Nama : Kurniawan

Nim : 2201102010061

Prodi : Manajemen

Mk : Manajemen Pemasaran (Paper)

Dosen : Dr.Sorayanti Utami, S.E., M.M

Community Marketing

Abstract

In community-based marketing, the new marketing framework presented in this study is as

follows: (i) in term of the creation of value, it views a product from the perspective of solving the
life issues of the customer base by including augmented products; and (ii) in terms of
communication and delivery of value, a company forms a community with customers who are
interested in and empathize with the value that the company creates and who can be constantly
connected through social media services, apps, and other digital means. There, interactions
among customers are born and new value is created. It is managed by proactively collaborating
with other companies toward creating innovative values. We believe that this framework
accurately describes the ongoing marketing activities of companies.

Keywords: service design, community design, empathy, customer relationships, business to

business relationships

Introduction

Marketing is the relationship between the creators of value (companies, etc.) and recipients of
value (markets), where the creators discover the target customers of their business activities,
learn about them, utilize their own internal as well as external resources, and successfully edit
them to create and offer products that have value for their customers. They accurately
communicate and deliver to the customers the value that was created so that the value is realized
and gives satisfaction to the customers. This series of activities, processes, and mechanisms is
defined as marketing (Kotler & Keller, 2007). In recent years, companies have been actively
developing distinctive products and services based on new ideas and methods in response to
diversifying consumer needs and intensifying intercompany competition. For example, when
looking at the concept of product stratification (Kotler, 1980), emphasis is often placed on the
differentiation not in terms of “core product” or “tangible product” but in terms of “augmented
product” (information on how to use and enjoy the product and services), which is considered to
be the outermost periphery. In addition to products with new service functions such as
Panasonic’s “Aeolia app” (which allows remote control by smartphone to monitor room air
status), product strategy that integrates products and services can be cited such as in Nestlé’s
“Nespresso” (a product in which value is realized by making coffee into a capsule and
combining it with machine appliances), “KitKat,” (which offers ways to improve the product’s
taste through modifications by the purchaser), Tesla’s “over the air (OTA)” feature for its
electric vehicles, and Panasonic’s “Bistro” microwave ovens (with product features that can be
updated post purchase). Pricing strategies are no longer on one-price-for-one-item basis, and
there is a marked trend toward diversification such as subscription systems.

In addition, in terms of the communication and delivery of value, digitalization is progressing

rapidly due to the increasing sophistication of information devices, such as the internet and
smartphones, and this is changing the way communication is conducted (Kuwashima, 2019).
First, the formation of customer communities is being prioritized over product promotion.
Examples include P&G’s “myrepi” (building websites for multiple customer segments and
lifestyle themes) and Kirin Brewery’s “Third Kitchen Project” (a community connecting
restaurant chefs and local food producers). The second development is the convergence of value
transmission and delivery through the use of the internet. The volume of purchases made via the
internet, which used to be more of a communication channel, is increasing, while real stores are
now functioning more as communication channels that offer interaction and experience between
the company and its customers, rather than as sales channels. Thus, even though the basic
marketing concepts of creating, communicating, and delivering value have not changed, there are
many new phenomena that are difficult to explain with conventional methods, such as how
products are perceived and how customers should be approached; therefore, a new marketing
framework is required. This study aims to examine, conceive, and present a new marketing
framework that accurately and clearly explains the actual marketing activities of companies,
including these new events. To this end, we will examine (1) what is meant by the creation of
required value, (2) how customers should be perceived, and (3) how communication between
companies and customers should be considered, in this order, to develop a new marketing
framework.

Framework Derivation Approach

First, with regard to the value created by the company, we will consider value from the
customer’s perspective, assuming a scenario (event) in which the customer uses the product.
Essentially, the concept will be expanded from a conventionally narrow product concept to
include augmented product, thereby leading to a service design that offers a solution to the
customer (Figure 1). Second, the recipients of value (targets) are not the customers, who are
expected to purchase the product directly from the beginning, but a community of customers
(potential customers) that is interested in and empathizes with the values of the company and its
products. In other words, the recipient of value is regarded as a community instead of customers.
Third, communication between companies and customers no longer takes a basic marketing
approach (segmentation to targeting:
the STP approach) but is based on an approach that accurately communicates the value of the
company and its products (in the new sense) to increase consumer recognition, interest, and
desirability. This is made possible based on the assumption that companies can be connected to
their customers at all times through digital methods and that corporate and customer reactions
can be visualized even among the customers. Additionally, there is also an emphasis on the
communication of real customer experience so that customer empathy can be increased on
various occasions. The concept of community-based marketing has been conceived as a new
marketing framework as a result of this approach.

Community-based Marketing Concept

The community-based marketing framework is depicted in Figure

Figure 2. The concept of “community-based marketing” as a new way of perceiving marketing

1．Company to customer approach (Named “BC relationship”)

BC-1: Organizing an empathetic people

Companies create value from the perspective of providing solutions to the life issues of their
customers, including augmented product, and in communicating this value, they form a
constantly connected relationship with their customers through digital methods such as social
media and apps. The first priority is to build relationships with customers who are interested in
and empathize with the value created by the company (from potential customers at the interested
stage, to repeat customers who have already purchased, to experienced customers), and to create
a welcoming community environment for customers, rather than engaging in direct advertising
and promotional approaches to prospective customers. Customers who become part of a
community are more likely to obtain information that meets their interests, and they are also able
to see the opinions and activities of other customers, thereby encouraging the spontaneous
dissemination of information and interaction among customers. The “GOOD GROOVE
VEZEL” website that was launched in 2021 as part of a full model change for Honda’s multi-
purpose sport utility vehicle “VEZEL,” along with its social media approach, can be cited as an
example. The car’s features and other products are not showcased on the website, but the
company builds customer interest and empathy by communicating the VEZEL’s worldview and
the experiences of people enjoying their lives with the car.

BC-2: Nurture organized people into highly empathetic and informed people

In communications from the company to the customer, starting with the value created by the
company to be empathized with by the customer, the customer’s participation in the community
is encouraged so that they can be developed into someone who spontaneously and actively
transmits information about the use of the product service, thereby leveraging the customer’s
valuetransmitting behavior. In addition to utilizing ambassadors and influencers, such as
celebrities, as has been done in the past, it is important to find, through data and other means,
customers who engender a high degree of empathy among general customers and who are likely
to transmit information, such as recommendations, to others and to continuously nurture them
and utilize them.

2 ． Customer to customer approach—customer interaction relationship

within the community (Named “CC relationship”)

CC-1: Customers nurture new customers who come in

Interaction among the customers within the customer community should be emphasized. For
example, utilize the movement where customers who are ahead of others in terms of the themes
and styles of their lives (experts) nurture novice customers (beginners). Value transmissions are
made not only in the area of hobbies, such as sports and music, but also that of lifestyles, which
is closer to our daily lives, as a result of these interactions among customers. Such opportunities
should be increased. For example, at Natural House, an organic food store in Aoyama, Tokyo,
members visit the farms of local organic producers and attend cooking classes using organic
ingredients, which encourages customer interaction, and customers spontaneously communicate
value to each other through social media, where they share their life experiences and recommend
products to each other.

CC-2: Conversation excitement that comes naturally from customer interaction

In a customer community, on some occasions, the good qualities of a product and ways of using
and enjoying a product that were unintended by the company are empathized among customers,
thereby engendering lively discussion. This leads to an emergent movement that in turn creates
new product appeal and value. For example, the silver “decorated can (DECO KAN)” became
popular in online reviews for “NIVEA” by Kao, a consumer goods chemical company, in a way
that the company had not initially intended. In case of “Coolish” by LOTTE, a confectionery
company, new value was created when a mother found value in ice cream that children could eat
without getting their hands dirty and commented on it in the community, which was then
empathized by another customer and spread within the community.

3．Customer to company approach (“BC relationship 2”)

BC-3: Relationships among customers are spontaneous, and interactions are more active

It is important for companies to accurately observe the reactions of customers within the
community and to incorporate new forms of value that spontaneously emerge into their corporate
activities. Much has been said in prior practice-oriented research on user innovation (Ichikohji &
Katsumata, 2014; Kuwashima, 2013), including the value creation from interactions within the
customer community in ways unintended by the company, but the importance of this key point
should be recognized.

4 ． Collaboration between companies toward innovative value creation

(Named “BB relationship”)

BB-1: Corporate collaboration for new value creation

This enables the development of innovative new products that cannot be created only using
existing ideas and technological resources that are available within companies. A recent example
is the new cosmetics product “EST: Biomimesis Veil,” developed in collaboration between Kao
and Panasonic (launched in December 2019). Using Kao’s cutting-edge “Fine Fiber
Technology,” they developed new skin care cosmetics and devices that dispense ultrafine fibers
to create a laminated ultra-thin film on the skin, which then moistened with a beauty treatment.
This new product is interesting because it is a machine-integrated product like the “Nespresso”
that can be adapted to the individual needs of the customer.

BB-2: Maintain and enhance cooperation with other companies

Collaboration between companies is not limited to innovation in new product development but
can also lead to a significant expansion of marketing through the sharing of the management
resources of both companies. A case in point is the partnership between Honda and Sony in the
electric vehicle business (2022). In addition, through corporate collaboration, the customers of
the advertising communication and sales channels with which a company collaborates can
become the company’s own customers, thereby systematically and stably creating significant
marketing opportunities

Conclusion

We believe that the concept of community-based marketing will make academic and practical
contributions as a new marketing framework through its distinctive features as follows.

1．Expanded customer functionality

In community-based marketing, the customer’s role is broader than it is in traditional marketing

theory in that the customer is not only the recipient of value but also contributes to the value
creation of the creator. In other words, there is an interrelationship whereby the customer’s
response has a retroactive impact on the company’s side, resulting in increased value enjoyed by
the customers themselves. In addition, “customers nurture customers” in that those who have
become long-time users because they empathize with the values of the company and its products
voluntarily spread their reputation around, thereby transmitting value and increasing the
availability of information and the involvement of potential customers and new users. Thus,
community-based marketing can be described as a framework in which customer-driven
activities are incorporated into the marketing process as a key element.1

2．Realization of marketing based on actual numbers

In a customer community that a company has formed, it is possible for the company to ascertain
real number data on customer responses from potential customers, and based on that information,
it becomes possible to plan more accurately and respond more appropriately with their next
move. Compared with conventional marketing, which is based on hypothetical customer
segmentation, this approach is much more precise. In addition, it is a process of approaching
social media with a hypothesis, quickly determining the results of the response, and taking
corrective action if necessary.

3．Possibility of capturing the community type

Customer communities are categorized into four types as follows: (a) fan communities for
product brands (e.g., Comme des Garçons for designer brands, YOKUMOKU for confectionery
manufacturing/sales companies, etc.); (b) fan communities for professional celebrities (athletes,
artists, creators, etc.) (e.g., Tokyo Yakult Swallows (a professional baseball team), Avex (a
music and video production and sales company), “Hobonichi” (a cultural information provider));
(c) communities based on lifestyle empathy (e.g., Natural House for organic lifestyle,
NEUTRALWORKS (GOLDWIN) for sports and lifestyle, etc.); and (d) organized customer
groups that are part of corporate sales (e.g., financial institutions, advertising agencies,
consulting firms, etc.).

Among these, while there have been previous studies on (a) product brands and (b) communities
related to professional celebrities, such as brand community (Muniz & O’Guinn, 2001) and fan
community (Sato, 2018; Yamashiro, 2017), (c) groups of customers who empathize with the
same lifestyle can be considered a new form of community, and new approaches to
communication can be suggested.

Furthermore, (d) corporate sales have traditionally been dominated by approaches that manage
the flow of business of potential prospects through funneling by repeated negotiations until the
conclusion of contracts (conversion into customers). However, in some cases, community-based
marketing can be effective, as in the case of Kiraboshi Bank’s “Digibata” initiative (an online
business community that aims to match the intellectual assets of client companies with each
other).

With regard to these four types of communities, we can say that community-based marketing is a
concept that can be comprehensively applied to any of them.

Community-based marketing is expected to have a high level of potential for application to (c)
lifestyle empathy-based communities in particular. In other words, in addition to the existing
communities for things like organic food and sports, companies can develop a variety of other
lifestyle areas. When companies create value for consumers, they can nurture numerous
customer communities depending on how they set up related lifestyle themes and solutions,
which further expands the potential for the application of community-based marketing.

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