Mobile Marketing Management: Case Studies from Successful Practices

459 Pages·74.625 MB·English

by  Hongbing Hua

MOBILE MARKETING
MANAGEMENT
Case Studies from
Successful Practices
I
v
v
MOBILE MARKETING
MANAGEMENT
Case Studies from
Successful Practices
HONGBING HUA
A PRODUCTIVITY PRESS BOOK III
Project Director: Qin Lide
Project Coordinator: Zhang Kun
nt
e
m
e
g
a
n
a First edition published in 2019
M
g by Routledge/Productivity Press
n 52 Vanderbilt Avenue, 11th Floor New York, NY 10017
eti 2 Park Square, Milton Park, Abingdon, Oxon OX14 4RN, UK
k
r
a
M
e © 2019 by Hongbing Hua
bil
o
M Routledge/Productivity Press is an imprint of Taylor & Francis Group, an Informa business
No claim to original U.S. Government works
Printed on acid-free paper
International Standard Book Number-13: 978-0-367-14246-9 (Hardback)
International Standard Book Number-13: 978-0-367-14105-9 (Paperback)
International Standard Book Number-13: 978-0-429-03087-1 (eBook)
This book contains information obtained from authentic and highly regarded sources. Reasonable
efforts have been made to publish reliable data and information, but the author and publisher
cannot assume responsibility for the validity of all materials or the consequences of their use. The
authors and publishers have attempted to trace the copyright holders of all material reproduced
in this publication and apologize to copyright holders if permission to publish in this form has not
been obtained. If any copyright material has not been acknowledged please write and let us know
so we may rectify in any future reprint.
Except as permitted under U.S. Copyright Law, no part of this book may be reprinted, reproduced,
transmitted, or utilized in any form by any electronic, mechanical, or other means, now known or
hereafter invented, including photocopying, microfilming, and recording, or in any information
storage or retrieval system, without written permission from the publishers.
For permission to photocopy or use material electronically from this work, please access www.
copyright.com (http://www.copyright.com/) or contact the Copyright Clearance Center, Inc.
(CCC), 222 Rosewood Drive, Danvers, MA 01923, 978-750-8400. CCC is a not-for-profit organiza-
tion that provides licenses and registration for a variety of users. For organizations that have been
granted a photocopy license by the CCC, a separate system of payment has been arranged.
Trademark Notice: Product or corporate names may be trademarks or registered trademarks, and
are used only for identification and explanation without intent to infringe.
Library of Congress Cataloging‑in‑Publication Data
Names: Hua, Hongbing, author.
Title: Mobile marketing management : case studies from successful practices /
Hongbing Hua.
Description: New York, NY : Routledge, 2019. |
Identifiers: LCCN 2018048377 (print) | LCCN 2018050700 (ebook) | ISBN
9780429030871 (e-Book) | ISBN 9780367141059 (pbk. : alk. paper) | ISBN
9780367142469 (hardback : alk. paper)
Subjects: LCSH: Internet marketing--Management. | Mobile commerce.
Classification: LCC HF5415.1265 (ebook) | LCC HF5415.1265 .H83 2019 (print) |
DDC 658.8/72--dc23
LC record available at https://lccn.loc.gov/2018048377
IV
Visit the Taylor & Francis Web site at
http://www.taylorandfrancis.com
P
r
e
fa
c
e
Preface
　　It has been only 50 years since humanity entered the information society, and it
was the Industrial Revolution that took humanity from the Agricultural Age into the In-
dustrial Age in the past 400 years. Both in the industrial society and in the information
society, enterprises and markets have been the main drivers of economic growth. What,
then, is the driver that lies behind enterprises and markets?
　　The knowledge that takes enterprises as its subject study is referred to as Enterprise
Management, while the knowledge that studies markets is referred to as Marketing.
　　The three most influential books in the past century are Peter F. Drucker’s The
Practice of Management, Philip Kotler’s Marketing Management, and Jack Trout’s
P ositioning. Drucker is revered as “The Father of Modern Management”, while Kotler is
known as “The Father of Modern Marketing”, and Trout was called “The Father of Posi-
tioning”. These three “godfathers” are all from the U.S. This is not surprising given that
the U.S. has been not only the locomotive of the global economy in the past century, but
also the testbed for market and management innovation.
　　Let’s first talk about Drucker, the Father of Modern Management. In 1954,
he proposed the epoch-making concept of Management by Objective (“MBO”).
This is one of the most important and most influential concepts invented by Drucker.
One of the influences of this concept is the separation of management from economics,
metrology, and behavioral sciences to become an independent discipline for research in
colleges and universities. The schools of business administration established by colleges
and universities are the result of Drucker’s efforts. Successors of Drucker, including Tom
V
Peters, Champy, Hamel, Collins, and even Kenichi Ohmae from Japan have emerged in
succession within management circles; however, it was only after Drucker passed away
in 2005 that people discovered there would be no new Drucker. Wu Xiaobo, a Chinese
nt scholar, asked, “Who will be the next one to reflect on the management for us after he
e
m has gone?”.
e
g 　　Next is Kotler, the Father of Modern Marketing. Before him, market man-
a
an agement comprised the marketing mix of the 4Ps (product, price, place, and
M
g promotion). Kotler has expanded the concept of marketing from the mere sales work
etin in the past to the more comprehensive communication and exchange processes, and
k even national marketing. His Marketing Management, which is regarded by marketers
r
a
M in 58 countries as the “Bible of Marketing”, has become the most widely used marketing
e
bil textbook worldwide. The greatest contribution of this book, now in its 15th edition, is
Mo turning marketing into a science and an independent research discipline in colleges and
universities.
　　Third is Trout, the Father of Positioning. In 1969, Jack Trout was the first to
introduce positioning, and in 1981 he published his academic monograph Posi-
tioning. The Positioning Theory was rated as “the most influential idea affecting Amer-
ican marketing in the history” by the American Marketing Association in 2001, pre-
vailing over the theories of both Philip Kotler and Michael Porter. Trout was praised by
Morgan Stanley as a better strategist than Michael Porter, and revered as “The Father of
Positioning”. The key breakthrough of the Positioning Theory is the concept that enter-
prises have only two tasks: the first is to find a decisive “position” in the heads of users
outside of enterprises, and the second is to allocate all internal resources of enterprises
as oriented by this “position” to conduct operations management so as to create the best
operation results. Put simply, with the application of Positioning Theory, one could seize
the mental resources of customers and dominate over one’s competitors. The Positioning
Theory was the first theory to break through enterprise management boundaries: in the
past management was viewed internally, while the Positioning Theory stresses centering
on external view. This has changed the research methods of science of business adminis-
tration not only in the U.S. but across the whole world.
　　Despite the innovations in business administration theories, there has been no
masterpiece that could rival those of the three masters over the three decades since the
1980s. The main reason is that the basic economic structure of the industrial economic
society has not changed. We entered the mobile Internet era in 2012, and a new world
came into sight.
　　Connecting everything - The mobile era, holding the banner of “connecting every-
thing”, has completely broken down management boundaries. The organizations based
on traditional MBO have been replaced by self-propelled self-organizations, with each
self-organization connecting to others via mobile networks to generate a new combi-
nation form. Key performance indicator (KPI) assessment is failing, and the traditional
management is at a loss when confronted with this situation.
　　The Wooden Barrel Theory, for example, prevailed from 1980s to 2000. The vol-
ume of water a barrel can hold depends on its shortest plank. Likewise, the direction
of management is to find the shortest plank and extend it to a long one; however, the
shortest-plank principle did not work in the information economy era from 2000 to 2012,
and only the long-plank principle held true: it was not the mission of an organization
to extend the shortest plank because they could find a long plank directly. This is the
Anti-Barrel Theory of the information revolution.
　　Since 2012, the world has been in the mobile era which cannot be summarized
as an information era but an era where the 4.0 industrial revolution, which includes
VI
artificial intelligence (AI), life sciences and 3D printing, choruses with
mobile Internet. “Barrels” disappear, as every home has “tap water”,
and everyone accesses the Internet and connects via smartphones.
There is no need to find the shortest or the longest plank because the P
r
e
barrels themselves are no longer needed. Jack Ma said, “Young people fa
c
will not be able to find a job in another three decades.” This is possible e
because by then, robots will operate in factories, people will go to see
a doctor at intelligent big-data hospitals, and intelligent robots will
teach in schools; robots will farm in the countryside, intelligent robots
will babysit at home; not even packages will be sent by people, but are
directly delivered to your balcony by unmanned helicopters … Every
one of us should be thrilled to be a part of this trend! The sentence
which summarized the trend of the period of the planned economy was:
a year of famine does not starve a craftsman. The period of the market
economy time can be summarized as: only by doing business may you
become rich. The era of the sharing economy time may be character-
ized as: how many people you help equals how many people will help
you, and what matters from now on is big data, not oil or coal!
　　Fast iteration - The second banner held by the mobile Internet has
revolutionized the mass base of the Positioning Theory oriented by
competition. The Positioning Theory proposes to first build a mental
model in people’s minds and then launch new products, all of which is
a positioning process that takes some time to complete. However, in the
mobile era, “being fast” is the first; “transient advantage” is emphasized
above long-term advantage, industry boundaries become increasingly
blurred as the market changes are increasingly accelerating, crossover
ravagers emerge in an endless stream, and enterprises should not con-
tinue to depend on certain core competences to keep their single com-
petitive advantage. Instead, they should transform with changes, rapidly innovate, and
build successive transient advantage. The “decoring” of transient advantage leads to an
increasingly short time for enterprises to retain their core competences.
　　Users first - This is the third banner, fluttering in the sky of the mobile era. The
Marketing Theory of 4Ps born in the age of the industrial economy starts with products.
The mobile era, on the other hand, proposes a shift of the power center from “enterprise
products” to users. Users’ participation soars to unprecedented heights, and the theory
of serving users is deep in the minds of people.
　　China entered the mobile era in 2012 and is now a major country in the application
of mobile Internet technology. With a wealth of experience accumulated through trial
and error in the practices of mobile-DNA management innovations and market innova-
tions, it is the original intention of this Mobile Marketing Management (firstly published
in 2017 and secondly in 2018) to summarize such practical experience of enterprises,
and outline the market and management laws for the next 30 years. The mobile market-
ing management is one of the world’s toughest problems. Therefore, on publication this
book was termed the pioneering work of the mobile marketing management discipline
in China.
　　Before publishing Mobile Marketing Management, the author spent more than
ten years in creating seven reprints of one book entitled Mobile Internet Panoramic
Cogitation. He is at the forefront of the era, and has established that the basic attributes
of the mobile Internet are to be “people-oriented, evolutionary, and open”. Because of this
book, the author has been recognized as “The Founder of Mobile Internet Theories” in
VII
China. Over the past ten years, all his
books, which are not for sale, have been
donated to 1,200 libraries.
nt 　　In spring 2019, the English version
e
m of Mobile Marketing Management was
e
g published. It establishes the four pillars in
a
n the new marketing world: Service, Sub-
a
M
stance of content, Super user, and Space.
g
etin They are known in short as the “4S Theory”.
k 　　In light of “users first”, all products
r
a
M will be services, and the future market
e
bil competition will not be the competition
Mo of products, but the competition of the
productization of the service idea. In light
of failure of mass communication, the
competition among all services will be the
competition of substance differentiation;
in light of popularization of self-organi-
zations, the trend will be to develop markets through working with people (Super users)
instead of companies; and in light of blurred market boundaries, the ultimate task for
enterprises will be to optimize their own living space and evolve their own development
space.
　　Behind the 4S Theory are over 100 successful global cases taken from the past
ten years. Following the publication of the new book, its practical application has been
followed by a large number of micro, small and medium-sized enterprises, excluding
conservative academic lecturers and industry giant enterprises that are too big to turn
around. This might well be the natural law in the forest: it is difficult for humanity to
predict or completely extinguish forest fires. Each forest fire leaves in its wake the de-
struction of towering trees, and yet new seeds under these big trees or in the soil would
not obtain the nutrition necessary for growth and the chance of survival if the forest fire
did not naturally eliminate the big trees.
　　What is the correlation among science, art, philosophy, literature, economy, and
politics? They were independent disciplines mutually influencing but not directly cor-
relating with each other before the book Mobile Marketing Management was published.
However, the basic principles of the mobile marketing have promoted crossover cooper-
ation between the six disciplines. Each discipline has also had to separately establish its
own “transient advantage” with the help of the mobile marketing management. The mo-
bile application that “speed connects everything” has changed the construction period of
each discipline. The construction period of a discipline’s revolutionary results often took
decades. During the previous centuries, even more than a century. However, when the
mobile Internet enables the discipline specialties to horizontally correlate, professional
transient advantages of disciplines will be built in a short time, and the transient advan-
tage that is accumulated and evolved bit by bit will eventually become the revolutionary
results of each discipline.
　　Presently, the turning point for the Lazy Economy has come. Users prefer to “stay
at home” and shop via their cell phones. Such a consumer preference stimulates the
rapid development of the delivery business. The delivery business is making progress,
and the lazy become even lazier. All one needs is a cell phone installed with the “Taobao
Home Delivery” app. Users stay in the comfort of their own home and wait for their
home deliveries, which might range from fresh fruit, vegetables and flowers to medicines
VIII
and housekeeping services, anything you expect. In addition to third-party logistics
companies, the shop assistants of each terminal store serve both visiting and home cus-
tomers. Everybody is a courier. Users sit back and enjoy the fruits of such a developed
logistics network. All consumption is conducted on a mobile terminal. P
r
e
　　The turning point of SF-Express reminds us that the mobile marketing’s spring is fa
c
coming. On opening this book, you will find not only a strategy or tactic, but also a con- e
vincing system of mobile marketing. This book contains 107 knowledge points related to
marketing innovation and they form an all-new and convincing marketing system. The
spring for mobility, science and system has arrived.
　　The purpose of this book is to help readers to find out, summarize and apply the
pattern. As the second largest economy in the real world and the largest economy in
the mobile network world, China has rich experience and lessons in mobile marketing,
which will be beneficial to the scholars’ research.
　　The technological trend is good for those who understand it and bad for those who
ignore it. In January 2017, when Master, Google’s internet chess player, successively beat
61 grandmasters from China and other countries, and achieved an incredible perfor-
mance of 60 wins and one draw, people were suddenly enlightened and realized that the
era of artificial intelligence has arrived. In the past, artificial intelligence was something
we read about in scientific fiction or research literature as it had not been sufficiently
developed to catch our eye. Today, it has crossed that border and stepped into the arena.
Before we knew it, the chess game has become a competition between an intelligent ro-
bot and its assistant and another chess player and his intelligent robot assistant. How to
conduct cultural and sports marketing in the world of chess? Overnight, the marketing
society has found that even its objects of marketing are robots. Maybe the marketing so-
ciety itself will be replaced by intelligent robots. Who knows?
　　3D printing joins in the fun. The means of production has changed. Some life sci-
ence research argues that human beings can live up to the age of 500 years, provided
that the research and development (R&D) of new materials is highly optimistic, and aged
and decayed internal organs of human body can be replaced with 3D-printed organs
made of suitable materials. The train of the 4.0 Industry Revolution quickly
rumbles through the traditional marketing society, carrying away nothing but
the grievance of the latter.
　　New technologies, environments and tools are constantly emerging. The
90 million population of China’s marketing society needs to be redeemed and
the marketing textbooks of colleges need to be innovated. Students in class-
rooms shall absorb nourishment from new textbooks. When leaving school,
marketing students shall not be in the dark when it comes to marketing, as
you never fight your enemy who holds a machine gun while you only have a
spear in your hand.
　　Helical symbols appear throughout this book, carrying the meaning that
the development of everything follows a spiral ascending pattern. Human
brains and organs contain large quantities of helical structures, and the 4S
marketing theory is just like the helical brain of mobile marketing. In build-
ings, spiral stairs are space-saving and aesthetic, reminding us of the circu-
larly ascending reading logic in mobile marketing learning of each chapter of
this book.
　　Common twining plants are typical of the spiral form. A morning glory
with a series of trumpet flowers climbs clockwise around a rod, while a Perip-
loca calophylla grows upwards counterclockwise. Pine cone seeds and sun-
flower seeds grow in spirals along inversed patterns. We can see the spatial
IX