INDIVIDUAL PAPER ASSIGNMENT

CASE STUDY: INNOVATION MARKETING STRATEGY OF GOOGLE

Created by:
Cila Dwi Aninda / 2140051470

MKTG8013 – Marketing Management in Digital Area

Student of Business Management

BINUS Business School

I. EXECUTIVE SUMMARY
 Google is the one of the platforms that is used by people to search for
information or any kind of form other than the information they need with new and
creative thinking modes. A business or company that sells their goods or services is
none other than through Google by only entering related keywords into the search. In
fact, every company with the primary interest that sells several products to be placed
in the leading position in this search. In this way, Google can help many businesses
both small and large offer ideas about business and even entrepreneurship.
As one of the fastest growing and developing technology companies in the
world and its culture and subculture makes Google a special case for consideration by
others. There aren’t many technology companies that reach growth rates like Google.
With the start of the creation of a search engine developed by Larry Page to search
engines on the web developed by Sergey Brin. Google’s legacy comes from various
efforts and innovative company in making a number of websites that have reached as
many as 25 billion websites that are ready to be used by its users. By completing the
needs of its users, such as creating PDF, PostScript files, documents, as well as
Microsoft Bing, Lotus, PowerPoint, and Shockwave files. Google has reached its
access level by more than 50% of countries outside the United States, where the
company was first developed. In addition, with 380 million users and 28 billion visits
every month (Desjardins, 2017).
Google also has the opportunity through potential advertisements that are used
by users and some businesses that place in seconds. These online advertisements also
occupy 70% of the market dominating the market compared to other competitors,
such as Yahoo (Tricahyadinata, 2017). With Google’s mission, users are expected to
save information that is useful, lively and useful.

II. COMPANY OVERVIEW

1
 Google is a multinational technology company engaged in services and
products related to the internet. Google was founded by Larry Page and Sergery Brind
as a private company in 1998, where the initial approach was first developed when
they were Ph.D. at Standford University, California (Mehra, 2011).
In 2004, Google’s headquarters moved to Mountain View, California. In 2015,
Google reorganized its company through a leading company, Alphabet Inc. and also
appointed Sundar Pichai as CEO of Google to replace Larry Page who became CEO
of Alphabet. The vision of Google is to create a powerful search engine that can make
people understand the world. While the mission of Google is "To share world
information and be universally accessible". At present, Google has offices in about 14
states and also in about 36 different countries around the world, such as Australia,
China, Denmark, Finland, India, Israel, Mexico, and the United Arab Emirates
(Google, 2009). However, Google was founded by having the function as the largest
search engine that has been recognized in the world. The services contained in Google
are free/free services that are very easy to use and are accessed by everyone. Just by
typing the domain provided by google/www.google.com, everyone can search for
information they want to know in various languages, such as web search, search,
image, product search to blog, online translation, etc. (Kuntze and Matulich , 2008).
Google can also be used through a variety of wireless platforms, others
including such as WAP and i-mode telephones. This company also offers a variety of
good and interesting content for users by determining the website.
Interestingly, Google services open up opportunities for online advertisers
who are looking for sponsored and cost-effective ad space. As a business, Google also
sells ad space on its pages through the program, AdWords. In Adwords, the types of
advertisements offered are in the form of small text-based boxes found in search
results on Google. In addition, Google also provides an advertising program that is
AdSense, the type of ads offered is in the form of advertisements that are targeted to
the relevant content in accordance with the content of this site and this ad generates a
profit on the website publisher each user clicks on the ad link.

II.1 Products

2
 Google has variety of different types of products that offer easy services to
access information on various things. The types of products include Earth; Chrome
Picasa; Visigami; SketchUp; Talk; Gmail; Google News; Google Mobilizer; iGoogle;
Google Reader; Google Latitude; Google Maps; Google Talk; Google Sync; Ad
Sense; iGoogle; Orkut; Knol; Google Mini; Google Trends; Google health; Google
Mobilizer; Google double click; Google FeedBurner; Google Gadgets; and Google
Profiles (Darkwah, 2017).

III. MARKETING STRATEGY

3
 III.1 Segmentation, Targeting, and Positioning
a) Segmentation and Targeting
Google Company
 Offering products that appeal to market segments.
 Prioritizing target markets around the world.
Google Advertising
 Target advisers, which mostly market frequent the internet until worldwide
level.
b) Positioning
Google Company
 Innovative.
 Socially responsible.
 As fast networks and deep knowledge.
Google Advertising
 Advertiser-friendly.
 Credible and useful advertising.

III.2 Differentiation Strategy

a) Porter’s Model
Rivalry among existing firms: Strong
In this context, strength in competition plays an important role for Google in
running its business. Sometimes, companies that provide search engine services
produce a bad search experience (Dudovski, 2017).
Threat of new entrants: Moderate
It’s easy for a new company to compete as a technology company with Google
because the initial costs needed for this kind of business are not too high (Dudovski,
2017).
Bargaining power of suppliers: Weak
Google is a major buyer for many other companies and a large number of
suppliers to choose from (Dudovski, 2017).
Bargaining power of buyers: Weak to moderate
Strength on buyers is weak if user demand increases, but there are only a few
users. Users can switch to other companies that provide the same services as Google
at lower prices (Steve, 2011).

4
 Threat of substitute products/services: Moderate
The threat of replacing Google Search is increasingly apparent, some of which
are Baidu, Yandex, and so on.
Based on the Porter’s Model, the strategy used by Google in its company is
differentiation from a very broad market. The uniqueness of the product that is owned
by Google is the company’s ability to create a competitive business, which is one of
the strategies of differentiation. There is no big supplier that offers the exact same
product as Google, so this company is always in a strong position (Siohong, Sean and
Juni, 2008). The products offered by Google for almost everyone around the world
are achieved because Google is an innovative company. From time to time, Google
has displayed its development with product variations. The uniqueness is the main
key for Google to always develop its innovation in order to maintain its competitive
advantage. This can be done by creating new products or continuing to develop
existing products to continue to face challenges in competing with other companies
engaged in technology, such as Google.

b) Intensive Growth
Google is a company based in the United States, which already has a strong
leadership position. This company is in need of market penetration for its growth, as
in China, the company competes with companies offering services, such as Google or
other global online companies. In the United States, Google uses an intensive market
development strategy in offering one of its products, Google Fiber, to be used in many
countries. In addition, Google also continues to develop new products, such as Google
Glasses, which are implemented through product development strategies. This
strategy also affects Google’s revenue as a company engaged in technology. The
benefits are based on innovative levels in manufacturing and developing products.

III.3 Direct Distribution and Competitive Strategy

The direct distribution strategy used by Google is marketing that involves a
direct relationship between producers and consumers. In addition, Google also
competes with its competitive advantage, especially as technology organization that
has superior infrastructure. In 2008, Google also had the advantage of the amount of
data it had, which was around 36 data centers in use today and for the future. Both of
these advantages always increase every year. As a powerful search engine, Google
also competes with Microsoft Bing and Yahoo. In 2012, the two companies held a
market share of around 16% and 13% respectively. Furthermore, Google won
products and services that cover the entire world. The company encourages staff to
always innovate with their ideas so that in every formation and development of their
products are always valuable and attractive to consumers.

5
IV. SWOT ANALYSIS
Strengths
1. The Largest Search Engine Organization

6
 Google has the greatest strength as a search engine service that has led the
market throughout the world. With fast and reliable service. Google has around 65%
market share for internet search with a number of competitors who have never
approached the market position on Google.
2. Strong Brand Image
Google has the ability to direct users to use existing services in the context of
the internet, which is also a matter that helps Google become one of the best-selling
brands in the business world. With an advantage of around more than 1.2 billion per
month users of this site, although marketing is not too much because of the publicity
that occurs naturally from one user to another user.
3. Digital Advertising Revenue
In 2019, Google gets huge revenue of around 79% (Pratap, 2020) through
successful corporate partnerships from online advertising and also with various parties
concerned, this is both in terms of top-line and bottom-line.
4. Adoption on Mobile Technology
Google has adopted Android and Mobile technology, which is where most
users can use the device.

Weaknesses
1. Privacy Concerns
Google has never revealed internet search formulas. However, Google has
improved this with a more unique search engine strategy.
2. Decreasing Ad Rates
In 2013, Google experienced a decline in advertising tariff results due to the
global economic slowdown. Thus, making the company's profitability fall.
3. Excessive Use of Advertising
Google is a well-known business that relies heavily on advertising. It has been
proven that around 85% of revenue on Google comes from advertising. So if profits
on advertising are reduced then revenue on Google tends to decrease too.

Opportunities
1. Operating the Android System

7
 The Android system used by Google is the biggest opportunity for companies
to become competitors for Apple or Samsung
2. Diversification of Business Models with Non-Advertising Models
Diversification must be the courage for a company to become a non-
advertising but profitable business. This was driven by several Google sites, such as
Google Books, Google Maps, and others.
3. Google Glasses, Google Play, and Cloud Computing
Google Glasses, Google Play, and Cloud Computing are also components of
opportunities that can be utilized for Google, by adding users to use the site the
company’s revenue will increase.

Threats
1. Tough Competition
Globalization makes companies threatened by the existence of another site,
such as Facebook and Twitter which has quite a number of users. So companies must
stay updated to attract the attention of people to faithfully enjoy Google services.
2. Regulatory Threats
The threat of regulation is sure to occur for the rapid growth of technology
such as Google. Some of the big challenges related to regulations that have become a
threat to this company are the issue of anti-monopoly, anti-competition, and also the
monopoly of companies in the internet world.

V. MARKETING MIX
Product
8
 As a technology company that has a well-known brand image in product
development, here are a few well-known Google products:
1. Search engine: Search engines are the most likely things that come to mind for
their users when using Google. This is one of the advantages that the company
has over its main product (Heart of Codes, 2018).
2. Google AdSense: This product is an ad network that is published for some
online publishers. The AdSense program is a platform that provides space to
fill ads on Google. So around 90% of the profits obtained by the company
come from the AdSense (Belyh, 2015).
3. YouTube: YouTube is one of the largest online video streaming services
always used by people in the world. This type of product does not require any
introduction to Google. Google also benefits from YouTube because it is
widely accessed by people around the world.
4. Google Pixel: This product is one of Google’s products in the form of devices
and is considered as a potential competitor for Apple and Samsung.

Price
1. Free and premium prices: Google sets prices on most of its products,
especially on free price search engines. Only for certain features the user is
subject to extra payment, such as additional storage space (above 20GB of
storage space) for Gmail or to get access to unlimited songs on Google Play
(Oberstein, 2016).
2. Market-based prices: Google places its products at market-based prices based
on market conditions, competitors, and others, such as one of its Google Pixel
products.
3. Penetration pricing: Google sets penetration pricing on certain products,
which on Google Fiber Internet and cable television services to compete with
Comcast.
4. Value-based Pricing: Google sets value-based pricing for its online
advertising service, Google AdWords (Friesner, 2014).

Place
Google is a company that offers a wide variety of solutions through its
products based online and offline promotion. On Google-owned device products, the
company promotes them through retailers and online channels. However, the offline
channel allows companies to reach even greater user targets.

Promotion

9
 Promotions by companies to reach their best-selling level are minimal
promotions through several online advertisements, TV commercial mixes, and offline
promotions. The company has achieved a high level of dominance and popularity
throughout the world.

VI. RECOMMENDATION

10
 The strategy of differentiation and intensive growth has built Google in the
dominant position of the global market which has earned the company’s reputation.
However, this has made the company criticized for being too focused on product
development in the field of technology.
Ethical issues are the main things that must be considered by Google. Google
must implement a concern for its users by using a responsible approach to human
rights. Google also had experienced problems related to some of its products, such as
Google’s online map service and Street View, where there is an assumption that the
company took pictures of private homes and other people’s property. In addition to
these problems, the Google search engine is believed that it requires data entry if the
user accesses it. Thus, Google must guarantee to protect all privacy or data owned by
users to keep it safe as it should.
Furthermore, Google also has another problem which is related to the
communication strategy and the price of the company’s partnership with online
customers and advertisers. The policies applied to advertising are not very clear s, so
it makes it difficult for marketers to estimate how much advertising costs they should
pay, and also where their ad positions are placed. Moreover, the great concept in a
company is that advertisers must also know the price of their advertisements. Google
must be able to increase its market share by increasing relationships and
understanding of advertising clients. Google must ensure profitability on every
product they want to develop before entering a new business (Thompson, 2019).

VII. CONCLUSION

11
 Marketing strategy is the main factor that important for a company in
establishing relationships with customers and the wider community in the business
world. Brand equity is formed from how companies market their own brands so the
company’s image is known by the market and customers. Google is one of the
successful companies in the world that is engaged in technology. The services
produced by Google include large products, which serve the needs of the general
public/the public at large throughout the world from aspects of web development to
business. Quality and price are the number one key to success from Google. With
products that are not only of good quality, but also affordable and easily accessible.
From these points, Google’s brand image is formed for its users as a company with
effective marketing.
Although there were a number of problems faced by Google, it didn’t make
the company collapse because there were no competitors who had a level of
advantage with Google. However, to improve the company’s strategy better, Google
must review its position regarding customer ethical and advertising issues. This
increase will be seen by the efficient organizational changes in business, especially in
the relationship of cooperation and trust. Thus, Google has the opportunity to increase
success in maintaining its brand equity in the long run.

12
References
Belyh, Anastasia. 2015. How Google Found Out It Should Be Doing Advertising.
Retrieved March 27, 2020 https://www.cleverism.com/how-google-found-out-doing-
advertising/.
Darkwah, Kwaku. 2017. Google’s Business Strategy: An Empirical Analysis of the
Strengths; Weaknesses; Opportunities; and Threats (SWOT) of Google Google’s Business
Strategy: 4.
Desjardins, Jeff. 2017. 100 Websites that Rule the Internet. Retrieved March 26, 2020,
http://www.businessinsider.com/top-100-websites-web-traffic-2017-3.
Dudovski, John. 2017. Google Porter’s Five Forces Analysis. Retrieved March 26,
2020, https://research-methodology.net/google-porters-five-forces-analysis/.
Friesner, Tim. 2014. Google Marketing Mix. Retrieved March 26, 2020,
http://www.marketingteacher.com/google-marketing-mix/.
Heart of Codes. 2018. Marketing Mix of Google: Google’s 4P’s of Marketing Mix.
Retrieved March 26, 2020, http://heartofcodes.com/marketing-mix-of-google/
Kuntze, Ronald and Matulich, Erika. 2008. Google: Searching for Value. Journal of
Case Research in Business and Economics.
Mehra, Bhanu. 2011. Google Company Overview: 1. Retrieved March 26, 2020,
https://www.scribd.com/document/54983661/Google-Company-Overview.
Oberstein, Mordy. 2016. What Are Google’s Marketing Strategies. Retrieved March
27, 2020 https://www.rankranger.com/blog/google-marketing-strategy.
Pratap, Abhijeet. 2020. Strengths and Weaknesses of Google: A SWOT Google
Analysis. Retrieved March 27, 2020 https://notesmatic.com/2020/01/strengths-and-
weaknesses-of-google-a-swot-analysis/.
Steve, Richardson. 2011. Google Marketing Analysis. Retrieved March 26, 2020,
https://www.grin.com/document/214303.
Siohong, Tih., Sean, Ennis and Juni, Poon. 2008. Attitute Towards Online Retailing
Services: A Comparison of Student and Non-Student Sample. Asian Academy of
Management Journal, Vol. 13, No. 1: 113-126.
Thompson, Andrew. 2019. Google’s Generic Strategy (Porter’s) and Intensive
Growth Strategies. Retrieved March 28, 2020 http://panmore.com/google-generic-strategy-
intensive-growth-strategies.
Tricahyadinata, Irsan. 2017. An Analysis on the Use of Google AdWords to Increase
E-Commerce Sales: 64-66.

13