MIDTERM TEST

2/22/2020 MARKETING
MANAGEMENT
MBA – ITB ENEMBA 5

Fuad Aulia Bahri

29319472
1. Introduction
a) Definition of Marketing
 Marketing deals with identify and meeting human and social needs.
 Marketing is an organizational function and a set of process for creating,
communicating, and delivering value to customers and for managing customer
relationships in ways that benefit the organization and its stakeholders. (American
Marketing Association)
 The process by which companies create value for customers and build strong
customer relationships in order to capture value from customers in return (Kotler
2013).
 More simply: Marketing is the delivery of customer satisfaction at a profit. The
shortest: Marketing is “meeting needs profitably”
In another meaning Marketing is the activity, set of institutions, and processes for creating,
communicating, delivering, and exchanging offerings that have value for customers, clients,
partners and society at large. Also included in the definition are all of the activities that help
businesses reach their target market effectively.
Key words in marketing:

Strategy Advertising Sales Price

Discount Business Growth Promotion

Branding Product Network Customers

Media Product

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 b) Understanding “Value”
Value is about the customer perception/intuition about the product divided with “brand”,
“Service”, and “Process”
Benefits
Value=
Costs

Functional Benefits + Emotional Benefits + Self −Expressive Benefits

Value=
Monetary Costs+Time Costs+ Energy Costs+ PhysicCosts

Functional benefits are based on a product attribute that provides the customer with
functional utility. Examples of functional benefits include the phone capability of an iPhone,
the thirst-quenching offered by a bottle of water and the warmth of a wool sweater.
Self-expressive benefits provide an opportunity for someone to communicate his or her self-
image. A self-expressive benefit can include the elegance and the feeling of being cool
projected by the Apple iPhone, the raw masculinity projected by the Harley-Davidson
motorcycle brand or the luxury displayed by carrying a Louis Vuitton bag.

Emotional benefits provide customers with a positive feeling when they purchase or use a
particular brand. They add richness and depth to the experience of owning and using the
brand. Examples of emotional benefits include the “feel-good” factor when purchasing
groceries carrying a fair-trade label or when donating to charities such as the Heart & Stroke
Foundation. Buying local or organic foods has also started to carry emotional benefits,
although most brands in these areas are niche brands that are currently not well known to
others than enthusiasts.
Money cost: It is the price of the product that customer buys and achieves desired utility. In
other words, it is the price paid for the product or service for its utilities by the customer.
Time cost: It is the time spent for searching, evaluating, buying and other decision processes
related to product. High involvement product has high time cost than low involvement
product.
Energy cost: It is the degree of physical effort used by the customer for searching,
evaluating, buying desired product and also taking them to their house.
Psychic cost: It is the cost related to frustration and dissatisfaction of the customer with the
product and service. It can occur during various stages of the buying process

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2. De Beers Group: Marketing Diamonds to Millenials
a) Segmentation, Targeting, and Positioning of De Beers Diamond
i) Segmentation
(1) Geographic, Country that buy and used diamonds for developing and rich
country
(2) Demographic
(a) Age aim for the adult and become mature people
(b) Psychographic for gift
(3) Psyographic for gift, the precious thing, collection

ii) Targeting
(1) Geographic Top four largest market for diamonds:
(a) Country = USA, China, India, Japan which are the city broudly found in
urban areas the. (39% of potential customers were millennials, the rest
were for baby boomers and gen Z)
(2) Demographic
(a) Age
When in 1960 average age for people to marriage are 20 years old for
women, 23 years old for men, then it is change in 2019 average age for
people to marriage are: 27 years old for women, 29 years old for men
(b) Psychographic
Gift for valuable gift from travel abroad
Diamonds Engagement Ring as were an important symbol of
commitment

iii) Positioning
De beers positioning at the first are in luxury jewelry and for the people will be
marriage will buying the diamonds as a gift. But because of the external issues and the
needs of the customer behaviour is change. The company use some some strategic
positioning method based on the customer segmentation and needs
(1) De Beers Jewellery Brand for targeting US consumer and the for top and
quality jewelry
(2) Forevermark brand for targeting outside US mostly in Asian consumer
adapted to the local culture
(3) Lightbox / Element six (synthetic diamond) brand for synsthetic diamond

b) Why People Buy Diamond

Why people buy diamond? we must know first about customer Needs, Wants and
demand. Needs are states of felt deprivation including physical needs for food example: I am
hungry. Wants form that a human need takes as shaped by culture and individual personality
example: I want to eat at Hanamasa. Demands human wants backed by buying power
example: I have money to eat at Hanamasa,

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 Why people buy diamond? it’s a needs or wants and the demand of diamonds itself.
We must know about the consumer behaviour Maslow’s Hierarchy of Needs. Diamons for
my perspective is for esteem needs and self actualization

Motivation Increases as Being (growth) Needs

needs are met

Motivation decreases Defeciency Needs

as needs are met

Here are the examplewhy people buy diamonds for estem needs and self actualization.
 Diamonds Engagement Ring Tradition - 1938 marketing campaign De Beers
famous slogan ‘A Diamond is Forever’ was created in 1947 by Frances Gerety
 Diamonds as a Symbol of Longevity – the old people believe that having a diamond
is a symbol of longevity. The qualities that make diamonds so valuable in the
industrial sector – qualities like longevity, durability, and clarity – are transferred in a
symbolic way to diamond jewelry, especially when the diamonds are given as a gift.
 Symbol of worth - measure self-worth
 Celebrating moments – gold anniversary marriage celebration
 Redemption – Saying sorry or the need to make a point of how important a person is
to you can be well expressed with diamond jewelry
 Purely a gift – giving from travelling abroad

c) What are the 3 main issues De beer faces? And the solution
External issue Dee Beers faces:
Political Issue :
1. 1991 – Soviet union disintegrated, de beers unable to enforce contracts, Russian
diamonds were being smuggled onto international market causing prices to fall
2. 1999 - Namibia inserted a clause in new law permitting the government to force
miners to sell a percentage of their diamonds to local polishers
Social Issue :
Turning into a public relations nightmare for the entire diamond industry by buying “blood
diamonds: the proceeds of which went toward financing the armed conflict

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Technological issue:
Synthetic diamond were lab created with the use of much easier processes like HPHT (High
pressure high temperature) and CVD (Chemical Vapor Deposition)
Environmental issue:
3. Diamond Mining had taken a toll on land based wildlife habitats
4. Diamond Mine required the use diesel to operate, adding to the production of greenhouse
gases
5. Synthetic Diamond was ecofriendly than natural diamonds
Challenges in marketing diamonds to millennials:
 Millennials hadn’t purchased diamonds to the extent that older generations had when
they’re the same age
 Lower purchasing power Higher debt levels
 Getting married later in life or not getting married at all
 High value consciousness and significant concerns related to both environmental
sustainability and social responsibility (leading to interest in diamond alternatives)
Solution from Challenges in marketing diamonds to millennials
1. Offering to attach the diamond on high-end brand products
Example: Loui Vuitton, PARIS, Channel, BALMAIN, ROLEX, Gucci
2. Synthetic Domination (Renewable)
Push Lightbox as the top choice for high-end luxury product for millennials Why? Natural diamond is
experiencing a fall in sales. In October 2019, there was a 39% fall in sales, that even followed a 44%
fall in the previous year.

3. Specialization
Offer more millennial-centric approach to their sales tactics such as; promoting diamonds as
birthday gifts, gender-neutral advertisements, promoting diamonds as family gifts, or even
collaborating with pop culture artists/franchises/icons in order to increase exclusivity and relatability
among millennials.

4. The new wave of marketing in diamond industry

Influencer effect - Using a horizontal approach to a buyer which friends with the
buyer to selling and promoting the product
Social media - Using the social media such as facebook, Instagram, twitter will
approach retail which mean millennials are addict to use it
Diamond Community - Making a event with buyers community and embrace them

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 3. Honey
Madu sellers in Instagram: the first one name is madusaheela 59,6K followers. It is the
honey after processed. And the second is sarangmadumurni. Sarangmadumurni it is quite
unique because the sell the honey from the nest. The customer can see the taste of natural
honey directly from the nest and it have 207 K followers imperessive

Madu sellers in facebook. It is not massive as Instagram. It is only have 5 k members. That
doest name the brand

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Honey from website is frommadusaheela that same from instragram. They using advertising
method in google search they are in the top search engine

https://madusaheela.com/madu-sarang-saheela-g/?
gclid=Cj0KCQiAnL7yBRD3ARIsAJp_oLaYFLKKpW4UOlx2rvsi8LfAffRQaGw2apKcmoIDjuFsNpx_yOXkK6g
aAl9QEALw_wcB

From onlineplatform there are so many honey option.

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 a. Segmentation
Demographic : All age (good consumtion after 3 years old) mostly in productive ages
Georaphic : All location in Indonesia (near the production place for efficient supply
chain)
Behavior: People which want to consume honey the natural ingredient as medicine
and the healthy food lifestyle
There are many health benefits from honey
1. Honey Contains Some Nutrients
2. High-Quality Honey Is Rich in Antioxidants
3. Honey Is "Less Bad" Than Sugar for Diabetics
4. The Antioxidants in It Can Help Lower Blood Pressure
5. Honey Also Helps Improve Cholesterol
6. Honey Can Lower Triglycerides
7. The Antioxidants in It Are Linked to Other Beneficial Effects on Heart Health
8. Honey Promotes Burn and Wound Healing
9. Honey Can Help Suppress Coughs in Children
10. It's Delicious, But Still High in Calories and Sugar
b. Target
Millenials workers that wants to consume natural honey directly from the nest.
Because they have heathly benefit to health. Because my honey from the quality honey that
from quality bee that using high technology for production
c. Positioning
The best quality of honey comb to fullfill your nutrition for all day activities

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 d. Create the Brand
My brand name is about sweet honey. It is quite unique from the another brand
because the honey are from the nest. So its fresh from the nest. The brand produce locally in
the house so it is very natural because don’t use so many chemical.
The logo itself icon is about the honey and the brand name itself sweethoney, and the
slogan “fresh from the nest”
S weetH oney
Fresh fromthenest

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