Professional Documents
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INNOVATE MARKETING
BEYOND
DIGITAL SOLUTIONS
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Table of Contents
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Table of Contents 7
Background 9
Preface 11
What is the Internet Business 101? How Do Giants Become Giants Using the
Internet? 30
Background
His uncle is amused of his nephew’s effort and he advised Ivan not to give
up. Instead of encouraging him to catch the wild animals, his uncle gave him
seeds. He told Ivan to grow these great seeds first. However, Ivan does not
have an idea what kinds of seeds there are. There were many colors and
different variants. But he listened to his heart through his uncle’s advice.
Instead of chasing wild animals, he started farming first. He picked an ideal
location next to the river. He then planted the seeds in the soil and started to
see the seeds growing into grass, vegetables, and different kinds of flowers.
After some time, he went back to his uncle to talk. His uncle gave him
wise advice again to be patient and keep doing this until he is able to build a
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great garden. Ivan listened and continued to grow the seeds. Soon, the garden
started attracting the sheeps, horses, and goats. The trees that he grew were
also used to build the fence around the farm to keep animals in. He also built
the nest and put it next to the rivers to catch fish. He started growing schools
of fish too in this pool built within the nest. This is the story of Ivan, a
metaphorical representation of how digital marketing works in actual life.
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Preface
could be called marketing automation but has not come to true existence. The
today’s largest SMBs advertising tools from Google and Facebook require
their users master the skills of marketing and digital marketing in order to
compete in today’s market. From over thousands of small and medium
businesses, I learnt is that in between bridging the gap of business owners’
unique product and service offerings, as well as the marketing advertising
platforms, the brand and marketing management perspective and knowledge
is lacking. This could start from missing an appropriate brand name for the
business to not understanding to put an advertising message and make use of
the advertising tool from Google or Facebook.
is worth being created and started. Whatever the motivation and reason of
starting a business is, you must bring in a new and unique value to the market
in order to survive and compete. This is the underlying answer to the question
why out someone starts a business.
Assuming that you have a business that you are passionate about and will
bring in new value to the market, you have to ask yourself this question: is
your business markable?
1. You have a unique offer that brings new value to the market
2. You have a low-ticket offer
3. Your business is considered a repeat business
4. Your products and services are not price-sensitive
5. Your customers have an obvious need and demand
6. The consumption of the products and services will enable bringing
in customers
7. You are in a growing market
8. The product/service is in a high margin business
Marketability
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1 Unique offer
3 Repeat purchase
4 Non-price sensitive
5 Obvious demand
7 Growing market
8 High margin
Total score
Add the score together and you need a minimum 4 points. If you are below
4, you need to reassess your business offering and change your game plan.
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Low Ticket Offer – If you start with a high ticket offer, ensure that you
also come with a low ticket offer to enable closing the deal, gathering visitors,
and eventually acquiring interested parties to become your customers.
Repeat Purchase – Most customers can be turned into a repeating
consumer, and likewise, a business can be developed into a repeating one,
even when selling hardware. Let us understand the concept clearly. Let’s say
that the product is an vacuum cleaner. Most people would think that selling
vacuum cleaner is a non-repeating business.
However, if such hardware businesses appear to be one-time
businesses, then why are so many giant businesses in this one-time business
and continue to survive, considering that getting into a one-time business is
costly.
Below is the product life cycle of selling and marketing your product.
Let us assume that you have a unique and great product that can cover up to
100,000 of customers in this lifetime. When you sell your products through
retail channels, or directly with a regulated control of demand/supply, and
you have managed well in the product life cycle curve, you will end up
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turning the business income into a repeatable business over the course of the
product life cycle.
These four marketability items are pre-defined when you choose the
business/product/market to get in. It’s harder to twist.
● Non-price sensitive
● Obvious demand
● Growing market
● High margin
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In line with this, here’s a table where you can draw and enumerate existing
products/ services in relevance to products/ services that you intend to offer,
as well as relative solutions. You should also determine your suppliers and
competitors, and elaborate how your partner can support your product/
service in the market. Lastly, you should visualize how you will interact or
get support from different parties if you become a key player.
Who How
Competitors
Suppliers
Partners’ Support
Relative Solutions
Existing
Product/Services
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name?
Assuming that you have renovated your business, there is one more thing
to know before you start. The digital solution execution will not succeed in a
straight line. It is very similar to the development of a startup in two
principles. Firstly, you will undergo some ups and downs as you continue to
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experiment, learn, pivot, and scale. Secondly, you cannot rush your digital
solution execution; from point zero to your first successful milestone, it goes
through a sequential growth and not a big leap. In sum, it takes continuous
efforts and adjustments to achieve a successful digital marketing deployment.
Once you have done this, you are now ready to put your business in the
digital market.
I will illustrate how giants such as Google and Alibaba become the giants
that they are today. Google dominates the search engine in the world while
Alibaba dominates the ecommerce market in China and sourcing hub
worldwide. In the end, it is all about building your own control (monopolised)
business ecosystem. This is not something that you can copy but it serves as
a good reference to understand and to give it a shot if there is an opportunity.
Alibaba.com
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Thebeginning
Alibaba has a clear vision to help small businesses operate and sell online
conveniently. They endeavored to offer services that allow businesses to
engage with their clients more effectively.
● The market situation
The market is highly competitive. There were other sources globally, such
as DHgate, and traditional trade events competing with each other.
● A path to scale up the business
Ailbaba partners with Yahoo, thus an infrastructure was established with
lots of traffic in the USA. Yahoo becomes a great traffic sources for Alibaba
to eventually gain traction.
● Dominate position
Google
● The beginning
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This is the mindset that you have to possess to win in the market. This is
the path of how giants progressed and entered the monopolised market.
Moving forward, let us understand what technology on the internet is used to
monopolize and win. But first, one needs to understand the foundation of
internet business and real-time bidding advertising.
The internet is a business that entails building your own traffic source.
Your customers will then acquire value from you with or without cost. You
can also then employ extra traffic that is underutilised and as a result, those
parties will purchase and will resell to other companies that have digital value
to visitors. One ideal example is Youtube.
The platform that has the traffic to sell is called Suppy-Side Platform or
Sell-Side Platform (SSP). Moreover, the party that pays for the traffic is
called Demand-Side Platform (DSP). In between these two, there is the most
important party on the system called Data Management Platform (DMP).
These three platforms are the backbone of the internet business.
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Let us set Google as an example of SSP. You have tons of traffic and you
also own the DMP making you aware of each of your customers' needs,
profile, and what they intend to do next. When Google offers the advertising
space to the advertisers, the advertisers offer a glimpse of time called Real-
time bidding.
Now, think about who will want to pay for the traffic. If you know this
customer is about to buy your product, you will offer the most visible to your
potential customers. Hence, the advertisers who also possess in-depth
knowledge of the customer being possessed on the DMP will be the most
advantageous.
When you understand this logic, you will see how Alibaba becomes the
king of ecommerce in China; they own the SSP, DMP and they run the
ecommerce and payment to get their product advertisement ready when the
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customers are looking to buy something via search engine or video research.
Now, think about building this closed loop system on your business. This is
indeed achievable with the technological tools provided by Facebook,
Google and other marketing digital tools. This is exactly what you are about
to build like a giant internet player.
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When you market your business, there are 3 types of practices. I call them
farming, fishing with a casting net, and throwing a spear. The three practices
are used together at the end with the ultimate objective of getting results at
the most effective cost.
Farming – build content consumption pools or a pool of content
consumption websites. This will enable your consumers to continue
becoming your brand audience with the lowest cost.
Fishing with a casting net – make use of a one-time marketing campaign
to acquire the interest of customers to get to your farm at the lowest cost.
Throwing a spear – Make use of direct effort to acquire customers at
lowest cost.
In this chart, Caya, the CEO of Slidebean, explains the 19 channels that
business owners can maximize to reach out to their potential customers. To
begin with, Viral Marketing pertains to a referral system wherein one
consumer refers a trending product/service to another potential consumer.
Next is Public Relations or simply gaining exposure through press
publications and other news channels. There is also Unconventional PR,
Search Engine Marketing (e.g. Google, Youtube), Social & Display Ads
(Instagram, Twitter, Facebook), Offline Ads (e.g. billboards, magazine ads),
Search Engine Optimization or increasing the rank of your website on
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Cost) Ratio
You can scale your business as long as you have a positive profit limited
by your capacity and the marketing fatigue of the campaign that you run.
Note that your CAC would increase as your marketing campaign experiences
fatigue.
Once you have a farm that you acquired via the sales funnel and you have
your lead created by fishing net and spears, what you need to do now is to
farm your customers as habit training. Build a habit of treating them as to
how you are accustomed to. For example, every Monday, publish useful
media that you like to review. Provide the treat on a regular basis. Eventually,
your brand becomes a part of their daily lives. When the demand for high
ticket purchase comes up, your company will be the first name that they will
think of.
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Forum/Blog/FAQ
Facebook/Youtube
CRM
Podcast, KOL
Press
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References
https://www.youtube.com/watch?v=k2rpBhMY0ys
https://www.oxfordlearnersdictionaries.com/us/definition/english/innovate