Marketing 3.0 Essays

Marketing 3.0 Essays Marketing 3.0 Essay Marketing 3.0 Essay Marketing 3. 0 Authors : Philip Kotler Hermawan Kartajaya Iwan Setiawan ISBN No: 978-81-265-2619-2 INTRODUCTION In this new book, written by Iwan Setiawan, Hermawan Kartajaya and Philip Kotler titled Marketing 3. 0: Values-Driven Marketing or the human-centric era is the age where consumers will be treated as human beings who are active, anxious, and creative. They define Marketing 1. 0 as a product-centric era, marked with the famous saying of Henry Ford, Any customers can have a car painted any colour that he wants as long it is black. When it comes to todays information age where consumers are well informed and can compare several value offerings of similar products, then the product value is defined by the consumer. They called it Marketing 2. 0 or customer-centric era. Marketing 3. 0 thinks about consumers as whole humans with hearts, minds and spirits. From Ford’s any colour you want, as long as it is black (Marketing 1. 0), to Customer is the King (Marketing 2. 0); marketing has evolved into a collaborative exercise which is defined as the marketing 3. 0. Marketing 3. clearly lays out the authors key ideas and gives you real-world examples so you can implement Marketing 3. 0 practices at your organization. Customers have realized that their purchasing power has a global impact, and they are acting accordingly and talking to each other about the choices they make. Marketing 3. 0 explains how you can engage this conversation, position your brand as a positive force in the world, and collaborate successful ly with customer-advocates. Marketing 3. 0 takes a holistic approach to customers as multidimensional, values-driven people, even as potential collaborators. Marketing 3. 0 explores how brands have an impact on issues such as poverty. Socio-cultural change and environmental sustainability. It also looks at how values-driven marketing affects employees, channel partners, and shareholders. The new model for marketing-Marketing 3. 0-treats customers not as mere consumers but as the complex, multi-dimensional human beings that they are. Customers, in turn, are choosing companies and products that satisfy deeper needs for participation, creativity, community, and idealism. Leading companies realize they must reach these highly aware, technology-enabled customers, and that the old rules of marketing wont help them do this. Instead, they must create products, services, and corporate cultures that inspire, include, and reflect their customers values. With the human spirit being the key driver across an organization’s vision, mission and values,   it’ll be a major overhaul for most of us to move beyond the Segment – Target – Promotion (STP) approach and adopt a more inclusive approach. Products can no longer be sold in isolation. Consumers search for companies that meet their deepest needs for social, economic and environmental justice in their mission, vision and values. Not for only functional and emotional fulfilment but also human spirit fulfilment in the products and services they choose. In Marketing 3. 0, world-leading marketing guru Philip Kotler explains why the future of marketing lies in creating products, services, and company cultures that inspire, include, and reflect the values of target customers. Examines companies that are ahead of the curve, such as S. C. Johnson. The values of S. C Johnson amp; Son are rooted in the concept of the triple bottom line: economic value, environmental health and social progress. To target the minds, hearts and spirit of current and future employees, the company uses the triple bottom line concept. By saying that the company’s fundamental strength lies in its people, it targets the mind. To target the heart, the company hires mothers and was dubbed one of the 100 best companies for working mothers. By offering the opportunity to do what’s right for the environment and social sustainability, the company targets the spirit. Marketing 3. is about changing the way consumer do things in their lives. When a brand brings transformation, consumers will unconsciously accept the brand as part of their lives. This is what human spirit marketing is all about. A brand possesses great characters when it becomes the symbol of a movement that addresses the problems in the society and transforms people’s lives. Example Colgate, a brand with a mission to make people smile is running a consumer empowerment program called Smile. It encourages consumers to post photos of their smiles and connect with others participating in the program. CHAPTER WISE SUMMARY Chapter 1 In this chapter, Marketing 3. 0 is the era where marketing practices are very much influenced by changes in consumer behaviour and attitude. It is the more sophisticated form of the consumer-centric era where the consumer demands more collaborative, cultural and spiritual marketing approaches. New wave technology enables people to turn from being consumers into prosumers. One of the enablers of new wave technology is the rise of social media. Social media is classified in two types: 1. Expressive social media that include blogs, twitter, face book, photo sharing sites like flickr and other social networking sites. . Collaborative social media that includes sites such as Wikipedia, Craiglist etc. Technology drives globalisation of the legal, political, economy and social culture landscape, which creates cultural paradoxes in the society. As social media becomes increasingly expressive, consumers will be able to increasingly influence other consumers with their opinions and experiences . The influence that corporate advertising has on shaping buying behaviour will diminish accordingly. Because social media is low cost and bias free, it will be the future of marketing communications. Collaboration can also be a new source of innovation. Marketers today no longer have full control over their brands because they are now competing with the collective power of the consumers. Collaboration begins when marketing managers listen to the consumers’ voices to understand their minds and capture market insights. A more advanced collaboration takes place when consumers themselves play the key role in creating value through cocreation of products and services. Marketing 3. 0 is not about companies doing public relations. It is about companies weaving values into their corporate cultures. Profit will result from consumers’ appreciation of these companies contribution to human well being. Chapter 2 The year 1989 proved to be the tipping point for marketing as well. The personal computer had entered the mainstream and the internet was born as a strong complement in the 1990s. Technology also drives the rise of the creative market, i. e. more spiritual in viewing the world. Given the rise of more engaged consumers, the 3i model (identity, integrity amp; image) will be essential for all marketing practitioners to effectively handle positioning, differentiating and branding. Marketing in culmination will be a consonance of 3 concepts: identity, integrity and image. Marketing is clearly defining your unique identity and strengthening it with authentic integrity to build a strong image. Marketing 3. 0 offers not just a concept, but detailed notes on how it can be implemented and practiced by corporates. Chapter 3 To market the company’s or products mission to consumers, companies need to offer a mission of transformation, build compelling stories around it and involve consumers in accomplishing it. Defining a good mission starts with identifying small ideas that can make a big difference. To convince consumers that your stories are authentic, engage them in conversation about your brand. Customer empowerment is the key to making a difference. Chapter 4 Corporate culture is about integrity. It is about aligning the shared values and common behaviour of employees. In the context of the forces at work, corporate culture should be collaborative, cultural and creative. It should transform the lives of people employees and empower employees to transform the lives of others. Permission to play values is the basic standards of conduct that the employees should have when they join the company. Aspirational values are values that a company lacks but the management hopes to achieve. Accidental values are acquired as a result of common personality traits of employees. Core values are the real corporate culture that guides employees’ actions. Shaping a corporate culture means aligning shared values and common behaviour. Good values are the ones aligned with the forces at work: collaborative technology, globalisation driven cultural transformation and the rising importance of creativity. Hence, good values are those that stimulate and nurture the collaborative, cultural and creative sides of employees. Chapter 5 Technology enabled forces of globalisation to work. Channel management begins with finding the right channel partners with similar purpose, identity and ultimately values. Partners with compatible values will be able to deliver the stories convincingly to consumers. To bring the partnership one step forward, companies should integrate with the partners to bring integrity to the stories. Companies such as ITC limited play an important role in partnering with the poor to distribute their products in the rural areas. Chapter 6 Long term driven capitalism will make a significant contribution and they encourage shareholders to be more patient in their investments. To convince shareholders, a company’s management needs to formulate and communicate the corporate vision in addition to its mission and values. The corporate vision should embrace the concept of sustainability as it will determine competitive advantage in the long run. The company needs to communicate to its shareholders that adoption of sustainable practices will improve cost productivity, lead to higher revenue growth and improve corporate brand value. Chapter 7 A company should choose to promote issues based on three criteria: the relevance with its vision-mission values, the business impact, and the social impact. Companies should also act as good corporate citizens and address social problems within their business models. Companies are traditionally started for the purpose of making a profit through satisfying some set of market wants and desires. If they succeed and grow, they will usually receive requests to make donations to worthwhile causes. Overtime, the public begins to expect companies to operate as engines for social-cultural development and not engines for profit making. Some companies may react to this by building social challenge into the very fabric of their character. At this time, they transform the society and they have entered the marketing 3. 0 stage. Chapter 8 Poverty remains a core issue facing humankind. The distribution of income is in the shape of a pyramid rather than a diamond, with too many poor at the base of the pyramid. But pyramids can be converted to diamonds by empowering the poor. 1. Micro lending to the poor, especially women, who use the money in a productive way and show very high rates of payment. . Encourage the formation of Social business enterprises (SBE’s). The company can be positioned as a ‘hero for the poor’ or as a company that ‘teaches people how to fish instead of giving them free fish’. A SBE helps to improve their lives by providing affordable products and income generating opportunities. SBE’s offer the promise of rescuing the poor people by giving them opportunities and by using a modified marketing mix that makes their product and service offerings more affordable and accessible to the poor. Chapter 9 In this chapter, the importance of value based companies moving towards a green commitment is explained. Benefits include lower cost, better reputation and motivated employees. Three forces act for the building of the same. 1. Innovators- The innovator invents/innovates products that have the potential to save the environment via scientific research of major new green innovations. These products reverse the damage done and do not damage the environment. The innovations produce major impacts on the environment because they are used globally in the long run manner. . Investors- These are company that finance companies and individuals to do research projects in external companies or their own companies. 3. Propagator- These are companies that create environment ambassadors by spreading the values of protecting the earth to employees and consumers. It forms the critical mass or the support system that will purchase the products sold by the innovator and which will support the positive co ntribution of the investor. When all these roles act in the same market and collaborate, the green market is reinforced. Companies that promote environmental sustainability are practicing marketing 3. 0. Chapter 10 Customers are more aware, more active, and more powerful than ever before. Marketing 3. 0 shows you how to demonstrate you relevance to this interconnected, global community, giving you an unmatched guide to winning in this new age of marketing. The growth of social networks make it easier for people to talk about existing companies, products and brands in terms of their functional performance as well as their social performance. The new generation is much more attuned to social issues and concerns than ever before. Finally the book closes by talking about the ten credos of marketing 3. 0. The company fulfilling the mentioned ten doctrines is said to be practicing marketing 3. 0. 1. Love your customers, respect your competitors. 2. Be sensitive to change, be ready to transform 3. Guard your name, be clear who you are 4. Customers are diverse, go first to those who can benefit most from you. 5. Always offer a good package at a fair price 6. Always make yourself available, spread the good news. 7. Get your customers, keep and grow them. 8. Whatever your business, it is a service business to the nature. . Always refine your business process in terms of quality, cost and delivery. 10. Gather relevant information, but use wisdom in making your final wisdom. OVERVIEW OF THE BOOK Mktg 1. 0 represented  an effort to establish the superior performance of a product (Tide cleans better, Volvo is safety,)  In Mktg 2. 0; marketing added an emotional dimension to strengthen  its appeal to prospective cu stomers. We are entering Mktg 3. 0 where marketers are  adding a human spirit dimension. Mktg 1. 0 and 2. 0 is how about a product or offering will serve you. Mktg  3. is how a product and its company are sensitive to social and economic issues that are a concern to everyone. Companies that conduct themselves ecologically and create real value that  aligns with the social good will  be competitively favoured. The best companies right now, such as S. C. Johnson, are creating products, services, and company cultures that lead, inspire, and reflect the values of their customers. A key observation in this book is on Globalization as one of the trends that have influenced the emergence of Marketing 3. 0. The book calls it the ‘Globalization Paradox’ and quotes three instances of the same. First, the idea that capitalism does not require democracy which is exemplified by China – open markets do not mean open politics. The second paradox is explained as unequal distribution of wealth and the case in point is India with 50 Billionaires in one hand and 1 Billion of the population living with less than a dollar a day. And the third paradox is that the Global culture further strengthens the traditional culture as global cultural Brands gives direction owing to the increased awareness and concern in people about larger social issues. Another great thought in the book is about the age of creativity and human spirit marketing. In the information age, people are no longer willing to take brands at face value. What consumers are saying is not just, ‘What are you giving me? ’ but ‘Where do you come from? ’ and ‘What is the impact of my buying? ’ The new buzzwords are not just Value or Benefit, but include Authenticity and Social Impact as well. Thus, collaborative marketing and cultural marketing is considered as a breakthrough to the future. Relevance of Marketing 1. 0 amp; 2. 0 to Marketing Concept 3. 0 But marketing 1. 0 and 2. 0 still have some relevance. Marketing is still about developing segmentation, choosing the target segment, defining the positioning, providing the four P’s and building brand around the product. However, the changes in the business environment-recession, climate concerns, new social media, consumer empowerment, new wave technology, and globalisation- will continue to create a massive shift in marketing practices. Legendary marketing sage Philip Kotler and his colleagues Hermawan Kartajaya and Iwan Setiawan have identified this definitive break with new model imbued as Marketing 3. 0. Moving beyond product-based (Marketing 1. ) and consumer-based (Marketing 2. 0) approaches, Marketing 3. 0 takes a holistic approach to customers as multidimensional, values-driven people, even as potential collaborators. Unlike traditional marketing that emphasizes rational (mind) and emotional (heart) benefits to a consumer, Marketing 3. 0 includes a third dimension – ‘spirit. ’ The authors have cited m any examples in various parts of this book to strengthen this concept of Marketing 3. 0. Organizations will need to define themselves not just in terms of products and profitability, but in terms of their values and larger connect with the community.