Definition Of Golden Circle and Its Application In Business

LECTURE NOTES CREDIT HOURS : 3 CREDIT SEMESTER/SESSION : 4th SEMESTER, 2022/2023 SESSION TOPIC : BUSINESS ORGANIZATION CHAPTER 1 – Definition Of Golden Circle and Its Application In Business A. Definition of Golden Circle Golden circle is a technique used to find the purpose of a business or brand. In addition to business, the golden circle can also be used to find personal goals and motivation. In business, the golden circle will help you discover what your customers want as well as the benefits and value you offer. The golden circle is depicted with 3 focused circles, with each circle representing a particular aspect of market differentiation. B. The Three Pillars of the Golden Circle Summarizing HMS, there are 3 pillars in the golden circle that need to be understood, among others: 1) What we do: What in the golden circle means the products or services offered by a business. This includes anything that is produced by the company. 2) How we do: in the golden circle, how is how a business makes products or services that suit the market and consumers. 3) Why we do: The main pillar of the golden circle is why, which explains the purpose, cause, and belief of a business. This is also the reason why a business exists, other than to make a profit. In the book Start With Why: How Great Leaders Inspire Everyone to Take Action, Simon Sinek explains that many start a business by making a product first, and then determine the purpose. However, according to Simon, it would be better to determine the purpose or "why" first in a business. After that, you can determine the "how" and "what" aspects of product creation. When you start a business by identifying its purpose first, this will encourage consumers to support the brand's goals. Then, the business will automatically gain trust and loyalty from consumers. C. Golden Circle in Business Development and Marketing The golden circle will help the process and practice of marketing and business development of a brand based on its characteristics. Here is an example of the application of the golden circle in brand marketing: 1) Brand mission (why) The mission of a brand explains the reason why the brand exists. Keep in mind, the brand mission does not include financial calculations and profits in general. For brands and businesses that want to connect with their consumers on a more personal level, the brand mission must be well-designed and positive. Brand missions can be in the form of solving problems and/or issues experienced by consumers at large. 2) Brand character (how) When the purpose and mission of a business have been determined, then you must next focus on consumer habits. To be more effective, the habits and strategies a brand develops must be in line with the goals to be achieved. Brands with missions and goals that are in the same direction as their strategies and habits will seem more authentic and also bring a positive aura. 3) Brand identity (what) The identity of a brand is a physical form of the mission and character that the company wants to bring. Brand identity also includes products, services, as well as company logos and other visual elements that represent the company. That's the information about the golden circle that you need to know. Keep in mind that the golden circle concept is one that explains how a business can provide maximum value to consumers. When you start a business with a purpose and mission, its presence and resilience will develop better. The golden circle is very useful for branding and developing a business because it relates to the message and story behind a brand. Branding and marketing are indeed crucial. Many concepts can be applied to develop a particular brand and business.