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NOON NOPI
The Art & Science of Marketing in Asia
www.yonsei.ac.kr/press
Foreword
July, 2015
Contents
PART I
WHAT IS MARKETING
8
10
PART II
MARKETING STRATEGY
CHAPTER 4. Marketing Strategy: Dinosaurs,
Monkeys and Cockroaches
52
54
61
Contents
CHAPTER 6. TRANSING
68
90
97
PART III
CUSTOMER CATEGORIES in
Asian Marketing
106
129
PART IV
MARKET SELECTION
CHAPTER 11. MARKET SELECTION
142
144
151
164
PART V
182
184
209
PART VI / APPENDIX
234
236
Index
320
PART I
WHAT IS
MARKETING
10
WHAT IS
CHAPTER 1
MARKETING
The Meaning of
Marketing is
Noon Nopi
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So with all that in mind let me also throw my hat into the ring of analready jumbled array of definitions in the marketing world. I would like
to explain that marketing is simply the quest for Noon Nopi. What is
that you might ask? It is a Korean word which translates literally as Eye
Level.
My favorite anecdote about Noon Nopi involves my son when he
was about 3 years old. He loved to eat chocolate bonbons but since
I feared that he liked them too much I finally decided to stash them
inside a refrigerator where I could access them for him (or for myself,
ha ha) when needed. At first I didnt notice that these bonbons were
disappearing but at some point it was clear that they were. From my
vantage point, they still looked well-hidden but when I stooped to my
little sons viewpoint I realized that from there those bonbons were very
easy to pick out and reach even by him.
That in a nutshell is what occurs daily between a seller and a buyer
the seller thinks he knows the consumer from some perched level only
to find out that down below there may be a very different perspective. A
car manufacturer assumes that a potential driver is interested in going
very fast whereas in fact many car owners care more about how fancy
or just how fast it looks.
Looking fast and actually going fast is a crucial difference that
influences important engineering decisions by an auto company
and can affect tens of millions of dollars in added investment or cost
savings. That gap can be hard to bridge without precise Noon Nopi
management.
In that sense, marketing is somewhat like filmmaking since both, at
the core, are heavily related to having a perspective, not only your own
but at times taking on someone elses. Framing becomes an important
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13
A simple example of Noon Nopi is Starbucks that has for many years
tried to spread the Coffee House experience imported from Europe to
other regions in the world including to Asia.
At Starbucks one can order different types of coffee or tea and also
try to customize them in terms of size, water, additional flavoring or the
style of service and delivery.1 They have also tried to customize the
store interior and exterior going as far as writing the brand name in the
local language. You might argue that it is a higher order of Noon Nopi.
The differences among sellers may not be as extreme but
nonetheless exist. For consumers, they too have to go out and try to
select the product that is appropriate for them. For high school students,
the selection of the right college can be a daunting task as now in the
global age, its not just the hundreds of schools in their native countries
but also the tens of thousands schools abroad. Against this backdrop
where you have many consumers here and many sellers there, in the
end, to solve the problem of finding that right consumer for that right
seller requires a meeting of the eye, i.e. Noon Nopi.
14
his book will get into some details, especially in Part V, about
the various tools that a company has at its disposal to execute
its marketing concept. These elements are often referred to as the
Marketing Mix and this term stems from the right cocktail of the
ingredients that need to be added to make the marketing strategy
effective. The primary elements are typically separated into four main
categories, product, price, place and promotion. Since all of them start
with the letter P, they are collectively called the four Ps.
We can think about the 4 P marketing mix of Starbucks as with
the following diagram. At the top of the diagram we see the guiding
principles for the specific execution which is Starbucks marketing and
brand concept A Third Place.
This refers to creating a space that is not home nor work but a
haven to which a user can feel comfortable and relax. To make sure
that this does not remain just an abstract motto, it has to be made real
in a number of different ways. The product is to offer not only the best
coffee available but also customized service as that is where the brand
objective of differentiation is achieved.
15
For pricing, Starbucks has premium prices that are aligned to the
high quality of the coffee beans and the service. It is sensitive, however,
to the recessionary pressures that inflict many countries and therefore
they make sure that the most affordable size is always available.
Place, which means distribution, is very important for Starbucks
since, after all, providing A Third Place is their Brand Mantra. They
make sure that these stores are accessible and as discussed above
fit into the style of the neighborhood both from the inside and out. The
interior layout is designed to heighten ones mood for relaxation and is
helped by consistent lighting and music invariably jazz.
What is perhaps the most unconventional marketing mix execution for
Starbucks is promotion or the lack of it. To make their brand feel more
individualized they avoid mass outlets such as television or newspapers
and instead rely on word of mouth between consumers.
16
17
California Island
Of course now it is clear that the long Baja Pennisula of California prompted these
early visitors to commit that misconception but what is much more surprising is
that, despite evidence collected to the contrary, it lasted for a few centuries.2
Johannes Vingboons, California Island Vinckeboons 5, 1650, Library of Congress,
Wikimedia Commons, <http://commons.wikimedia.org/wiki/File:California_island_
Vinckeboons5.jpg>
18
stronger personality.
A well-accepted principle in marketing is that brands develop
personalities with whom people enter into and try to maintain
relationships.4 Like with the California map, these perceived brand
personalities sometimes endure for a long time.
For companies to become like that they need to not only establish the
reasons why consumers should believe their brands are the right choice
at the outset but also keep or even enhance those beliefs. It boils down
to precise Noon Nopi management since customer expectations may
change over time.
Again the brand as a person analogy helps us to understand
that relationships often evolve whether it is between a couple, family
members, or friends. Relationships can only last as long as the parties
involved mutually agree that they are worth keeping. In the case of
incumbent brands, consumer loyalty is tested by the lure of challenger
brands. If their loyalty is not rewarded consumers then may be swayed
to shift allegiances.
The three key questions that companies need to ask regarding the
Brand Noon Nopi are the following:
1. Is the Brand Concept still relevant?
2. If the existing concept is outdated, what then is the renewable
concept?
3. What are the key Brand Associations needed to communicate
the new Brand Concept?
The first two questions deal with the conceptual aspect of the Brand
Noon Nopi whereas the third one involves the practical and detailed
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GAP, the giant apparel company found out how powerful social media can be
when they unintentionally encouraged a viral campaign to withdraw their new
logo. Ten of thousands of consumers loyal to the old GAP logo tweeted and
Facebooked their friends to demand that GAP go back to their familiar logo. After
about a week after the launch, GAP retracted and restored their logo much to the
relief of their faithful customers.
20
INTERNATIONAL
MARKETING &
21
CHAPTER 2
Noon Nopi
A
22
Conceptual
Eye Level
Executional
Eye Level
Conceptual
Eye Level
23
Executional
Eye Level
24
Conceptual
Eye Level
25
Executional
Eye Level
26
27
One of the surprising, almost shocking facts that I learned while living
there was that intra-continental air travel in Africa was relatively new. For
someone to travel from Nairobi Kenya to Lagos (now Abuja) Nigeria,
they had to take a transfer in London as in London, Great Britain. As
ridiculous as this may sound, if you factor in the total air travel time (lets
28
assume it can be 2 days with no layover) of the trip involved, this makes
sense when compared to the many more days that traveling on land,
such as by train, would require.
When I talk about Asian marketing outside of this region, I mention
this old way of intra-continental travel as an analogy of how Asians
regard marketing in Asia. We have had, and still do in some measure,
a Nairobi via London syndrome. We assume that a marketing best
practice has to be vetted and acknowledged in the U.S. or in Europe
before it can be accepted here at home or in the region.
There can still be global marketing in Asia that looks like Figure 2.3
above where only one type of marketing exists for all regions. The big
difference that I expect to see, however, is that rather than having Asia
follow the lead of other regions, Asia can be in the drivers seat and be
the initiator of innovative marketing, whether it is by companies or by
consumers.
Like Marco Polo and Columbus coming to Asia oh so many years
ago, marketing in Asia can be not just about western companies
coming here to tap the fast growing consumer demand for their
products and brands, it should also be about learning business and
marketing from Asia. So instead of describing Alibaba as the Facebook
of China or the Google of China, in the near future we may see more
western companies being called the Alibaba of the U.S. or of some
other western country.5
From an international marketing perspective, the branding becomes
very important since it affects both the concept and practice of Noon
Nopi and how a company adapts to a new market. The three simple
steps outlined above about branding can and should be re-applied
in new markets such as Asia or by Asian companies contemplating
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