No. 38 Marketing Revolution Resulting from the Government of Japan's Basic Resident Registration Law Amendment [Part 2] (December 25, 2006)

In last months column, Marketing Revolution Resulting from the Government of Japans Basic Resident Registration Law Amendment [Part 1], we discussed the impact of this amendment on companies that rely on direct mail and the use of the Web as a strategy to cope with those changes.

To use the Web as a new marketing channel in place of direct mail it is essential that you change the focus of your strategies depending on the extent to which your users・needs are clearly known.

In Part 1, we explained what to do 的f the user has an obvious need・ In this column we will discuss what to do when the user needs are not obvious.

If the user has no obvious need: Stimulating user needs through cross-media promotions

Companies that previously used direct mail to stimulate demand will now have to stir up needs of potential customers by using promotion strategies that cross media channels.

Direct mail was good at pinpointing and stimulating specific potential customer markets, but without direct mail now companies will need to find a form of media where users group together in such a segmented fashion.

What your company needs to do is to find a type of media in which users are segmented by age, region, and gender, as was the case with the Basic Resident Registration. Whether it is on the Web or not, you should choose the media that will be optimal for your needs, taking into consideration local newspapers, company flyers, and other publications, and then find ways through that media to lead customers to your website, store, or call center.

There will be times when your company already has the optimum media and times when it doesn't.

Using other companys media:

If the optimum media in which target users are segmented already exists, you can place an advertisement in or otherwise partner with this media. From the media company's perspective, the Basic Resident Registration Law Amendment has created business opportunities.

In order to make this type of relationship work, it is important to verify the impact of such media. Surprisingly, the effectiveness of many forms of media is often not verified, so the key will be determining whether visiting users are the types the advertising provider expected and whether the advertising is having the predicted impact.

Creating your own media:

On the other hand, sometimes there is no media optimally suited to your company's business. In such cases, you can consider creating your own media.

The Internet is very useful in these situations. By taking advantage of the fact that you have your own media, you can fight for your company's survival.

One company that has been extremely effective in using this point to their advantage is Benesse's Women's Park・(Japanese only). Women's Park is a membership site geared for mothers that facilitates various forms of communication by mothers, which serves to elicit the needs of its users related to child-raising, education, and other areas of interest, which in turn leads to increased awareness and/or purchase of Benesse's products.

Naturally, just because user needs are elicited does not necessarily mean a direct impact on your company's sales. However, you cannot sell something when there is no need. What is more, eliciting user demand and then taking actions to capitalize on that demand can broadly increase your chances of acquiring new customers.