2. Creating Demand Pertemuan 8 Matakuliah: J0114/Manajemen Pemasaran Tahun: 2008

3. Bina Nusantara Learning Outcomes Students are capable of choosing concepts to create demand

4. Bina Nusantara Material Outline Extension of current products Horizontal concept Vertical concept Adopt 100 percent Adjusted to local market's condition

5. Bina Nusantara Extension of Current Products A company that has existed for a long time generally has already had its own loyal consumers. New demand can be created by presenting a new concept (Nelly Ma’arif, 2008)

6. Bina Nusantara Horizontal Concept Using this model by using different technical specifications or different models and designs. Ford Car. –Launched its first car with one color –Competition forced this company to create other color than just black.

7. Bina Nusantara Vertical Concept For consumer products, the concept works out by adding additional pack sizes to the currently available ones. Blue band margarine of lever brother started with o.5kg and 1kg sizes. There are consumers that either need less margarine in their homes or supply have less money to spend on margarines.

8. Bina Nusantara Adopt 100Percent Many multinational companies practice concepts from other areas/countries What happened to cultural differences? –Maggie Block is a concept from the European market exported to Indonesia. –How do Indonesians consume soup?

9. Bina Nusantara Adjusted to Local Market’s Condition External source of demand creation: –Comes from the concept of joint cooperation. Concept of joint cooperation: –A good understanding and analysis of the advantages of having such a cooperation Buying from the experts: –Producers of certain products produce more than they need. –Ex. Pertamina

10. Bina Nusantara Adjusted to Local Market’s Condition Imitation concept of competitors: –If one concept is well accepted by market and creates good revenue and profit, many investors would be interested in the concept. –The existence of many night-clubs in one concentrated area, or the availability of several barbershops or beauty salons in an area

11. Bina Nusantara Adopt 100 Percent –Cars sold in four seasons countries designed differently than those for two season countries –Production in Asian countries is cheaper and what more important is the manufacturer sells cars that are suitable with the local conditions.

12. Bina Nusantara Conclusions: Using this model by using different technical specifications or different models and designs. For consumer products, the concept works out by adding additional pack sizes to the currently available ones. Many multinational companies practice concepts from other areas/countries External source of demand creation: –Comes from the concept of joint cooperation. Concept of joint cooperation: –A good understanding and analysis of the advantages of having such a cooperation Buying from the experts: –Producers of certain products produce more than they need. –Ex. Pertamina