MKTG8012 - Marketing Management in Digital - Assessing Marketing Environment

Diskusi:

For this session, please discuss the followings:

1. Elaborate what factors need to be considered in assessing the consumer (B2C) market
and business (B2B) market.
2. Use an existing consumer brand to illustrate your explanation of a consumer’s touch
points in relation with his/her decision journey regarding that brand.
3. Referring the case of PT TINAMITRA MANDIRI, discuss your recommendation of
business growth to answer the questions of the problems in the Case.

Jawaban:

Dear Ibu Artha and my beloved friends,

1. Factors need to be considered in assessing the consumer (B2C) market and business
(B2B) market.

After providing a comparative study between B2B and B2C, S. K. Saha et al. (2014) provide
their difference based on several characteristics (see Table 1).
The characteristics above summarized by Chris Wells as follows:
1. Who is being sold to
There are far fewer customers to sell to in B2B, and the gap between highest spending and
lowest spending customers tends to be much higher in B2B markets. Decision-making units for
B2B are larger and more volatile. Decision-makers are harder to engage and locate.
2. What is being sold, and where?
Spend on products tends to be higher. Products are more customized and complex. And they
are more likely to be sold through multiple distribution channels
3. How is the purchase made
The buying journey is longer as it has more stages and stakeholders. Buyers require more
information throughout the buying process. B2B purchases are (slightly) less emotionally driven.
Projective techniques can be used in qualitative studies to identify underlying emotions

2. Example of a brand consumer’s touch points in relation with his/her decision journey:
NIKE

Mckinsey explain the decision-making process is a circular journey with four phases: 1) initial
consideration; 2) active evaluation, or theprocess of researching potential purchases; 3) closure,
when consumers buy brands; and 4) postpurchase, when consumers experience them.

Each process above has different touch points. Let's begin with the explanation on how NIKE
using their touch points in each process of consumer decision journey.
1. Initial Consideration: Brand Advertising

Via the way they make contact with their audience – their brand touch points (assisted by their
huge advertising budget!). When it comes to brand touchpoints, Nike has grand-slammed all
areas in order to successfully hit the ground running with their customers.
Nike’s ads truly harmonise with the brand’s slogan, “Just Do It”, exploring how powerful and
colourful their products make a person. Their ads stimulate their audience to act by appealing to
the audience’s want to look and feel sexy. When you see a Nike ad, you know within the first
second that it’s them. They’ve completely nailed it when it comes to creating their identity and
letting it be recognized without even saying a word.

2. Active Evaluation: Empower Customer Interaction and Build Engaged Story (word of mouth)

They associate with the Big Guys in the field: names such as Michael Jordan, Tiger Woods and
Cristiano Ronaldo. It’s not just their fans that have/ then made contact with Nike, it’s the
multitudes that have been in contact with the fans. Associating with such big names, as it were,
is a well-known branding strategy that has proven time and time again to be successful in
creating positive interactions with customers.
But just as their slogan said “Just Do It”, NIKE tried to broaden their market and making the
prospective customer think that to do sport you don’t even have to be a sports fanatic! Just Do
It! They have managed to motivate an audience with such wide degrees of difference to achieve
their personal best, and these kind of audience spread their story that motivate others to begin
sport also. This is what we called word of mouth marketing.

3. Closure: In-Store experience from NIKE expert and NIKE app

When customer go to a NIKE store, customer will be happy to see a wide choice of products for
multi purposes. They have NIKE Experts that can help customer with fit, style, and product
recommendations, and can provide additional guidance based on customer specific needs.

And now, NIKE is even going further.

NIKE is winning the race to create the store of the future by debuting many new features into
the NIKE app instead of stacking the physical space with expensive technology. The NIKE app
can now let customer unlock free stuff in stores, help you try on shoes without having to talk to
anybody, and even allow customer to instantly purchase something in-store and walk right out
with it.
4. Post Purchase: NIKE loyalty program

NIKE membership not only connects customer to exclusive shoes and gear, events, athlete
stories, and running and training programs to help customer reach their potential—all
through Nike Member Rewards. Membership is free, and customer will have Rewards available
to them the minute they sign up.

3. Recommendation for Tina Mitra Mandiri:

Since the business they were doing (Compressed Natural Gas) is already taken by
Government, in this case PGN, to still carry their mission, they can do these alternatively:
a. Coordinate to the government to provide other business: such as providing education to the
market, provide consultation since they are first on the market, etc
b. Develop new products, for example: electric city

Source:
1. Wells, Chris (2020). What is the Difference Between B2B & B2C Market Research?
|https://www.hello-adience.com/blog/insights/what-is-the-difference-between-b2b-and-b2c-
market-research/
2. Saha, S. K., Hossain, M. Sh., Islam, A., Rodela, R. S. (2014). A Comparative Study on B2B
Vs. B2C Based on Asia Pacific Region // International Journal of Scientific & Technology
Research. Vol. 3, Issue 9, pp. 294–298.
3. David Court, Dave Elzinga , Susan Mulder, and Ole Jørgen Vetvik (2019). The Consumer
Decision Journey. https://www.mckinsey.com/business-functions/marketing-and-sales/our-
insights/the-consumer-decision-journey
4. www.nike.com

Thank you,
Windharti Amelia