EXPLORING GEO-MARKETING AS NEW BUSINESS MARKETING TOOL Case Study, Concepts, and Debatable Ideas Kenny Ong CNI Holdings Be...
Intro: CNI <ul><li>21 years old </li></ul><ul><li>Core Business: MLM </li></ul><ul><li>Others: Contract Manufacturing, F&B...
Agenda <ul><li>Strategic Segmentation Marketing </li></ul><ul><li>Geo-Marketing </li></ul>
Strategic Segmentation Marketing: Today
Marketing today… <ul><li>13 th  April 2009 </li></ul><ul><li>Two Domino’s employees </li></ul><ul><li>YouTube </li></ul><u...
What is Geo-Marketing?: Coors <ul><li>70’s: problem of commercial distribution in US  </li></ul><ul><li>Build brewery and ...
What is Geo-Marketing?: GfK <ul><li>How many households are located within a 60-minute radius of the furniture store? </li...
Types of Geo-Marketing <ul><li>Macro  </li></ul><ul><li>Micro  </li></ul><ul><li>Find You </li></ul><ul><li>Find Them </li...
The  real  goal of Marketing and Branding Understanding our role in the whole scheme of things www.myCNI.com.my www.OOBEY....
What is the purpose of Marketing & Branding? Ultimate Objective of Marketing:  “ Get more people, to buy more things, more...
What is the purpose of Marketing & Branding? “ Retention and Loyalty are useless if No Conversion is happening.” “ Communi...
What is the Objective? <ul><li>Comm = Relationship (something like Dating) </li></ul><ul><li>Comm ≠ Media glitz  </li></ul...
Business Model and Strategic Marketing The biggest impact www.myCNI.com.my www.OOBEY.com
 
The McPlaybook* <ul><li>Make it easy to eat </li></ul><ul><li>50% drive-thru </li></ul><ul><li>Meals held in one hand </li...
What is the Business Model? USP Market  Discipline Profit Model <ul><li>Google </li></ul><ul><li>Tata Nano </li></ul>
What is the Business Model? USP Market  Discipline Profit Model
Business Model: Profit Model Revenue Cost Margin Cash  Flow Assets
Market Discipline <ul><li>&quot;Exactly what I need&quot; </li></ul><ul><li>Customized products </li></ul><ul><li>Personal...
Market Disciplines Operational Excellence (low cost producer) Ref:  The Discipline of Market Leaders , Michael Treacy & Fr...
Market Disciplines Operational Excellence (low cost producer) Ref:  The Discipline of Market Leaders , Michael Treacy & Fr...
Market Disciplines Operational Excellence (low cost producer) Ref:  The Discipline of Market Leaders , Michael Treacy & Fr...
<ul><li>Product Leadership </li></ul><ul><li>New, state of the art products or services </li></ul><ul><li>Risk takers </li...
Alignment & Consistency Operational Excellence (low cost producer) Ref:  The Discipline of Market Leaders , Michael Treacy...
Alignment & Consistency Operational Excellence (low cost producer) Ref:  The Discipline of Market Leaders , Michael Treacy...
Alignment & Consistency: Business Model USP Market  Discipline Profit Model
Introduction to Geo-Marketing Why and How www.myCNI.com.my www.OOBEY.com
Marketing & Growth Strategy “ Double-Digit Growth”, Michael Treacy <ul><li>Base Retention </li></ul><ul><li>Share Gain </l...
Marketing & Growth Strategy “ Double-Digit Growth”, Michael Treacy <ul><li>Increase switching cost </li></ul><ul><li>Custo...
How Markets determine Growth Strategies (1) <ul><li>Growth Rate </li></ul>www.myCNI.com.my www.OOBEY.com   Growth Rate Str...
<ul><li>Churn Rate </li></ul>How Markets determine Growth Strategies (2) www.myCNI.com.my www.OOBEY.com   Churn Rate Strat...
Uses of Geo-Marketing <ul><li>‘ Location’ can play a role in all critical areas of business: </li></ul><ul><li>marketing <...
Geo-Marketing: What? <ul><li>screen new potential locations </li></ul><ul><li>define an optimal long term expansion strate...
Types of Geo-Marketing <ul><li>Macro  </li></ul><ul><li>Micro  </li></ul><ul><li>Find You </li></ul><ul><li>Find Them </li...
Types of Geo-Marketing <ul><li>Macro  </li></ul><ul><li>Micro  </li></ul><ul><li>Find You </li></ul><ul><li>Find Them </li...
Business Strategy vs. Consumer
Post Recession Trends and Implications Industry Convergence/ Extinction Social Networking Green & CSR Non-Profit/NGO incre...
Geo-related Trends Back-sourcing Bottom-up Innovation/Disruptions Nationalism and Protectionism Currency Wars Mobile Devic...
Most Popular Question <ul><li>“ When will we return to the last time?” </li></ul>   Wrong Question
Marketing Today
Extreme Emerging Countries <ul><li>Pakistan </li></ul><ul><li>Ghana </li></ul><ul><li>Egypt </li></ul><ul><li>Bahrain </li...
Macro: The New World Order <ul><li>Newsweek , September 26, 2010 </li></ul>
Macro: The New World Order <ul><li>Newsweek , September 26, 2010 </li></ul><ul><li>history  </li></ul><ul><li>race  </li><...
Macro: The New World Order <ul><li>Generous Welfare systems </li></ul><ul><li>6 of the top 8 on Legatum Prosperity Index  ...
Macro: The New World Order <ul><li>Poverty rates are almost twice as high, labor participation is 10 to 20 percent lower (...
Macro: The New World Order <ul><li>Rich in minerals, fresh water, rubber, and a variety of foodstuffs  </li></ul><ul><li>S...
Macro: The New World Order <ul><li>Newsweek , September 26, 2010 </li></ul><ul><li>The Border Areas </li></ul><ul><li>City...
Side Note: Disruptive Innovation Performance Time *The Innovator’s Solution, Clayton M. Christensen Performance that custo...
Side Note: Disruptive Innovation <ul><li>begin in unattractive or overlooked markets </li></ul><ul><li>high-quality, affor...
Side Note: Disruptive Innovation <ul><li>Examples of Disruptive Innovation in serving the “Under-served” markets: </li></u...
Side Note: Disruptive Innovation Ability to Diagnose and Treat *Will Disruptive Innovations Transform Healthcare, 19 Augus...
Geo-Marketing: Mc Donald’s Menu <ul><li>Product Variation: </li></ul><ul><ul><li>80% Global, 20% Local </li></ul></ul><ul>...
Geo-Marketing: Mc Donald’s Design
Geo-Marketing: Mc Donald’s Design <ul><li>$2.4 billion to redo at least 400 domestic outposts, refurbish 1,600 restaurants...
Types of Geo-Marketing <ul><li>Macro  </li></ul><ul><li>Micro  </li></ul><ul><li>Find You </li></ul><ul><li>Find Them </li...
Geo-Marketing – How? USP (How do I position my organization?) Trends Internal Competitor Customer
Geo-Marketing: Where? <ul><li>Where do my customers live, and where do they buy? </li></ul><ul><li>Where are my competitor...
How? – Consumer Behavior <ul><li>Some characteristics of consumer behavior are closely related to the: </li></ul><ul><li>p...
How? – TRENDS & External Impacts <ul><li>External impacts of consumer behavior are: </li></ul><ul><li>environment </li></u...
How? – Competition <ul><li>Study similar companies and saturation that eventually end up eliminated each other.  </li></ul...
Technology and Geo-Marketing Why it’s possible www.myCNI.com.my www.OOBEY.com
Which Company? <ul><li>American Customer Satisfaction Index (ACSI)  </li></ul><ul><li>64 out of100-point scale: lower than...
Which Company? <ul><li>American Customer Satisfaction Index (ACSI)  </li></ul><ul><li>64 out of100-point scale: lower than...
Popularly Unpopular <ul><li>Popularity  </li></ul><ul><li>≠ </li></ul><ul><li>Affection </li></ul>
Geo-Marketing Apps: Enterprise <ul><li>MapInfo  </li></ul><ul><li>ArcGIS (ESRI)  </li></ul><ul><li>RegioGraph (GfK)  </li>...
Geo-Marketing Apps: Public  <ul><li>Google Map </li></ul><ul><li>Google Earth </li></ul><ul><li>Google Business Listings <...
Types of Geo-Marketing <ul><li>Macro  </li></ul><ul><li>Micro  </li></ul><ul><li>Find You </li></ul><ul><li>Find Them </li...
Find You… Technology Self Targeting Location + Incentive + Call to Action =
Location-based Social Media
Case Study: Placecast & Geo-Fencing <ul><li>Geo-fencing — the act of drawing an invisible boundary around a given location...
Case Study: O2, Starbucks, L’Oreal  <ul><li>Six-month trial  </li></ul><ul><li>Placecast’s geo-fencing technology  </li></...
Case Study: McDonald’s, Facebook <ul><li>Starting June 2010 </li></ul><ul><li>Check in while featuring one of the products...
Case Study: Google, iPhone, Android <ul><li>Location-aware mobile display ads  </li></ul><ul><li>Incorporate maps for clic...
Case Study: Mobile, Google <ul><li>Mobile Coupons And Google Local Business Listings  </li></ul>
Case Study: Google Map, Listings <ul><li>Google Local Business Listings  </li></ul>
Case Study: Foursquare <ul><li>Ensure your business is listed </li></ul><ul><li>Let your customers know you are on Foursqu...
Case Study: JoseGoes.com <ul><li>Displays special offers including discounts, coupons and events </li></ul><ul><li>Join “T...
Types of Geo-Marketing <ul><li>Macro  </li></ul><ul><li>Micro  </li></ul><ul><li>Find You </li></ul><ul><li>Find Them </li...
Find Them… Technology Target Location + Incentive + Call to Action = Statistics Database +
Case Study: JangoMail, Google Maps <ul><li>Determine the location of recipient activity on Opens, Clicks and Web Page Hits...
Case Study: Mobius <ul><li>Point-Of-Sale Planner (POS Planner) </li></ul><ul><li>GIS, cartography and reporting </li></ul>...
Case Study: GfK <ul><li>GfK GeoMarketing, January, 2009 - Purchasing Power USA </li></ul>
Case Study: GfK <ul><li>How many households are located within a 60-minute radius of the furniture store? </li></ul><ul><l...
Case Study: Real Estate, GIS, CRM <ul><li>Take customer list over the past three or four years, and upload into the GIS an...
Case Study: SimpleGeo, SpotRank <ul><li>Uses real-time location data from all GPS-aware devices to map out location trends...
End Notes  www.myCNI.com.my www.OOBEY.com
Alignment & Consistency: Business Model USP Market  Discipline Profit Model
<ul><li>“… in the past 18 months, we have heard that profit is more important than revenue, quality is more important that...
What is the purpose of Marketing & Branding? Ultimate Objective of Marketing:  “ Get more people, to buy more things, more...
Thank You.  soft copy of slides:   http://totallyunrelatedrandomanddebatable.blogspot.com/
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Exploring geo-marketing as new business marketing tool

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Marcus Evans "Market Intelligence & Consumer Insights" Conference
Singapore, November 2010


Exploring geo-marketing as new business marketing tool
• Conducting a territorial analysis of potential market opportunities via the components of geo-marketing strategies
• Designing marketing activities using GIS (geographic information systems) and data with a geographical context
• Analysing the socioeconomic reality with the assistance of cartography, computering and statistics gathered
• Using geo-marketing as an instrument to optimise future business decision, advertising campaigns, new stores localisation and customer loyalty

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  • COMM = Internal Comm (Sales Marketing) + External Comm (PR Marketing)
  • So… the definition for effective COMM for Marketing applies to PR as well! What about CSR? That’s another topic for another time. CNI’s business itself is CSR, in BDP (Entrepreneur Development), Products (Health, Quality, Affordability), and Yayasan (less fortunate) What about Share Price (i.e. Investor Relations)? Secondary. Primary goal of Public Listing was to generate ‘WOM’ excitement for F/L, generate public credibility for Sponsoring.
  • If this is not a achieved, PR/Corp Comm has failed its job. Fair? Not fair? Who cares?
  • Example of successful customer loyalty strategy focusing on Operational Excellence and Product Leadership while maintaining market standard on Customer Service without indulging in it
  • Example: Google USP – Search, Free! Profit Model – Ad revenue MKt Discipline – Operational Excellence Example: Air Asia USP – Budget Profit Model – Lowest Cost, Maximum Seats Mkt Discipline – Operational Excellence
  • Example: Google USP – Search, Free! Profit Model – Ad revenue MKt Discipline – Operational Excellence Example: Air Asia USP – Budget Profit Model – Lowest Cost, Maximum Seats Mkt Discipline – Operational Excellence
  • How does the Customer define “Great Experience”? - It depends on their own perceptions. Problem is…this differs depending on the Customer! If you are very good in something that the Customer does not value, it will not improve the Experience.
  • To Excel – Must be a Leader in ONE of the disciplines but the other two must be at least at industry standard
  • OPTION 1
  • Exercise: Customer Analysis and Market Discipline Determining your Market Discipline
  • Refer to Handout 1: Value Disciplines
  • To Excel – Must be a Leader in ONE of the disciplines but the other two must be at least at industry standard
  • Example: Google USP – Search, Free! Profit Model – Ad revenue MKt Discipline – Operational Excellence Example: Air Asia USP – Budget Profit Model – Lowest Cost, Maximum Seats Mkt Discipline – Operational Excellence
  • Example: Google USP – Search, Free! Profit Model – Ad revenue MKt Discipline – Operational Excellence Example: Air Asia USP – Budget Profit Model – Lowest Cost, Maximum Seats Mkt Discipline – Operational Excellence
  • COMM = Internal Comm (Sales Marketing) + External Comm (PR Marketing)
  • Exploring geo-marketing as new business marketing tool

    1. 1. EXPLORING GEO-MARKETING AS NEW BUSINESS MARKETING TOOL Case Study, Concepts, and Debatable Ideas Kenny Ong CNI Holdings Berhad www.myCNI.com.my www.OOBEY.com
    2. 2. Intro: CNI <ul><li>21 years old </li></ul><ul><li>Core Business: MLM </li></ul><ul><li>Others: Contract Manufacturing, F&B Retail, Export/Trading, eCommerce, Shared Services </li></ul><ul><li>Malaysia, Singapore, Brunei, Indonesia, India, China, Hong Kong, Philippines, Italy, Taiwan, Oman, United States, Vietnam </li></ul><ul><li>Staff force: ± 500 </li></ul><ul><li>Distributors: 150,000 </li></ul><ul><li>Products: Consumer Goods and Services </li></ul>
    3. 3. Agenda <ul><li>Strategic Segmentation Marketing </li></ul><ul><li>Geo-Marketing </li></ul>
    4. 4. Strategic Segmentation Marketing: Today
    5. 5. Marketing today… <ul><li>13 th April 2009 </li></ul><ul><li>Two Domino’s employees </li></ul><ul><li>YouTube </li></ul><ul><li>Apology from Domino’s after 48 hours </li></ul><ul><li>1 million hits </li></ul><ul><li>Twitter: questions on silence </li></ul><ul><li>LinkedIn: suggestions by users in forum </li></ul>BusinessWeek, May 4, 2009
    6. 6. What is Geo-Marketing?: Coors <ul><li>70’s: problem of commercial distribution in US </li></ul><ul><li>Build brewery and a bottling plant in strategic states, so the beer would last longer without spoiling and obtained a saving in the cost of shipping. </li></ul>
    7. 7. What is Geo-Marketing?: GfK <ul><li>How many households are located within a 60-minute radius of the furniture store? </li></ul><ul><li>Create driving time zones </li></ul><ul><li>Calculate and display population figures, household numbers </li></ul>
    8. 8. Types of Geo-Marketing <ul><li>Macro </li></ul><ul><li>Micro </li></ul><ul><li>Find You </li></ul><ul><li>Find Them </li></ul>
    9. 9. The real goal of Marketing and Branding Understanding our role in the whole scheme of things www.myCNI.com.my www.OOBEY.com
    10. 10. What is the purpose of Marketing & Branding? Ultimate Objective of Marketing: “ Get more people, to buy more things, more frequently, at higher prices.” Sergio Zyman “ Retention and Loyalty are useless if No Conversion is happening.” www.myCNI.com.my www.OOBEY.com
    11. 11. What is the purpose of Marketing & Branding? “ Retention and Loyalty are useless if No Conversion is happening.” “ Communication is useless if No Conversion is happening.” www.myCNI.com.my www.OOBEY.com
    12. 12. What is the Objective? <ul><li>Comm = Relationship (something like Dating) </li></ul><ul><li>Comm ≠ Media glitz </li></ul><ul><li>Comm ≠ ATL/BTL/BwTL/ArTL/FTL </li></ul><ul><li>Comm ≠ CSR </li></ul><ul><li>Comm = Get more people, to buy more, more frequently, at higher prices </li></ul>www.myCNI.com.my www.OOBEY.com
    13. 13. Business Model and Strategic Marketing The biggest impact www.myCNI.com.my www.OOBEY.com
    14. 15. The McPlaybook* <ul><li>Make it easy to eat </li></ul><ul><li>50% drive-thru </li></ul><ul><li>Meals held in one hand </li></ul><ul><li>Make it easy to prepare </li></ul><ul><li>High Turnover </li></ul><ul><li>Tasks simple to learn & repeat </li></ul><ul><li>Make it quick </li></ul><ul><li>“ Fast Food” </li></ul><ul><li>Tests new products for Cooking Times </li></ul><ul><li>Make what customers want </li></ul><ul><li>Prowls market for new products </li></ul><ul><li>Monitored field tests </li></ul>*Adapted from: Businessweek , Februrary 5 th 2007 www.myCNI.com.my www.OOBEY.com
    15. 16. What is the Business Model? USP Market Discipline Profit Model <ul><li>Google </li></ul><ul><li>Tata Nano </li></ul>
    16. 17. What is the Business Model? USP Market Discipline Profit Model
    17. 18. Business Model: Profit Model Revenue Cost Margin Cash Flow Assets
    18. 19. Market Discipline <ul><li>&quot;Exactly what I need&quot; </li></ul><ul><li>Customized products </li></ul><ul><li>Personalized communications </li></ul><ul><li>&quot;They're very responsive&quot; </li></ul><ul><li>Preferential service and flexibility </li></ul><ul><li>Recommends what I need </li></ul><ul><li>&quot;I'm very loyal to them&quot; </li></ul><ul><li>Helps us to be a success </li></ul>&quot;They are the most innovative&quot; &quot;Constantly renewing and creative&quot; &quot;Always on the leading edge&quot; &quot;A great deal!&quot; Excellent/attractive price Minimal acquisition cost and hassle Lowest overall cost of ownership &quot;A no-hassles firm&quot; Convenience and speed Reliable product and service Product Leadership Operational Excellence Customer Intimacy www.myCNI.com.my www.OOBEY.com
    19. 20. Market Disciplines Operational Excellence (low cost producer) Ref: The Discipline of Market Leaders , Michael Treacy & Fred Wiersema; 1995 Product Leadership (best product) Customer Intimacy (best total solution) www.myCNI.com.my www.OOBEY.com
    20. 21. Market Disciplines Operational Excellence (low cost producer) Ref: The Discipline of Market Leaders , Michael Treacy & Fred Wiersema; 1995 Product Leadership (best product) Customer Intimacy (best total solution)
    21. 22. Market Disciplines Operational Excellence (low cost producer) Ref: The Discipline of Market Leaders , Michael Treacy & Fred Wiersema; 1995 Product Leadership (best product) Customer Intimacy (best total solution)
    22. 23. <ul><li>Product Leadership </li></ul><ul><li>New, state of the art products or services </li></ul><ul><li>Risk takers </li></ul><ul><li>Meet volatile customer needs </li></ul><ul><li>Fast concept-to- counter </li></ul><ul><li>Never satisfied - obsolete own and competitors' products </li></ul><ul><li>Learning organization </li></ul>Market Discipline: Disciplines, Priorities, and KPIs <ul><li>Operational Excellence </li></ul><ul><li>Competitive price </li></ul><ul><li>Error free, reliable </li></ul><ul><li>Fast (on demand) </li></ul><ul><li>Simple </li></ul><ul><li>Responsive </li></ul><ul><li>Consistent information for all </li></ul><ul><li>Transactional </li></ul><ul><li>'Once and Done' </li></ul><ul><li>Customer Intimacy </li></ul><ul><li>Management by Fact </li></ul><ul><li>Easy to do business with </li></ul><ul><li>Have it your way (customization) </li></ul><ul><li>Market segments of one </li></ul><ul><li>Proactive, flexible </li></ul><ul><li>Relationship and consultative selling </li></ul><ul><li>Cross selling </li></ul>www.myCNI.com.my www.OOBEY.com
    23. 24. Alignment & Consistency Operational Excellence (low cost producer) Ref: The Discipline of Market Leaders , Michael Treacy & Fred Wiersema; 1995 Product Leadership (best product) Customer Intimacy (best total solution)
    24. 25. Alignment & Consistency Operational Excellence (low cost producer) Ref: The Discipline of Market Leaders , Michael Treacy & Fred Wiersema; 1995 Product Leadership (best product) Customer Intimacy (best total solution) HP well-balanced portfolio, mass customization Acer super lean cost structure, aggressive pricing Apple powerful products, premium pricing, limited range Still Doing well in 2009/2010
    25. 26. Alignment & Consistency: Business Model USP Market Discipline Profit Model
    26. 27. Introduction to Geo-Marketing Why and How www.myCNI.com.my www.OOBEY.com
    27. 28. Marketing & Growth Strategy “ Double-Digit Growth”, Michael Treacy <ul><li>Base Retention </li></ul><ul><li>Share Gain </li></ul><ul><li>Positioning </li></ul><ul><li>Adjacent Market </li></ul><ul><li>New Business </li></ul>GROWTH
    28. 29. Marketing & Growth Strategy “ Double-Digit Growth”, Michael Treacy <ul><li>Increase switching cost </li></ul><ul><li>Customize products </li></ul><ul><li>Preempt Defections </li></ul><ul><li>Brand </li></ul><ul><li>Neutralize Competitor advantages </li></ul><ul><li>Superior Value </li></ul><ul><li>Buy market share </li></ul><ul><li>Spot growth opportunities </li></ul><ul><li>Organized search </li></ul><ul><li>Promising Market? </li></ul><ul><li>Make or Buy? </li></ul><ul><li>Base Retention </li></ul><ul><li>Share Gain </li></ul><ul><li>Positioning </li></ul><ul><li>Adjacent Market </li></ul><ul><li>New Business </li></ul>GROWTH
    29. 30. How Markets determine Growth Strategies (1) <ul><li>Growth Rate </li></ul>www.myCNI.com.my www.OOBEY.com Growth Rate Strategy Why? Fast <ul><li>Market Positioning </li></ul><ul><li>Share Gain </li></ul><ul><li>Base Retention </li></ul><ul><li>Maintain market share in strategic segments </li></ul><ul><li>Prepare for market decline </li></ul><ul><li>Competitors focus too much on getting new customers </li></ul>Flat <ul><li>Base Retention </li></ul><ul><li>Share Gain (Acquisitions) </li></ul><ul><li>Lose customers slower than competitors </li></ul><ul><li>Create scale economics, squeeze costs </li></ul>
    30. 31. <ul><li>Churn Rate </li></ul>How Markets determine Growth Strategies (2) www.myCNI.com.my www.OOBEY.com Churn Rate Strategy Why? Low <ul><li>Share Gain (Acquisitions) </li></ul><ul><li>Adjacent Markets </li></ul><ul><li>Buying customer base is cheaper than own efforts </li></ul><ul><li>New products, old customers strategy </li></ul>High <ul><li>Base Retention </li></ul><ul><li>Share Gain </li></ul><ul><li>Adjacent Market </li></ul><ul><li>Lose customers slower than competitors </li></ul><ul><li>Customers are always open to the best value and offer </li></ul><ul><li>Desperate to gain revenue </li></ul>
    31. 32. Uses of Geo-Marketing <ul><li>‘ Location’ can play a role in all critical areas of business: </li></ul><ul><li>marketing </li></ul><ul><li>distribution </li></ul><ul><li>logistics </li></ul><ul><li>sales </li></ul><ul><li>finance </li></ul><ul><li>customer care </li></ul><ul><li>product development (R&D) </li></ul>
    32. 33. Geo-Marketing: What? <ul><li>screen new potential locations </li></ul><ul><li>define an optimal long term expansion strategy </li></ul><ul><li>detect opportunities to launch marketing campaigns </li></ul><ul><li>set well-founded sales targets for all current outlets. </li></ul>
    33. 34. Types of Geo-Marketing <ul><li>Macro </li></ul><ul><li>Micro </li></ul><ul><li>Find You </li></ul><ul><li>Find Them </li></ul>
    34. 35. Types of Geo-Marketing <ul><li>Macro </li></ul><ul><li>Micro </li></ul><ul><li>Find You </li></ul><ul><li>Find Them </li></ul>
    35. 36. Business Strategy vs. Consumer
    36. 37. Post Recession Trends and Implications Industry Convergence/ Extinction Social Networking Green & CSR Non-Profit/NGO increase Increased Regulations What do these mean to us?
    37. 38. Geo-related Trends Back-sourcing Bottom-up Innovation/Disruptions Nationalism and Protectionism Currency Wars Mobile Devices Power re-balancing Mergers, Acquisitions & Divestment Extreme Emerging Countries Lower Middle Class rule BRIC and PIIGS
    38. 39. Most Popular Question <ul><li>“ When will we return to the last time?” </li></ul> Wrong Question
    39. 40. Marketing Today
    40. 41. Extreme Emerging Countries <ul><li>Pakistan </li></ul><ul><li>Ghana </li></ul><ul><li>Egypt </li></ul><ul><li>Bahrain </li></ul><ul><li>Lebanon </li></ul><ul><li>Kenya </li></ul><ul><li>Peru </li></ul><ul><li>Angola </li></ul><ul><li>Bangladesh </li></ul><ul><li>Philippines </li></ul><ul><li>Cypress </li></ul>Businessweek , October 2010 <ul><li>Micro-economic Reforms </li></ul><ul><li>Consumer Growth </li></ul><ul><li>Expanding Middle Class </li></ul><ul><li>Lower Middle Class </li></ul>
    41. 42. Macro: The New World Order <ul><li>Newsweek , September 26, 2010 </li></ul>
    42. 43. Macro: The New World Order <ul><li>Newsweek , September 26, 2010 </li></ul><ul><li>history </li></ul><ul><li>race </li></ul><ul><li>ethnicity </li></ul><ul><li>religion </li></ul><ul><li>culture </li></ul>
    43. 44. Macro: The New World Order <ul><li>Generous Welfare systems </li></ul><ul><li>6 of the top 8 on Legatum Prosperity Index </li></ul><ul><li>some of the world’s highest savings rates (25 % or more), </li></ul><ul><li>impressive levels of employment, education, and technological innovation. </li></ul>The New Hansa Denmark, Finland, Germany, Netherlands, Norway, Sweden Newsweek , September 26, 2010
    44. 45. Macro: The New World Order <ul><li>Poverty rates are almost twice as high, labor participation is 10 to 20 percent lower (vs. Hansa) </li></ul><ul><li>Huge government debt </li></ul><ul><li>Lowest birthrates </li></ul><ul><li>Some of the world’s oldest population </li></ul>The Olive Republics Bulgaria, Croatia, Greece, Italy, Kosovo, Macedonia, Montenegro, Portugal, Slovenia, Spain Newsweek , September 26, 2010
    45. 46. Macro: The New World Order <ul><li>Rich in minerals, fresh water, rubber, and a variety of foodstuffs </li></ul><ul><li>Suffer varying degrees of political instability. </li></ul><ul><li>Trying to industrialize and diversify economies. </li></ul><ul><li>Household incomes remain relatively low, </li></ul><ul><li>Potential high-growth region. </li></ul>The Rubber Belt Cambodia, Indonesia, Laos, Malaysia, Philippines, Thailand, Vietnam Newsweek , September 26, 2010
    46. 47. Macro: The New World Order <ul><li>Newsweek , September 26, 2010 </li></ul><ul><li>The Border Areas </li></ul><ul><li>City-States: </li></ul><ul><ul><li>London, Paris, Singapore, Tel Aviv </li></ul></ul><ul><li>North American Alliance </li></ul><ul><li>Liberalistas </li></ul><ul><li>Bolivarian Republics </li></ul><ul><li>Iranistan </li></ul><ul><li>The New Ottomans </li></ul><ul><li>Maghrebian Belt </li></ul><ul><li>Middle Kingdom </li></ul><ul><li>Stand-Alones: </li></ul><ul><ul><li>Brazil, France, Greater India, Japan, South Korea, Switzerland </li></ul></ul><ul><li>Russian Empire </li></ul><ul><li>The Wild East </li></ul><ul><li>Greater Arabia </li></ul><ul><li>South African Empire </li></ul><ul><li>Sub-Saharan Africa </li></ul><ul><li>Lucky Countries </li></ul>
    47. 48. Side Note: Disruptive Innovation Performance Time *The Innovator’s Solution, Clayton M. Christensen Performance that customers can absorb or utilize Performance of present technology driven by sustaining technological improvements New Performance trajectory
    48. 49. Side Note: Disruptive Innovation <ul><li>begin in unattractive or overlooked markets </li></ul><ul><li>high-quality, affordable alternatives </li></ul><ul><li>more convenient </li></ul><ul><li>less centralized locations </li></ul><ul><li>increasingly lower prices </li></ul><ul><li>for less complicated cases </li></ul><ul><li>less specialized training to deliver </li></ul><ul><li>Also known as ‘Downwards Innovation’ </li></ul>*The Innovator’s Solution, Clayton M. Christensen
    49. 50. Side Note: Disruptive Innovation <ul><li>Examples of Disruptive Innovation in serving the “Under-served” markets: </li></ul><ul><li>Angioplasty </li></ul><ul><li>LASIK </li></ul><ul><li>Home Pregnancy Kit </li></ul><ul><li>MinuteClinic - diagnoses < 20 conditions </li></ul><ul><li>Sonosite – portable ultrasound machine </li></ul><ul><li>Quantum Dot – self diagnosis of complicated conditions such as prostate cancer </li></ul>*The Innovator’s Solution, Clayton M. Christensen
    50. 51. Side Note: Disruptive Innovation Ability to Diagnose and Treat *Will Disruptive Innovations Transform Healthcare, 19 August 2001, John W. Kenagy, MD General Hospital Inpatient Specialty Hospital Inpatient MD Outpatient Non MD Outpatient Alternative Care
    51. 52. Geo-Marketing: Mc Donald’s Menu <ul><li>Product Variation: </li></ul><ul><ul><li>80% Global, 20% Local </li></ul></ul><ul><ul><li>home-style meals (Boston Market)  </li></ul></ul><ul><ul><li>burritos (Chipotle)  </li></ul></ul><ul><ul><li>coffee (McCafé)  </li></ul></ul><ul><ul><li>DVD rentals (Redbox)  </li></ul></ul><ul><ul><li>Premium menu items (snack wraps, sweet tea Frappes)  </li></ul></ul>
    52. 53. Geo-Marketing: Mc Donald’s Design
    53. 54. Geo-Marketing: Mc Donald’s Design <ul><li>$2.4 billion to redo at least 400 domestic outposts, refurbish 1,600 restaurants abroad, and build another 1,000 </li></ul><ul><li>Corporate design leader for each operating regions; that person contracts with a regional designer who can figure out what other local design elements might make a space feel individual and authentic </li></ul><ul><li>Solicits ideas from leading design firms such as Ideo, Rockwell Strategic, and boutique firms around the globe. </li></ul>
    54. 55. Types of Geo-Marketing <ul><li>Macro </li></ul><ul><li>Micro </li></ul><ul><li>Find You </li></ul><ul><li>Find Them </li></ul>
    55. 56. Geo-Marketing – How? USP (How do I position my organization?) Trends Internal Competitor Customer
    56. 57. Geo-Marketing: Where? <ul><li>Where do my customers live, and where do they buy? </li></ul><ul><li>Where are my competitors? </li></ul><ul><li>Where are my marketing efforts invested? </li></ul><ul><li>Where are my opportunities? i.e. Where should I put my next Point of Sale? </li></ul><ul><li>Where are my sales representatives? </li></ul><ul><li>To what advertising medium do my customers respond? Billboards? Mobile coupons? Where were they when exposed to my campaign? </li></ul><ul><li>Are products sold better in particular zones? Where and why? </li></ul>
    57. 58. How? – Consumer Behavior <ul><li>Some characteristics of consumer behavior are closely related to the: </li></ul><ul><li>place where they live, </li></ul><ul><li>climate, </li></ul><ul><li>location and culture </li></ul>
    58. 59. How? – TRENDS & External Impacts <ul><li>External impacts of consumer behavior are: </li></ul><ul><li>environment </li></ul><ul><li>socio economic </li></ul><ul><li>trade balance </li></ul><ul><li>energy </li></ul><ul><li>telecommunications </li></ul><ul><li>languages </li></ul><ul><li>religions </li></ul><ul><li>transportation </li></ul>
    59. 60. How? – Competition <ul><li>Study similar companies and saturation that eventually end up eliminated each other. </li></ul><ul><li>Identify growth options where before there were normal distribution strategies, </li></ul><ul><li>Avoid errors leading to lost money and time. </li></ul>
    60. 61. Technology and Geo-Marketing Why it’s possible www.myCNI.com.my www.OOBEY.com
    61. 62. Which Company? <ul><li>American Customer Satisfaction Index (ACSI) </li></ul><ul><li>64 out of100-point scale: lower than IRS (Tax) </li></ul><ul><li>2 nd last among 30 companies surveyed </li></ul><ul><li>Lowest 5% among 223 companies surveyed </li></ul><ul><li>Bottom 5% of all measured private sector companies </li></ul><ul><li>500 million customers </li></ul>2010 American Customer Satisfaction Index (ACSI)  E-Business Report
    62. 63. Which Company? <ul><li>American Customer Satisfaction Index (ACSI) </li></ul><ul><li>64 out of100-point scale: lower than IRS (Tax) </li></ul><ul><li>2 nd last among 30 companies surveyed </li></ul><ul><li>Lowest 5% among 223 companies surveyed </li></ul><ul><li>Bottom 5% of all measured private sector companies </li></ul><ul><li>500 million customers </li></ul>2010 American Customer Satisfaction Index (ACSI)  E-Business Report
    63. 64. Popularly Unpopular <ul><li>Popularity </li></ul><ul><li>≠ </li></ul><ul><li>Affection </li></ul>
    64. 65. Geo-Marketing Apps: Enterprise <ul><li>MapInfo </li></ul><ul><li>ArcGIS (ESRI) </li></ul><ul><li>RegioGraph (GfK) </li></ul><ul><li>Mapwindow </li></ul><ul><li>JangoMail </li></ul><ul><li>DIVA </li></ul><ul><li>GRASS (Linux, Windows) </li></ul><ul><li>MÖBIUS </li></ul><ul><li>SimpleGeo </li></ul>
    65. 66. Geo-Marketing Apps: Public <ul><li>Google Map </li></ul><ul><li>Google Earth </li></ul><ul><li>Google Business Listings </li></ul><ul><li>Google Analytics </li></ul><ul><li>Facebook </li></ul><ul><li>Twitter </li></ul><ul><li>iPhone </li></ul><ul><li>Android </li></ul><ul><li>Foursquare </li></ul><ul><li>Yahoo </li></ul>
    66. 67. Types of Geo-Marketing <ul><li>Macro </li></ul><ul><li>Micro </li></ul><ul><li>Find You </li></ul><ul><li>Find Them </li></ul>
    67. 68. Find You… Technology Self Targeting Location + Incentive + Call to Action =
    68. 69. Location-based Social Media
    69. 70. Case Study: Placecast & Geo-Fencing <ul><li>Geo-fencing — the act of drawing an invisible boundary around a given location and serving an opt-in SMS message when users enter boundary </li></ul>
    70. 71. Case Study: O2, Starbucks, L’Oreal <ul><li>Six-month trial </li></ul><ul><li>Placecast’s geo-fencing technology </li></ul><ul><li>1,500 areas offering deals. </li></ul><ul><li>Opt-in </li></ul><ul><li>Gender, age and general interests. </li></ul><ul><li>Receive Special deals </li></ul>
    71. 72. Case Study: McDonald’s, Facebook <ul><li>Starting June 2010 </li></ul><ul><li>Check in while featuring one of the products, such as a Big Mac, in their activity feed </li></ul><ul><li>Geo-couponing </li></ul>
    72. 73. Case Study: Google, iPhone, Android <ul><li>Location-aware mobile display ads </li></ul><ul><li>Incorporate maps for click-to-call </li></ul><ul><li>Ad-unit: expands into a full ad that includes a map overlay with the business pinned on a Google Map </li></ul><ul><li>Calls-to-action: “get directions” and “click-to-call.” </li></ul>
    73. 74. Case Study: Mobile, Google <ul><li>Mobile Coupons And Google Local Business Listings </li></ul>
    74. 75. Case Study: Google Map, Listings <ul><li>Google Local Business Listings </li></ul>
    75. 76. Case Study: Foursquare <ul><li>Ensure your business is listed </li></ul><ul><li>Let your customers know you are on Foursquare </li></ul><ul><li>Use the ‘Foursquare specials’ feature (Competitor) </li></ul><ul><li>Give discounts </li></ul><ul><li>Foursquare analytics </li></ul>
    76. 77. Case Study: JoseGoes.com <ul><li>Displays special offers including discounts, coupons and events </li></ul><ul><li>Join “The Club” to receive special offers via email </li></ul><ul><li>Search by city or by restaurant name </li></ul><ul><li>Consumers self-select by location </li></ul>
    77. 78. Types of Geo-Marketing <ul><li>Macro </li></ul><ul><li>Micro </li></ul><ul><li>Find You </li></ul><ul><li>Find Them </li></ul>
    78. 79. Find Them… Technology Target Location + Incentive + Call to Action = Statistics Database +
    79. 80. Case Study: JangoMail, Google Maps <ul><li>Determine the location of recipient activity on Opens, Clicks and Web Page Hits </li></ul><ul><li>Segment a recipient list by location or by a specific distance from a particular zip code </li></ul><ul><li>Send Personalized and localized email message. </li></ul>
    80. 81. Case Study: Mobius <ul><li>Point-Of-Sale Planner (POS Planner) </li></ul><ul><li>GIS, cartography and reporting </li></ul><ul><li>Customer behaviour model </li></ul><ul><li>Sector specific, outlet- and environment-related indicators </li></ul>
    81. 82. Case Study: GfK <ul><li>GfK GeoMarketing, January, 2009 - Purchasing Power USA </li></ul>
    82. 83. Case Study: GfK <ul><li>How many households are located within a 60-minute radius of the furniture store? </li></ul><ul><li>Create driving time zones </li></ul><ul><li>Calculate and display population figures, household numbers </li></ul>
    83. 84. Case Study: Real Estate, GIS, CRM <ul><li>Take customer list over the past three or four years, and upload into the GIS and map to specific neighborhoods </li></ul><ul><li>New discovery and update look and feel of ad to appeal more </li></ul><ul><li>Customized ‘neighborhood’, then overlay on underlying data </li></ul>
    84. 85. Case Study: SimpleGeo, SpotRank <ul><li>Uses real-time location data from all GPS-aware devices to map out location trends for “Spots </li></ul><ul><li>E.g: highlights location request frequency at 2pm on a Saturday in San Francisco </li></ul>
    85. 86. End Notes www.myCNI.com.my www.OOBEY.com
    86. 87. Alignment & Consistency: Business Model USP Market Discipline Profit Model
    87. 88. <ul><li>“… in the past 18 months, we have heard that profit is more important than revenue, quality is more important that profit, people are more important than profit, customers are more important than our people, big customers are more important than small customers, and that growth is the key to our success. No wonder our performance is inconsistent&quot; </li></ul>CEO, Anonymous
    88. 89. What is the purpose of Marketing & Branding? Ultimate Objective of Marketing: “ Get more people, to buy more things, more frequently, at higher prices.” Sergio Zyman www.myCNI.com.my www.OOBEY.com
    89. 90. Thank You. soft copy of slides: http://totallyunrelatedrandomanddebatable.blogspot.com/

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