FOR MARKETING PROSPECTIVE --- Octobe 28, 2003
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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?