TEMPO.CO, Jakarta - Since 2003, US energy and technology giant, General Electric (GE), has entrusted its global marketing issues to Beth Comstock. As chief marketing officer (CMO), Comstock covers five continents to ensure their products not only reach but lead markets, thus putting the competition at bay. According to Comstock, 52, the key to their continued success is innovation. Some five percent of GE's revenues are flowed back product research and development.
"If innovation is good and differentiated, you win," she told Tempo recently.
For two decades, GE was without CMO until Comstock, who has a long history of industrial media and broadcasting, was 'discovered.' Her experiences include stints at the CBS, Turner and NBC Universal broadcasting companies, before joining GE.
In Indonesia, GE has had a presence for 70 years, specifically by supplying airline spare parts, locomotives, healthcare technology and building light-bulb factories. Last February, it made a commitment to invest US$300 million, disbursable over the next five years, to build training centers and the latest energy technology. "One important target investment is to build training and engineering centers in Indonesia," Comstock told Tempo.
In early May, Beth Comstock visited Indonesia for the first time, where she gave a lecture titled "Leading through Innovation" at the Young Indonesian Entrepreneurs Association (HIPMI) and Garuda Indonesia, with Tourism and Creative Industry Minister, Mari Elka Pangestu.
Before leaving Jakarta, she met with Tempo reporters Hermien Y. Kleden, Sadika Hamid, Dewi Rina and Wibisono Notodirjdo for a special interview. Excerpts:
On her purpose for visiting Indonesia
I should have come sooner, but Indonesia is definitely a priority market for GE. Our investments here are important, such as in aviation, energy and healthcare. For me, it's learning what is new for the company. What are markets that we need to understand better? So that is why I am here. We have been in Indonesia for 70 years, but there are a lot of new dynamics happening here.
On her marketing approach in Indonesia
You have such fast growth, needing a lot of infrastructure and a youth driven economy. We invest in resources. What we are doing in rural healthcare is a great example. Indonesia has the world's biggest population of midwives. We see what we can learn from the way midwives interact with pregnant mothers, the needs they have. We work with general practitioners and midwives to adapt to our technology.
On using social media as a marketing tool and the impact it has on GE's sales
We use it in two ways. One is to build a brand. GE is a technology company so we target a lot of people who are in the technology industry and tend to use social media. You can ask questions to a GE expert in Facebook. We also use social media to create communities with our customers and do innovation together.
I would not say it has scaled to the point where it has replaced something else, but definitely we are able to convert leads, we are able to find people and do amazing things. Most people think people are just looking for a refrigerator, but we have had people looking for jet engine parts and gas turbines. Very sophisticated business happens in social media.
On her lecture at HIPMI and Garuda about "Leading through innovation" and whether she thinks that good leadership goes hand in hand with successful marketing
I think so, but I'm not sure everyone thinks so. What we have been trying to do at GE is saying that there is a new way to think about marketing for business. It is about leading in markets, knowing what trends are, leadership and innovation. People find it unusual that a marketing person would talk about innovation, especially in a technology company. But I think you learn to have the courage of your convictions, because you cannot prove a trend, you cannot prove a market will take off. But you have a hunch. I think the one thing you have to learn about that kind of leadership is to have courage to go after ideas that are not quite clear yet.
She also spoke of why GE has not built more factories in Indonesia after being in the country for 70 years, and the challenges she faces in balancing marketing and GE's focus on technology innovation. She mentioned how GE is planning to help Garuda runs its airline better by using available data, which becomes one of several other things that preoccupy her time in handling GE's businesses.
The complete interview is available in this weeks' edition of Tempo English.
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