FOR MARKETING PROSPECTIVE --- November 4, 2003

FOR MARKETING PROSPECTIVE --- November 4, 2003

done

Winning customers' health through entertainment events

T. Hidayat
Contributor
Jakarta

In today's highly competitive business environment, marketers
have to outsmart each other to win consumers' hearts. The
marketing and sales department is becoming more vital, in fact
the front line, for a company's survival. It is compelled to be
more innovative and creative in producing effective short and
long-term marketing strategies.

Modifications and adjustments in the "4Ps" (product, price,
placing or distribution and promotion) of marketing mix are a
must to meet the ever changing requirements of fickle and
demanding customers. Among the "4Ps", adjusting the promotion
element is found much easier by many companies.

"One of the challenges in marketing is how we communicate with
our consumers. It is a unique art in itself," said Heri Djohan,
general manager of PT Topindo Atlas Asia, the producer of TOP 1
Oil. This company uses all the available media as well "below-
the-line" (non-conventional media, such as billboards, events and
so forth) in the most strategic way.

For quite some years now many marketers have realized the
importance of one method of promotion, categorized in the "below-
the-line" activities, that directly connects both the company and
its product with the consumers: Events or especially
entertainment marketing. "Promotion should be treated as and
produce two-way communications," said Hokiono, area sales manager
for the West Indonesia marketing division of PT HM Sampoerna, a
major cigarette manufacturer here.

Hokiono further said that the entire promotional activities
that include events and the like is often referred to as
experiential marketing. A successful experiential marketing, that
comprises personalized and customized promotional elements,
results in customer satisfaction and sustainable customer
loyalty. Another desired result is positive word-of-mouth, one of
the oldest and unbeatable promotion methods. "The name of the
game is winning their (customers') hearts, which automatically
leads to sales and, naturally, profits," he said.

One of the experiential marketing methods preferred by a
number of marketers is entertainment-related events. This
promotion is often called "entertainment marketing". By holding
such events the company expects the captive audience or the
intended target market is not only entertained but emotionally
attached to its brand.

Among the country's major companies who believe in the power
of entertainment marketing, PT HM Sampoerna stands as one of the
most aggressive as for years they have sponsored various musical
concerts, sports events and so forth.

One of the recent mammoth musical concerts held throughout the
nation was A Mild Soundrenaline, applauded as the Indonesian
version of Woodstock. The Indonesian Basket Ball League (IBL) is
also on their portfolio of entertainment marketing.

Other companies have also gained results from their
entertainment marketing. Bank Mandiri, for example, is the main
sponsor for the Liga Bank Mandiri soccer competition. TOP 1 Oil
is one of the official sponsors at Sentul racing circuit and the
company owns a racing team, TOP 1 Racing. PT Djarum Kudus,
meanwhile, sponsors various musical and sports events.

"Just like "above-the-line" advertising, each event should be
consistent with its product image and positioning. It must also
be right on target, meaning the attendees should mostly be within
our target," said Heri Djohan. That is why TOP 1 Oil has car
racing on its agenda. The company also thinks the money spent on
sponsorship is worthwhile and the cost of having its own racing
team is well spent. "If our team wins, automatically that
enhances our image," he added.

Hokiono was very much of the same opinion as Heri. "Next to
being on target, we may never implement our programs half-
heartedly. Half-baked events will leave a bitter taste with our
customers as well as future consumers. Obviously, our brand image
is at stake. We can never risk that. So do it well, or not at
all," he said.

Both Heri and Hokiono concurred that so far their
entertainment marketing programs had significantly boosted sales
figures. Cost-wise, they said, the programs were also efficient
in comparison to the huge budget of conventional or "above-the-
line" advertising. However, each kind of promotion, the "above-"
and "below-the-line", has its strength and role in the entire
marketing and communications strategy. Both of them agreed that
the right blend was required, otherwise the effectiveness was
watered down.

So, wouldn't you like your cash register to ring merrily once
you correctly conduct the full orchestration of promotion,
including the entertainment-marketing?