketing through the YouTube
Or when investors goes to the Instagram
and then they can see your brand
Your brand
It's all happened
No one knows what happened
we need to prepare
The marketing
Marketing is really good activities
for you to prepare to attract your early adopters and investors
A strong marketing presence builds credibility
you can attract your investors, your early adopters
Now you understand why marketing is also important for the startups
Let's move on
Let's look at the paper
This is a really good research
so that you understand why, marketing is important for the startup
The researchers conducted
a large-scale field experiment in Uganda, Africa
Basically, they attract many startups in Uganda
and then they divided these startups into several groups
Each group paired with some of the consultants
And the consultants are the management consultant
and marketing consultant and kind of the other consultant
Anyway, this Group A matched with the management
the general management consultant
Group B matched with marketing consultant
Group C matched with kind of other types of consultants
Then they tried to find out any relationship
any effect of the consultant on the performance
They kind of tracked the record of kind of two years
It's a good research, anyway
They found out that
the startups matched with the marketing consultant
Marketing consultant increased their performance
There are strong relationships between
the marketing help and the performance
More specifically, sales increased by, 51%
around 52%
And the profit increased by kind of 35%
or 36%, which is huge
Look at this graph
The blue bar represents the sales increase
and performance increase
from the startup matched with the marketing consultant
You see the differences between others
Marketing is important for a startup
It was proved by the empirical study
Let's look at another study
This research also published into the great journals
and the researchers analyzed more than 3,000 high-tech startups
They found that if the startups have
CMO means the chief marketing officer
If the startups have kind of marketing experts
marketing experts on their top management team
they can achieve the VC funding
and the VC funding increased by 46%
Having CMO itself increased
VC funding opportunity by 46%
Why is this happening?
Because, VC perceived this startup with marketing experts kind of valuable
If the startup has CMO
and then VC perceived that they are prepared in the market
That's why we are able to generate more external funding
What do you think?
It's very, very important
It's very important and very helpful for the startup
please think about the marketing very carefully
The CMO effect, more important thing is
the CMO effect is stronger when the market is competitive
For example, if there are a lot of competitors out there
if you have a CMO
you can successfully differentiate yourself from your competitors
then later, your investors perceive that
you are kind of a more strong company, more strong company in the market
They perceive that
They perceive this way
That's why they try to invest more money into your company
What kind of data we need?
What kind of data is very important for the marketing research?
What about the market size?
The data relevant to the market size
It's a very important data
And what about the competitors?
So, who are the competitors in your market?
Competitor data
Consumers data, of course
Where the potential consumers purchase
And what about the advertisement data?
Current advertisement out there
What advertisement consumers are likely to see?
What they like?
Something like that their preference
And what about consumers' response to the different price ranges?
In order to understand the consumers' preference
toward kind of price ranges
You'd better conduct a simple experiment or simple survey
You just ask the several price options to your consumers
Then you get the answers and you analyze these types of data
How they, how consumers will respond to the different price ranges
That could be very important data
What product or what product or what service the consumers currently use
Those types of data is very important
from the marketing research, you systematically collect those types of data
and analyze and interpret the data in order to prepare
very well before you go to the market
And these types of collection of data
interpretation of data is very helpful for you to make a marketing decision
In the marketing research, there are basically
just two types of the marketing research
Please remember, just two types
The first type is primary marketing research, primary
And second type would be secondary marketing research
It's pretty easy to understand primary and secondary
Let's begin with the primary marketing research
What is that?
Primary marketing research is about new information
New information collected to solve your problem
Your current problem
Not other people's problems
Not yesterday's problems
For your problem for today or for the future
Now you understand that
This type of information is extremely current
Extremely current, of course
because you need this type of information
because of your interest for today or for tomorrow
It takes time and money and energy to collect these types of data
Why?
Because no one collected these types of data for you
In order to ask somebody else to collect data for you, then you should pay for it
That's why it takes time
If you do not want to pay for it
then you should collect these types of data by yourself
You make your own survey
and then you just go outside and you ask your potential consumers
and ask them to fill out the survey questions, something like that
Now, you understand that
Of course, there are marketing research companies
or there are freelancers or experts out there
Of course, you should pay for it
There are three different types of primary research methods
Three
Inside the primary marketing research, there are three different types of methods
The first method is survey
The second method is ethnography research
The third method is focus group interview
Let's look at the survey first
because the survey is the most commonly used method
in the primary marketing research
Survey is a data collection method using a questionnaire
A questionnaire in person or on the phone
or on the paper or these days on the internet
To me, I make many survey questions
and then I make a survey question online
then send out the email to the potential participant
This is a survey
I want to give you an example of a survey
how to apply this survey method into your marketing research
Again, your research is not for the scholarly paper
Your research is for your marketing decision
Do you remember the Wabi Parker?
Wabi Parker revolutionized the traditional eyeglasses market
They initiate the new business model
which is a home try-on business model
Basically, they put the five eyeglasses
into the one boxes and they send out the boxes to the consumers
And at home, just the consumers to open up them boxes
and they try on every, five eyeglasses
If they like all of them
they can keep all of them
If they like just some of them and they take some of them
they just simply return the rest of them
Then Wabi Parker received the returned eyeglasses
and take care of everything
This all process, Wabi Parker made this all process
and inspired all the businesses
So many businesses adopt this home try on business model
and lead to big success
Do you remember?
This types of story in the business model session?
Anyway, before they started Wabi Parker
they already conducted the research about
the current prices of the existing in eyeglasses in the market
They realized that eyeglasses in the market is very expensive
Some of them exceed $400
Think about eyeglasses, $400 and $500
which is very expensive at that time
They thought
if we provide very cheap eyeglasses
probably we can attract tons of the consumers
we can make money
This is a pretty simple business idea
Simple business idea
How to reduce the prices? We can sell eyeglasses online
that's why they initiate the home try on business model
The eyeglasses, try to sell
I'm sorry,
Wabi Parker tried to sell these eyeglasses
for just $95 each
But there are behind the story
how they decide the price as a $95 each
There are behind the story of $95 eyeglasses for the Wabi Parker
Wabi Parker's first business plan was to sell
prescription eyeglasses for about $50
Think about it
If when we finished the market research over the prices
for the existing eyeglasses on the market, we realized that
eyeglasses is very expensive more than $400
We can provide $50 eyeglasses
It's a great idea, $50
Let's decide $50 each eyeglasses
They decided the prices
without any relevant reasons
Why $50?
They don't have any reason
Anyway, so they want to validate their business plan
They come to visit the marketing professors
Marketing professor told them, ask them same questions
It's a good business plan, but why $50?
Why? Do you have any specific reason why $50?
Wabi Parker founder said that no reason just because it seemed too cheap
Then the marketing professor told them
Wow, basically you, you pick the random number $50number
You didn't check the consumer's preference
and consumer's willingness to pay or consumer's readiness, you didn't check anything
My advice is like this
Please send out the survey, survey to the potential consumers
and get the answer from them
and analyze their willingness to pay
Basically you conduct some kind of expense, some kind of small experiment
to understand the consumer's price ranges
So the Wabi Parker founders sent out the survey questions
asking the people, how likely they were to purchase eyeglasses
at a different, the price point
Will you purchase eyeglasses $50?
Yes. Will you purchase eyeglasses $60?
Yes. Why not? Will you purchase eyeglasses on $70?
Why not?
Although the price is increased
their willingness to purchase also increased
Why not?
Then at some point, consumer's willingness point is decreased
This point was $100
They found that when the prices reached $100
willingness to pay hit the top
But after the $100, consumer's willingness to pay is decreased
The $100 is kind of a maximum prices that we charge to the consumers
They realize that. Then why we keep $50?
Why we gave up additional $50?
It doesn't make sense
We charge $50, $100 instead of $50
$100, it looks expensive
why not, $95?
Yes, it seemed great
That's why they decided $95, each eyeglasses
It is all because of the marketing research, based on the survey
Let's look at the ethnographic researches
Ethnographic researches is a second types of primary marketing research
Ethnographic researches is to collect data
by not asking the opinion
By not asking the opinion, but by
observing consumer's behavior or seeing what consumers really do
Ethnographic research does not rely on consumer's opinion
because they don't believe the consumer's opinion
Opinion is just opinion
Consumers can say, everything
Will you purchase the eyeglasses?
Yes
Will you purchase eyeglasses at $200?
Yes, Why not?
Will you purchase eyeglasses $500?
Yes, Why not?
Consumers can say yes at any time, at anywhere
That's why ethnographic researchers say
Do not believe the consumer's opinion
Instead, they want to observe consumer's behavior directly
Ethnographic researches can be conducted by the researchers
who study animals because animals cannot speak
and we cannot communicate with animals, we cannot communicate with the chimpanzee
That's why the researchers who study chimpanzees or monkeys
or the other animals the ethnographic research
So basically, we adopted these types of the researches methods
into our marketing decision area
I want to give you an example of ethnographic research
Dr. Susan Scare was hired by General Mill in America
General Mill is a very big food company in America
Anyway, so General Mill asked Dr. Susan Scare to
kind of create a new type of meal, new types of food
for the family in America
This is what General Mill asked Dr. Susan Scare
And Dr. Susan Scare did not conduct a survey
Instead, she just directly called one of the just normal family in America
And interviewed them and started living with them
Then Susan Scare found that
breakfast is very important meal in the normal family in America
However, there is no time for preparing breakfast
And also kids don't want to eat breakfast
especially healthy breakfast with vegetables
They hate carrots, they hate broccoli
But moms in America really care for the healthy food
There's a huge conflict in the morning
Every morning there is a huge conflict inside the family
Dr. Susan Scare realized these issues
from direct observation
She suggested several ideas to General Mill
and General Mill came up with new types of breakfast
It is the behind the story of
very famous breakfast in America which is the Go-Gurt
General Mill successfully launched the new types of the breakfast which is Go-Gurt
Have you heard about the Go-Gurt?
In America, Go-Gurt is very popular
And my student, when I was a professor in America
my student ate Go-Gurt as their breakfast
And Go-Gurt is kind of a yogurt that are healthy while being tasty to the kids
And Go-Gurt has a very unique tube-type packaging
allow the kids to squeeze out the yogurt inside
and they just eat very well
This is the kind of Go-Gurt with this product
The mom can reduce the stress to prepare the breakfast
It is kind of healthy, it's kind of a win-win
It's all because of the ethnographic research
Let's move on to the last method of the primary marketing research
This is a focus group interview
Focus group interview is to collect the data from a very small group of person
But this small group of person is not just normal people
They are all experts
They are all stakeholders, very important stakeholders in the field
In certain kind of field
Understanding their opinion is very important
before we make a marketing decision, we'd better listen to their opinion, in advance
This is a focus group interview
Let's move on to second types of marketing research, which is a secondary research
Secondary research is about information already collected
for some other purpose, not your purpose
For example, government
Government collected the census data for their purpose
not for your purpose
And what about other industries
other industry association collected data for their own purpose, not for your purpose
There are several websites that you can check out some secondary data
I will give you some website and you can go there
For example, census data and business expense data
or what about travel statistics?
Probably U.S. government or U.S. travel association, conducted these types of research
and they collected the data about travel industry for the America
They published some kind of the result and statistics
and everybody can see what happened, very easily
But this is not for your purpose
This is for the government purpose or travel association purpose
but we can use these types of data
Why not?
If your business is related to the traveling, related to the travel industry
related to the hotel industry, then this data is very useful
You don't have to go outside
You don't have to collect the data by yourself
because the government or the other association already collected data for their purpose
Your job is just to use the data very well, that is your job
It is a benefit of secondary data
What about bicycle statistics?
I don't know who collected this data but some kind of bicycle association
or government or nonprofit organization
Collected these types of data for their purpose, not for your purpose
But think about if your business is related to the bicycle, then you can use the data
These types of data. Why not?
This is a secondary data
What about the online marketing statistics?
There are several, kind of rich data
about online marketing and online consumers' behaviors
You can use these types of data
Look at another picture
This is from census data
and this is just focused on huge store
Huge store data
Huge store with employee
How many huge store in America, something like that
Think about if your business is related to the kind of huge store
then this data is very helpful for you
and you understand how big the market is
It is very useful
What about this session?
This session we discussed about the difference between marketing and sales
We try to understand the concept of the marketing very well
and then we also talked about the marketing research
There are primary marketing research
and there are secondary marketing research