Master the basics

Digital Marketing

Presented by Jagad Narednra

Hey I’m,
Jagad Narendra
I currently worked at
Omnicommedia group
Client Portfolio
Today Agenda

● Marketing Recap!
● Introduction to digital marketing roles and responsibilities in business
● Introduction to digital marketing Funnel
Section 1
Marketing Recap!
 Let’s start with a question

What is Marketing?
Definition by experts

01 02 03
Dr. Phillipkotler
“the science and art of
exploring, creating, and
American Marketing
Association (AMA)
Is the activity, set of
institutions, and processes
Seth Godin
Marketing is an important
tool for creating change and
delivering value to for creating, should be used generously
satisfy the needs of a communicating, to improve lives. As a social
target market at a delivering, and entrepreneur/changemaker,
profit. Marketing exchanging offerings that your marketing is an
identifies unfulfilled have value for customers, extension of your mission,
needs and desires” clients, partners, and your values and society
society at large. needs you to be good at
marketing.
Scope of Marketing
Marketing mix

Product Price Place Promotion

4 P’s of
Marketing mix
“For whom and how will you “How much will “where could “How do you approach (Core function)
solve their needs/wants” it cost them?” they find you?” them?”

People Process Physical Evidence

7 P’s of
Marketing mix
“who you are going to serve “What is the journey for “How will they interactand
(additional
and how your people can them to acquire your experience your business?” function)
serve them?” product/service?”
Understanding
marketing channel

Modern Trade
Imagine you have the product TV
and its price already set, now
what?
General
General Trade Events

Promotional
Trade

Channel
Distributor
Channel

Magazine
Wholeshaler

Radio

E-commerce
Internet /
Digital

This is what we will cover in

our class ahead!
Section 2
Introduction to Digital
Marketing roles and
responsibilities in
Marketing
 Let’s Review
Howexchangevalueonline happened in
this class!

You were exposed with

an Ad while you are You clicked ‘Book Now’ and You clicked and came
came to this Landing Page to Checkout page for
opening Instagram Ads
payment
 Pop-up Question

What makes a successful

Digital Marketing effort?

Wait a sec.. Who define its

success?
Principal of Digital
marketing success

Right Objectives Right Messages Right Audience Right Channels

/ offerings and Moments
Translating the
objectives
From Business
to Digital marketing Brand and creative Common Digital
function Marketing function

Business Marketing Communication Digital Marketing

Objective Objective Objective Objective

Is how Is how Is how

Is a top-level
marketing marketing digital, as
objective that required
dept. will dept. will one of the
to maintain company
translate it translate it tools could
growth. Example but
into their into their help gain
not limited are
KPI’s KPI’s the KPI’s
Example Example Example
Example
• Increase Market share by • Increase brand top of mind by • Increase more consumption and
• Increase or maintain
10% 10% product awareness by 10%
profitability and
revenue by 10% • Increasing Market Penetration • Increase brand perception as • Increasing Market Penetration or
• Increasing customer by 10% the highest quality products customer acquisition by 10%
base 10% • Reduce overall Marketing by 10% • Reduce Overall Digital Marketing
• Improve overall Investment 10% • Increase brand value by 10% spends by 10%
efficiency by 10%
Key Terms in Marketing context
Market Size
Definitions
Is the number of how much your business
can potentially gain in terms of Money from
your target consumers or Buyer Total Potential
(In Total Revenue) % or volume Market
Total Number
of potential
consumers
who may need
/ wants your
product
UseCase
This is usually used for estimating demand,
how much products should you produce
and how much marketers should reaching
Total Number
out to of potential
consumers
In-market who currently
seeking your
SimpleCase Study products and
Indonesia has 270 Million population where wants to buy!
60% of it is in productive age (25– 60 y.o.)
As smartphone usage continue to be
primary needs for this age group. How
much is the potential market size in a year?
Key Terms in Marketing context
Market Size (base method)
Step [Link] your target consumers and estimate its number
i.e. Productive age - Male / female 25 – 60 y.o.
After researching, we have found that this consumer group comprise 60% of
Indonesian Population. In this case, it accounts at 162 Million consumers

Step 2. Determine your penetration rate

Penetration rate is the rate of your target consumers have ever used or buy your product or
similar one from competitor to total potential buyers
As we know that most of Indonesian consumers are highly likely has smartphone. In this
case, the penetration rate could be as high as 90% as an assumption. Meaning, we assume
that 90% of MF 25 – 60 y.o. in Indonesia has ever used or buy smartphone in their life

Caveat!
Product penetration is varied between industry, for example
• In the early days of smartphone in 2000’s. Computer penetration rate could be as low as
10% in Indonesia
• For Luxury products, for example Lamborghini, the penetration rate could be as low as 0.1%
to total Indonesia population!
Key Terms in Marketing context
Market Size (base method)
Step 3. Calculate the market Volume
Now you have penetration rate and the total number of your potential buyer. W e can multiply the
number of target consumer times penetration rate

Market Volume: Number of Potential Target consumer x Penetration Rate

Using our simple case, the market volume would be

162,000,000 consumers x 90% = 145,800,000

Meaning, assume that there is no competition within Smartphone market, there is
potentially 145 Million audience we need to reach them out, make them know and purchase
our Smartphone!
Key Terms in Marketing context
Market Size (base method)

Step 4. Calculate the market Value

As we already have the market volume, now we need to know how much $ we can gain from
smartphone business to estimate it’s monetary value

Market Value (IDR): Market Volume x Average Price x Purchase Frequency

As we already have market volume number, we can just multiply it by the average Price per
unit for a smartphone. Assume that purchase frequency is at only 1per year, or that
consumers are buying 1smartphone per year at the average price of 4,000,000 million
IDR/unit

145,800,000 x 4,000,000 Million IDR x 1= 583 Trillion IDR / year

In this most simple form of estimating market size, this mean that the potential market for
our smartphone is stands at 583 Trillion IDR per year

For Digital marketer, this could mean that at least we need to reach a total of 145,800,000 of
MF 25-60 via online at maximum level (or lower at optimum level) to make them know
about our smartphone
Key Terms in Marketing context
Market Size (base method)
Step 5. Find the in-market value and size
Now we know that our total potential buyers is stands at 583 Trillion IDR / year driven by total consumer of
145,8 Million. However, assume that the purchase rate for this Industry stands at 30% per year. The
purchase rate, is the rate that consumers are likely to purchase at a given time, in our case in one year.
Meaning, we assume that only 30% of total potential buyer would have the intention to buy smartphone
this year

In-Market Value = (Market Volume x Purchase Rate % ) x Average Price per unit x Purchase Frequency per
year
Hence, by factoring in purchase rate per year, we will have

(145,800,000 x 30%) x 4,000,000 x 1=174,9Trillion IDR / year

43,740,000 of In-Market Audience

For Digital Marketers, this could mean that we need to convert those 43,7 Million who have
intention to buy smartphone this year to purchase our smartphone!
Key Terms in Marketing context
Market Size

Caveat!
This is just the most basic illustration of market sizing calculation. As in the real
world you may need more thorough research done by dedicated internal team
of consumer research of third-party marketing research!

Other Advance Method you may know

• Top Down : Is a method of estimating the share you can gain from the total
market size.
Example: Using top-down, we are targeting 10% share of total smartphone
market size in one year
Calculation: 10% x Total Market Value (583 Trillion)= 58,3 Million
• Bottom Up: Is a method where you are forecasting the potential sales
based on current resource or actual data
Exampe: we need to know how much is the total smartphonestore available,
how many each store sell your products for the past 3 months, and so on
Key Terms in Marketing context
Market Share
Definitions
Is the percentage of your total sales from
your company to total of the market value
SMARTPHONE MARKET SHARE IN VALUE %
YTD 2020
UseCase
Our Company Company B Company C Company D
This metric is used to know how are we
performing within the competitionin a
given period 10%

SimpleCase Study
Fromour previous case, assume now we have 40%
competition, we receive information that this year we 30%
have 40% Market share in value. What does it means?

Market share in Value = Market share % x Total potential

market value
20%
40% x 583 Trillion IDR = 233 Trillion IDR

Meaning, we are able to generate 40% of the market

and generate 233 Trillionsales to our business!
Key Terms in Marketing context
Brand Health!
Definitions
Is the measure of understanding your
brand performance that could be Common Brand Report Example
impacting your sales performance. It Metrics
comprise a qualitative study and the
human elements in marketing!

UseCase
This metric usually used by marketing
team to ensure its health and audience are
aware our products, having a good
perception in it and finally choose us
instead of others!

Caveat!
In reality, although our brand health is good as
opposed to competitor, we may have lower %
of certain metrics, this is where the art comes
in!
Key Terms in Marketing context
Consumer perception and
Example of consumer
preference preference
Definitions
Is the measure of understanding your
consumer preference on what you have
done well or what to be improved as
opposed to your competitor, to make sure
you are the best in fulfilling their current
needs / wantsand touch their emotion
UseCase
This metric usually used by not only
marketing department but also other
business functionas well, to make sure
that we are providing better product or
service and communicate it clearly to our
consumers!
Other important metrics
Brand Value Index and NPS

• Value Index =
(Brand Value +Product Functionality)/Price
• NPS = Net promoter Score=…..(Google this!)
In a brief summary
What most marketeers
wants?

Leading in Market share Good in Brand Health Our products are perceived
great and preferred by
SMARTPHONE MARKET SHARE current market needs!
IN VALUE %
YTD 2020
Our Company Company B Company C Company D

10%

40%
30%

20%
Wait, HowwouldMarketing in
Digital differ?
Elements of Marketing Mix
Over the Internet
Product Price Place Promotion People Process Physical
Evidence
Creating product Price positioning E-commerce* Product key Customer Support Marketing Marketing logo
selling points message* Training Funnel* and collaterals*

Brand Discount* Owned sites* Branding and Social Media Customer Websites
management* positioning Admin training Journey*

Product Payments Whatssapp* Influencers* E-commerce Customer Packaging

Features (GoPay, Admin training Experience*
ShopeePay)*

Product Variants DM IG* Online Channel E-Commerce

activation* Relationship
(FB Ads, Google Manager
Ads) negotiation

Product On-site
Management and optimization
Portfolio

*Will be covered as core

function
 The Core benefit of
Digital Marketing

Then.. Now..

• Unable to track the fish (Customer) • Clearer understanding in tracking of their

• Lack of understanding the impact of your fish using technology
bait • Direct understanding of your bait impact
• Need more research in understanding • Able to track direct report on whether
your fishing effort to your fishes your fishing techniques and effort has
direct correlation with sales
So..
What is Digital Marketing?

Is the used of digital medium such

as internet, mobile device,
electronic billboard to create,
communicate and exchange
value to improve one’s life and
fullfiling their needs or wants
Section 3
Introduction to Digital
Marketing Funnel
Digital marketing
building blocks
The POEM of Digital Media

PAID OWNED EARNED E-COMMERCE

Media channel that we Digital media (i.e. social Media that is received from Digital channels that we
pay to promote our accounts) that are own and others such as organic leverage to receive online
business control by ourselves mentions in social and sales
bloggers
Introduction to
Marketing Funnel

Traditional Marketing Funnel Advance Digital Marketing Funnel

Marketing Funnel by definition

A way to illustrate customer journey

as they move down from “awareness”
stage (when they first knowing your
business) to purchase stage ( when
they are choosing your products and
made a purchase)

AIDA Model,
E. St. Elmo Lewis.
 • To know which area we need to focus on or investing
more in it
• Channel selection and consumer journey
• Setting Advertising objective
• Budget Allocation
• Performance Evaluation

The Purpose of
Marketing Funnel
Models of
marketing
funnel in
Purchase Behavior

• Low pre-purchase • High and lengthy pre- • Low pre-purchase • Consumers tend to go to

businesses
research and purchased research and research and each stage of the funnel
consideration consideration consideration in a well-planned
manner
• Medium pre-purchase
How businesses research

implement marketing • Few or Indiv idual buyer

decision with low post-
• Inv olve multiple
stakeholder or buyer
• Few or Indiv idual buyer
decision y et buyer tend
• Mid inv olvement of post
purchase experience or
funnel differently purchase advocacy decision to adv ocate the products adv ocacy

Industry example

• Daily mass consumer • B2B serv ices • Ov er the counter drugs • Electronics
package goods (i.e. • Hotel / Trav el Industry • Specialized CPG • Online Ticket
body Wash, Shampoo) • Automotive products (i.e. Acne • Education
Soap)
• Food and Bev erage
• Make up / Cosmetics
How would Marketing Funnel
differ in Digital?

FROM TO
Focus on finding prospecting consumersto be
Awareness
aware of your brand and product solution

Focus on turning prospect into leads by

Consideration guiding them to know more about your
product / service, subscribe to your
business or engage with you brands

Conversion Focus on turning your prospect and leads into

buyers and or retain them
 Pop-up Question

How does a customer journey

of Airbnb look like?
 It usually starts with a They get exposed with Airbnd Ads
problems/tension and click on it

They are searching their vacation trip

as they are stress out in their work
Opening the website/app They find the right hotels and check-in!
Marketing Funnel in
Action:
Awareness stage

Level of Consumer Commitment

Low Medium High

This is where you consumers start the journey. In this phase they are
less likely knowing you and have interest in your product/service.
Hence, we need to be attractive, valuable and unique in the way we
are explaining our products!

Audience in digital can be aware of what you are offering via Facebook
Ads, Google Ads and evenTikTok!
Consideration Stage

Level of Consumer Commitment

Low Medium High

This is where your audience has interest and desire by starting to

knowing more about you

This phase could be represented bythe action that theyare doing

such as visiting your website, liking your Ads or even following you in
Social Media. However, it doesn’t guarantee that they will purchase!

Reminder!Just because the already considering you, it doesn’t mean

that they will choose you directly, this is where review, your brand
reputation, influencers, scarcity, user experience comes into play!
Conversion Stage

Level of Consumer Commitment

Low Medium High

This is where your audience has chosen you and buying the products /
service you are offering with, or else this could be the phase where they
already convert into your customer by being a member

This phase could by the final action you designated your consumer
into, commonly is about purchasing your products or hire your service
Digital
marketing
funnel in
many
Industry
FMCG
Digital
marketing
funnel in
many
Industry
e-commerce
Digital
marketing
funnel in
many
Industry
B2B
Funnel Best Practice
• What can’t be measured, its hardly to be improved

• Digital Marketing, especially in Paid ads, works single mindedly to achieve your
single objective and KPI. No-multi ads product is suitable for all of your objective
just yet

• Digital marketing has a building blocks of POEM, owning only one of it could be risky
and leads you to knowhere

• Funneling, works uniquely for different kinds of business, know what suits you most!

Few reminder
Final QnA!
Online
Assessment
Day 1
THANK YOU