Summary of marketing models in e-commerce industries such as Alibaba, JD.com, and Meituan

The past two or three years have been an interesting and important period for me as a product manager, because during this period, in addition to working on functions, I have been more exposed to the business itself, and our corresponding thinking models will be different when we make products from the beginning and perspective of the business.

I reread Hopkins's "Scientific Advertising" some time ago. Who is Hopkins?

Even students who have not studied advertising may have some understanding of "Ogilvy & Mather Advertising". Those who are a little more familiar may know that the "Father of Modern Advertising" is the founder of Ogilvy & Mather Advertising - David Ogilvy; and David Ogilvy's master is "Hopkins".

For the first time, Hopkins pulled the advertising profession from a wild state into a regular army, which was also the original intention of writing "Scientific Advertising". Students who work in operations or marketing may be very familiar with "new product trials" and "coupons", and according to historical records, these are also inventions of Hopkins.

After working for a long time, whether as a product manager or working in other industries, we will often talk about routines. In fact, "routine" is just a high-level summary of the work we do. Some books have already helped to summarize it, and some things that "go beyond the poem" actually require you to "understand" them yourself.

Although "Scientific Advertising" talks about the advertising industry and advertising strategies, many of the marketing ideas in it are still relevant today. According to Hopkins's career beginning at the age of 41, these theories were probably summarized in the 1920s, during the First World War. 100 years later, it is still thought-provoking.

Similarly, in the entire marketing industry and marketing history, "marketing model" is also a tool that is mentioned and used frequently. However, this seemingly mysterious and abstract thing is just like Hopkins' scientific advertising concept. Although it has undergone the infiltration and transformation of the times, its essence has not actually changed.

1. American advertising expert ES Lewis: AIDMA rule

The AIDMA rule was first proposed by American advertising expert ES Lewis in 1898. The meaning of the AIDMA rule is: A (Attention) attracts attention, I (Interest) generates interest, D (Desire) cultivates desire, M (Memory) forms memory, and A (Action) promotes action.

The so-called AIDMA rule refers to a rule that dynamically guides consumers' psychological processes and patterns their sequence from the time they see an advertisement to the time they make a purchase.

The process is that first, consumers notice (attention) the advertisement, then they become interested (in-terest) and continue reading, then they have a desire (desire) to buy it and try it out, then they remember (memory) the content of the advertisement and finally take purchasing action (action).

2. Dentsu: AISAS model

The AISAS model is a new consumer behavior analysis model proposed by Dentsu in response to changes in consumer lifestyles in the era of the Internet and wireless applications.

The marketing method has gradually shifted from the traditional AIDMA marketing rules (Attention, Interest, Desire, Memory, Action) to the AISAS (Attention, Interest, Search, Action, Share) model with network characteristics.

In the new marketing rules, the emergence of two "s" with network characteristics - search and share - points out the importance of search and share in the Internet era, rather than blindly instilling one-way concepts to users. This fully reflects the impact and changes of the Internet on people's lifestyles and consumption behaviors.

The ISMAS model was proposed by Professor Liu Dehuan of Peking University. It is an improved model for the traditional theoretical model based on the changes in people's lifestyles in the era of mobile Internet (especially the enhancement of user initiative), namely: Interest, Search, Mouth, Action and Share.

3. Consumer Behavior Model in the Social Media Era: SIPS Model

In 2011, Dentsu of Japan proposed the consumer behavior model in the social media era (Sympathize-Identify-Participate-Share&Spread, referred to as the SIPS model), which divides consumer consumption behavior into four stages: Sympathize, Identify, Participate, and Share&Spread.

This model deeply analyzes the development and changes of consumer behavior in the new era, and provides companies with a framework that is more suitable for social media marketing creativity, consumer behavior analysis and communication effectiveness evaluation.

4. Meituan: A new marketing model based on lifestyle: LIIS (Lifestyle-Identify-Interaction-Share)

Meituan’s marketing model has two major differences: one is the emphasis on big data, and the other is the emphasis on the interaction between people and merchants.

But the logic is easy to understand: through online and offline contacts, we obtain the user's identity information, and in turn we can better recommend content that is highly matched with the user to consumers, and users can "share" at any point in the entire process, thus keeping the entire process cyclical.

5. Alibaba: AIPL+FAST+GROW

AIPL: Segmenting brand audiences and quantifying audience assets are the most important parts of a brand's omni-channel marketing. AIPL stands for:

• A (Awereness): People who are aware of the brand, mainly those who have been exposed to brand advertisements, browsed pages, and searched for category terms;
• I (Interest): People who are interested in brands, mainly those who click on brand ads, browse brand homepages/store homepages, participate in brand interactions, browse product detail pages, search for brand terms, subscribe/follow/join, and add to cart collections;
• P (purchase): the number of people who purchase the brand;
• L (Loyalty): Brand loyal people, those who make repeat purchases, leave comments, and share.

1. FAST

The FAST indicator is mainly composed of four parts, namely the total number of people in consumer assets (F), the deepening rate (A), that is, the conversion rate of consumers from cognition, to interest, to purchase, and becoming loyal users at each stage; the number of super users (S) refers to consumers with high net worth, high value and high communication power for the brand, such as brand members and super user activity (T).

These four indicators not only assess the quantity (F and S) of consumer assets, but also the quality (A and T) of consumer assets. The FAST indicator system can more accurately measure the efficiency of brand marketing operations. At the same time, FAST also shifts the perspective of brand operations from temporary GMV to the healthy and long-term maintenance of brand value.

2. F (Fertility)

Number of operational population - active consumers: This indicator mainly helps brands understand their total operational population.

First, use the GMV prediction algorithm to estimate the total consumer gap of the brand. Then, optimize the marketing budget investment based on the gap, use multiple channels inside and outside the site to promote new customers, expand consumer assets for the brand, and guide the brand in future product planning and market expansion to expand consumers in multiple ways.

3. A (Advancing)

Crowd conversion power - weekly relationship deepening rate: Improve consumer activity in multiple scenarios, promote positive flow of crowd links, further screen high-quality crowds after the crowds are accumulated through multiple channels, reach them through advertising channels, accumulate crowd segments within the brand, conduct tiered operations on consumers, and differentiate marketing to promote the overall flow and conversion of consumers.

4. S (Superiority)

Total number of high-value people - total number of members: The members/fans are of great value to the brand and can provide amazing explosive power for brand promotions. Through online and offline linkage, joint brand marketing, and the use of new retail scenarios such as Tmall U-first, Taobao Easter eggs, and smart mother and baby rooms, the brand membership/fan scale can be expanded, laying the foundation for subsequent membership/fan operations.

5. T (Thriving)

Activeness of high-value groups - member activity rate: With the help of big promotions, the activity of members/fans is improved, the potential value of members/fans is stimulated, and support is provided for the completion of brand GMV goals. Members/fans are operated in layers according to RFM indicators, activation efficiency is optimized, and punishment is reached for each person with a thousand rights, combining public and private domains to empower member/fan operations.

GROW should be an eternal topic for marketers, especially in the stock era when the Internet traffic dividend has peaked, growth has become increasingly difficult. The difficulties usually lie in three areas: failure to find directions to help category growth, lack of clear levers for brand growth, and low brand growth efficiency.

Therefore, Alibaba, which is now positioned as a business operating system, has proposed a growth "dashboard" for the FMCG industry, the GROW model, which is applicable to several major first-level products such as maternal and child products, food, household cleaning products, cosmetics, medical care, and personal care. The four words in GROW represent the "decision-making factors" that affect category growth:

• Gain: refers to the contribution of consumers buying more categories/products to the brand's total growth opportunities;
• Retain: refers to the contribution of consumers’ more frequent/repeated purchases to the brand’s total growth opportunities;
• Price power (Boost): refers to the contribution of consumers’ purchase of price-upgraded products to the brand’s total growth opportunities;
• Widen: refers to the total growth opportunities that a brand can contribute by providing other related products outside of its existing categories.

in:

• The category penetration of the maternal and infant industry is significantly higher than other factors;
• The repurchase opportunities of food and household cleaning products are outstanding;
• The beauty and pharmaceutical and healthcare industries have the greatest opportunities for price power;
• The personal care industry has even growth opportunities in all aspects, with slightly higher penetration opportunities;

6. JD.com: 4A Model of Marketing 360 System

4A Model:

• Awesome: JD booth (Juxiao), JD direct investment (dsp), offline advertising, contract placement;
• Attraction (Appeal): JD booth (Juxiao), JD direct investment (dsp), offline advertising, contract placement, JD tasks, and JD pickers;
• Actions: Search for product features, activity links, shopping touchpoint ads, JD Express, and store search;
• Advocate: Shopping cart touch point advertising, fission advertising, interactive communication;

VII. Conclusion

1. Looking at the development and changes of the entire marketing model, the core change before and after the emergence of new media is not only to promote user "transactions", but also "sharing" is the consistent focus afterwards;
2. The importance of brand is self-evident, but in reality, not all companies pay attention to brand positioning and publicity, which are the first steps to reach users. Of course, with the changes since the epidemic, brand awareness may also occur in the stage of communication. This change in order is very worth pondering and paying attention to.
3. Big data is not just talk, but there is actually a long way to go in terms of data collection and data construction for big data;
4. Different companies attach different importance to "people", "goods" and "places": Alibaba has a strong foundation of data accumulation, so although the marketing design given to people seems more complicated, it is definitely the most effective; and Alibaba also has a certain involvement in the level of goods; Meituan and JD actually focus more on the dimension of "place", and Meituan is better between the two; goods seem to be something that no one deliberately mentions, because after all, each company is positioned as a platform, or planned as a large channel, but the discussion of "goods" is inevitable;
5. Finally, we can see that although advertising companies and e-commerce platforms are iterating in marketing theory, the difference between theorists and practitioners is also immediate.

Author: FatBoy

Source: Night Monster