CMIE 1423 SET 3 SEMESTER 2 2021/2022

TOPIC:

COMPARATIVE ANALYSIS REPORT OF DIGITAL MARKETING

Hatta Wicaksono Naim

A177174
INTRODUCTION 3

DIGITAL MARKETING VS TRADITIONAL MARKETING 3

1) Traditional Marketing 3
2) Digital Marketing 3

Shopee 4
Implementation of promotional strategies in Shopee companies 6
Sales promotion 8

Zalora 8
Implementation of promotional strategies in Zalora companies 10

CONCLUSION 11
INTRODUCTION

Globalization is seen as the point from which all local aspects become global. This is also defined by
Held & McGrew (2001 in Heywood, 2011) as the world's interconnectedness which is increasingly
welded, intensive, and fast. The presence of globalization is also driven by technological developments
where these developments can affect any and all aspects of individual, community, and state life (Siagian,
1982). Globalization is also referred to as "the era of machine learning" because technological
innovations are emerging all the time. This can be seen from the computer aspect and the information
aspect, which every year innovates. Technological innovations also have an impact on access, where what
was initially hampered by distance and time is now transformed into easy and convenient access .
Globalization and technology cannot be separated from each other because technology is one of the
interrelated factors in globalization besides economics and politics.

Technology as a building factor for communication infrastructure is important in the global system of the
world economy (McGrew, 2008). The presence of technology makes everything more efficient,
productive, and creative. The same is true in the economic sector. Technological developments are
followed by economic developments, creating an era called the digital economy. This can be seen from
changes in economic activity due to technological advances which change the need for the physical
presence of buyers and sellers to become virtual presence only. The existence of a digital economy
facilitates the trading process which initially had a distance limit but now transaction activities can be
carried out easily and quickly. E-commerce is a form of economic digitization, this is explained by
Laudon & Laudon (1998) that e-commerce is a digital buying and selling process with consumers or
companies through electronic networks. The abolition of restrictions on the trade process is what makes
the development of the digital economy also included in the economic development of a country.

DIGITAL MARKETING VS TRADITIONAL MARKETING

1) Traditional Marketing
Traditional marketing or conventional marketing is the overall business activity designed to set prices,
promote, distribute products or services and is an idea that can satisfy consumer desires (Miller & Layton,
2000). In this traditional marketing, business actors use many tools and strategies to influence and get as
many customers as possible. The marketing tools commonly used by business people in traditional
marketing include brochures, pamphlets, advertisements, events, direct selling and personal selling.
(Fawaid, 2018). Marketing is all activities related to the delivery of products or services from producers
to customers (Shinta, 2011). Marketing has a very important role in the success of a business, marketing
is used for business actors as a means to influence customers in purchasing products with the aim of
developing and increasing the income and profits of a business (Fure, 2013).

2) Digital Marketing
Digital marketing is a business activity carried out by business actors to provide information about the
products or services offered and make buying and selling transactions by utilizing internet technology and
digital media (Mardiani & Imanuel, 2013). The existence of digital marketing is not intended as a
substitute for traditional marketing or conventional marketing that has existed for a long time, but is
intended so that business actors can combine traditional marketing and digital marketing simultaneously
in their marketing activities. In the current era, the focus of marketing activities has undergone many
changes due to technological developments (Camalia et al., 2018). The number of active internet users in
Indonesia can be an opportunity for business people to reach as many consumers as possible. Business
actors are expected to maximize their marketing activities by using digital media such as social media,
websites, and e-commerce to achieve their marketing goals.

With the internet, it has become the main tool for sending information, businesses of all sizes to increase
consumer awareness of goods and services. services by referring to the power of the internet to generate a
certain response from consumers (Kusniadji, 2018).Digital marketing or commonly known as digital
marketing aims to offer goods or services online to consumers (Hasan, 2019). At this time digital
marketing or digital marketing is one of the marketing that is considered effective and efficient, especially
for digital products such as software, videos, and music (Hariyanti & Wirapraja, 2018). Technology is a
factor that differentiates between the factors that exist in traditional marketing and digital marketing.
Technology is used to achieve success in digital marketing, technology makes it easier for business actors
to carry out marketing activities.

This pandemic condition encourages people to do online shopping transactions to minimize the spread of
the Covid-19 virus. Supported by increasingly rapid technological developments, especially in the field of
telecommunications equipment, namely Smartphones, with the rapid development of Smartphones in this
era, many applications have emerged that can simplify all daily activities, one of which is online shopping
applications which are very widely used by the community as a place to shop. make it easier to buy and
sell any product. As this technology develops, shopping does not have to come directly to the market or
conventional stores, it is enough to use a Smartphone and download online shopping applications that are
often found in the AppStore and AppleStore.

With the problems faced by all of humanity, this encourages more and more users (society) who seem to
have no other choice to make online shopping transactions but on the other hand it also encourages the
growth of actors (sellers) who sell their products online such as online shopping applications. Shopee and
Lazada which make the competition tougher. Many strategies can be done by business actors in the field
of online buying and selling services to overcome winning the competition. One of the strategies used to
overcome this competition is to use marketing strategies in accordance with existing trends, namely
online promotion and improving the quality of service to customers.

a. Shopee
Shopee is a marketplace that was just launched in 2015. Which offers a consumer-to-consumer / C2C
concept. which means that anyone can search, shop and sell. Shopee also offers a wide range of products,
equipped with secure payment methods, integrated delivery services and innovative social features to
make buying and selling safer and more practical. Shopee's monthly visits reach around 74,995,300. The
marketplace, which is under the SEA Group, is able to grab the attention of Indonesian consumers with its
creative campaigns involving international celebrities such as Blackpink. In the payment system, Shopee
Indonesia implements an interactive buying and selling service system between sellers and buyers
through the live chat feature. Shopee provides various payment systems via bank transfer, Indomaret,
Kredivo, to credit cards.

In addition, there is also an electronic wallet, Shopee Pay, which can store all funds, either from sales or
purchases. Shopee Indonesia also has the “Shopee Coin” feature, which is a virtual coin obtained from
purchasing goods with certain promos with a cashback system. Later, these "Shopee Coins" can be
exchanged for discounts when purchasing the next item. To ensure that the goods sent by Shopee sellers
reach the buyers, Shopee Indonesia applies the Shopee Guarantee system as a guarantee that the money
will be returned one hundred percent if the goods do not arrive. In addition, shopee Indonesia also has
logistical support that collaborates with several logistics services in Indonesia, such as JNE, J&T, GO-
JEK (Go-Send), and Pos Indonesia to assist the delivery of goods. If there is a notification that the
product stock will automatically decrease when the product stock is sold, it means that the customer can
immediately find out through the notification that the product stock is out of stock.

The existence of a complaint contact service is also very helpful if there is a complaint because you can
directly contact shopee customer service via email or telephone messages. Shopee provides a refund or
return of goods called a shopee guarantee, that is, if the goods that have been ordered and purchased do
not arrive or do not arrive at the address, the buyer can report to shopee to get a 100% refund from
shopee. With a refund can minimize the occurrence of fraud. The live chat feature makes it easier for
buyers and sellers to communicate. This feature allows users to shop and communicate at their
convenience. Designed to realize a social commerce platform, Shopee integrates social features including
a hashtag function, which allows users to easily search for trending goods/products or to follow the latest
trends.

In addition, Shopee also has other advantages in the form of sellers being able to send photos from
outside the product, in other words, being able to send photos directly from the cellphone gallery into the
Shopee application chat.

Strength:
● There is a Live Chat feature between sellers and buyers
● Easy to input images
● Social features include hashtag function
● Free shipping program (postage) with terms and conditions that apply
● There is no limit on the products to be sold
● Many categories provided
● There is a free shipping option
● Item specific description available

Weaknesses
● Sometimes uploading images often fails
● Searching for account funds that is calculated for a very long time
● For postage promotions, the conditions that must be met are sometimes a bit difficult
● Sometimes the site is difficult to access
● There is no shopping service with installments

Implementation of promotional strategies in Shopee companies

The strategy applied to Shopee uses several approaches that are tailored to the needs. The promotion mix
implemented by Shopee is as follows: - Advertising Advertising has a very important role in supporting
the success of the goods/services offered. Advertisements made by Shopee have a significant impact.
Because public advertisements in various circles will know more about the Shopee application.

Advertisements made by Shopee are:

a. Shopee company placed a creative advertisement in the form of a New Year Sale on the
advertisement on the billboard of Pondok Indah. They tricked the members of the BLACKPINK
personnel's body which were considered to be revealing their genitals with a touch of animation.

b. Shopee and one of the other e-commerce sites ranked at the top with the highest advertising
expenditures which included advertisements on television, billboards, brand ambassadors, and
sponsors. During the January to November 2019 period, Shopee ranked number 1 with a total
advertising expenditure of IDR 825.62 billion. This figure is fairly reasonable considering that the
events carried out by shopee are indeed quite large, such as Shopee 11.11 Big Sale, Shopee 12.12
Big Sale, and Shopee Liga 1 2019. The total shopee advertisements that aired on television for
the January - November 2019 period were 20,757 advertisements.
 c. Advertising through official Instagram, such as informing the event that will be carried out by
shopee and promo promos that are currently in effect on the Shopee application.

d. Brand Ambassador According to Fita and Setyorini (2016) brand ambassadors are cultural icons
or identities where they act as marketing tools that represent the achievement of
individualism,human fame, and the marketing of a product.

e. World-class top artists can be a means of promotion for a company, that's what Shopee uses by
making the BLACKPINK band as their brand ambassador so that shopee can be known more
widely by various groups of people. Besides BLACKPINK, Cristiano Ronaldo has also been a
brand ambassador from Shopee.

Sales promotion
In sales promotions, Shopee companies use promotional tools such as coupons, discounts, and matches to
quickly attract people's interest to use the Shopee application as an online shopping tool. The following
are sales promotions carried out by Shopee:

a. Free shipping coupons

By providing various vouchers such as free shipping for product purchases at Shopee, it will
certainly influence customers to use the Shopee platform as a more cost-effective shopping
application.
b. Discount coupons and cash back
By providing many attractive vouchers in addition to free shipping, Shopee also provides
discount vouchers and attractive cash back for buyers.
c. Giveaway
Procurement of giveaways is being intensively carried out by various groups, just like shopee, by
holding this giveaway event shopee will be seen by more people and invite interest to take part in
this giveaway so that shopee can be known by the wider community.

b. Zalora

Zalora is an online store that has participated in enlivening the E-Commerce market in Indonesia. Zalora
Indonesia is an online shopping website that provides clothing needs consisting of products from various
brands, both local and international. Zalora Indonesia was founded by Catherine Sutjahyo in 2012 who is
part of the Zalora Group in Asia consisting of Zalora Singapore, Malaysia, Vietnam, Taiwan, Thailand
and the Philippines. Zalora Mobile App which can be downloaded on Android-based Smartphones.
Zalora Android App allows users who love to shop to receive push notifications for every new item and
special promos so they will always get the latest fashion information. Through this application, users can
also easily access overall product information including images, product ratings and reviews.

Furthermore, the built-in capabilities of the Android OS make the animated appearance of the Zalora
Android App more attractive, one of which is when users add and store groceries into the shopping cart.
Various choices of payment methods also make online shopping activities easier for customers who
download this application. The sales system at Zalora is B2C (Business to Customer) where their
marketing targets are individuals. The sales system on Zalora wants to provide a different experience
from physical purchases. Zalora focuses on selling products such as clothing, shoes, bags, accessories,
sports, and even beauty products. Zalora offers products from various well-known local and international
brands. Zalora provides security for the payment process by making payment transactions via ATM
transfers, and if you still don't believe it or are afraid of being deceived, Zalora provides COD (Cash On
Delivery) direct payments when the goods have arrived.

Zalora guarantees the security of the data entered by the customer. Zalora ensures that the information
collected will be stored securely. Zalora also uses 128 – bit SSL (secure sockets layer) encryption
technology when processing your principal financial. 128-bit SSL encryption is estimated to take at least
a trillion years to break, and this is the industry standard. Zalora offers women's clothing, men's clothing,
shoes, accessories, sports equipment, Muslim clothing, and much more. This is what makes Zalora the
main destination for online fashion in Indonesia. In just a few years, Zalora has revolutionized the fashion
scene in Asia, starting from your shopping habits to creating your own personal style. With more than
30,000 products online and hundreds of new products every week, Zalora is ambitious and will continue
to grow. The good news is, Zalora gives you lots of options to stay stylish.

Zalora is a fashion provider that is balanced with the latest technology that will give you an unparalleled
online shopping experience.

Strength
● Free shipping specifically for the islands of Java and Bali
● 1 (One) month money back guarantee Terms and conditions apply
● COD for South and Central Jakarta area
● Provides a complete range of products
● Easy shopping process
● Satisfactory service
● Provides a variety of attractive offers
● The transaction process is guaranteed safe
● All products are guaranteed original brand

Weaknesses
● Kalimantan and Sumatra will be subject to postage if the purchase is below Rp. 200,000,-
● For the East Indonesia and Nusa Tenggara areas, a postage fee will be charged if the purchase is
below Rp. 300,000
● Payment confirmation takes a long time
● Facilities that are still not available in many cities
● Long delivery time

Implementation of promotional strategies in Zalora companies

a. Influencer Activation
There are 12 top influencers who are anchors of Zalora's campaign to generate awareness and great
influence by sharing their experiences with Zalora products in various categories.

b. Games & Giveaways

Zalora has the “Tebak-tebakan Brand” program, which is a daily game and giveaway with top influencers
via IG Live, and “Share & Win”, a giveaway program with millions of rupiah in prizes organized by
various Zalora brands.

c. Tik-Tok Launch & Activation

The tik-tok programs held to engage with customers are: Tiktok Challenge, Shopping Haul, Tiktok
Influencer Content, Tips & Trick, and Giveaway.

d. Community Influencer Program (CIP)

CIP is a Zalora program that features thousands of nano and micro influencers to become brand
ambassadors and Zalora by providing reviews and recommendations through their respective social
platforms. Some examples include “Zcrew”, a group of micro-macro influencers who are loyal to the
Zalora brand and products.
 e. ATL (Above The Line) Media
Zalora is also investing in offline and digital platforms to reach more customers. Examples are “Z Hang
out” and “Zneakers Talk”, regular Youtube content created to expand Zalora's audience. For out-of-home
media installed in public spaces in various big cities in Indonesia (Zalora Indonesia, Youtube Zalora,
Spotify Zalora, 2021).

CONCLUSION

There are many factors that determine the success of a marketing program, one of which is promotion.
Even though a company engaged in goods/services has good product quality, if the people who act as
potential consumers have never known or heard of it, they will never use it. For that we need the right
strategy so that the promotional activities carried out by the company can achieve the target.The
application of the promotion mix must always be developed in order to gain the trust of the wider
community and must be able to innovate in making promotions so that people are interested in using the
Shopee and Zalora applications. Shopee should be more careful and study more deeply before launching
advertisements such as posters or using billboards and adapting to the existing culture in Indonesia.

Shopee and Zalora's marketing communication strategy is to use a push and pull strategy. The push
strategy used is a promotional strategy that uses a marketing communication mix and uses programs such
as advertisements and campaigns. This is so that potential users know and are encouraged to use the
application. Pull strategy to get potential users to come to the brand. The marketing communication mix
used is in the form of sales promotion. Shopee is here for the first time with various promos, one of which
is free shipping. This makes potential users interested in using Shopee. To communicate the developed
strategy to potential users, Shopee and Zalora use a marketing communication mix in the form of
advertising, direct approach, personal approach and sales promotion. Ads with simple, dense and
repetitive characters make consumers aware of these two companies. Sales promotions in the form of free
shipping promos are also one of the reasons consumers are interested in using e-commerce.
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