marketing 3.0

Marketing 3.0 Created by Prashant Pathare

Source: White Paper Prepared by Philip Kotler and Hermawan Kartajaya

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Prashant [email protected] in.linkedin.com/in/kingpatprash @kingpatprash +91 – 99203 12380

Marketing?

Definition

Performance of activities that seek to accomplish an organization’s objectives byanticipating customer/ client needs and directing a flow of need satisfying goodsand service from producer to customer/ client.

Overview of Marketing Strategy Planning Process

Source: Book, - Basic Marketing (Wiliam PerreaultJoseph Cannon E. McCarthy)





























































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Marketing Versions

Marketing 1.0 – Product CentricEra

Industrial Age

Without considering target market’sneeds and wants

Many misconceptions of marketing

Mere Selling, An Art of Persuasion,and even Cheating

World changed over the past decades because of the technology evolution

So Did Marketing

Marketing 2.0 – Customer CentricEra

Information Technology

Product value is defined by Customer

Must for Marketers to identifyunfulfilled needs and wants

Marketing continues to have a badname in many circles

Marketing 3.0 – Human Centric Era

Consumers will be treated as human beings who are active, anxious, and creative

Request more participation in value creation

Demand their deepest anxieties and desires

Ask for their creativity to be appreciated





























































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Age of Participation & Collaborative Value CreationDevelopment of computing has rolled out in five major waves

1st Wave1960 – Mainframe ComputersAdvanced into corporate world and become essential business tools

2nd Wave1970s – Minicomputer

3rd Wave1980s – Personal Computers

4th Wave1990s – Networking and Internet

5th WaveUnprecedented coalescence of three technological forces – cheap and ubiquitous computing devices, low-cost & omnipresent bandwidth, and open standardsOffers limitless connectivity and interactivity

Marketing Managers listen to consumer’s voice to understand their minds and capture market insights

Eg: Starbucks and HP collaborate to have Hear Music Media Bars, tablet-based PCs to allow customers to create their own mix CDs





























































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Globalization Paradox & Iconic Branding

Globalization has always created a world of paradox

Three Macro Paradoxes that arise –

1. Creates a new non-democratic superpowerChina a manufacturing hub; contributes 50% to GDP

2. Doesn’t create a convergent but a divergent economyMore than 1Billion people who are state in extreme poverty and subsist on less then $1 per day

3. Doesn’t create a uniform, but a diverse cultureThomas Friedman – The Lexus and the Olive TreeThe Lexus – Drive for prosperity and developmentThe Olive Tree – Ancient forces of culture, geography, tradition, and community

Effect – Companies are intensely competing to be icons of the society

Iconic Brands address acute contradictions in society: Douglas B. Holt





























































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Consumer Creativity and Independent Communication

Daniel Pink – Whole New Mind

Ages: Agricultural, Industrial, Information, Conceptual

Senses: Design, Story, Symphony, Empathy, Play, Meaning

Creativity is the driving force of economic growth

Creative people are the ones that will shape the future market

Customer: Not only is the King but also MR Head, R&D Chief and Product-Development Mgr

For these consumers, communication:

No longer effective - Top-down, one-way, and mass

Aspirations

Eg: LEGO

Enlists influential consumers as online evangelists

New locomotive kit, shown to 250 LEGO train fans

Word of Mouth; sold 10k units in 10 days with no other marketing





























































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Three Characteristics of Marketing 3.0

Will be very much influenced by consumer

More sophisticated form of customer-centric era

Technology → Enables Customers to collaborate in Value Creation

Global Paradox → Technology, Iconic brands shall win competition

Consumer Sophistication generates future market





























































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How to stay relevant in Marketing 3.0?Brands must target consumers as human beings

According to Stephen Covey, human body is made up of four basic components:

Capable of Independent Thought & AnalysisBegins herePositioning

Concept evolvedWorld became more emotional

Virgin’s – Unconventional Marketing

Unlocking the soul’s codeMarketers should discover the anxieties

and desires of customers

Human Body





























































kingpatprashAuthor:


Redefining Marketing

Redefined to its Root as a Triangle of Positioning, Differentiation, and Brand

Main Message

Not telling lies

Keeping the promise

Brand Identity

Positioning in the minds of the consumers

Unique; heard & noticed in clutteredmarketplace

Relevant to rational needs and wants ofconsumers

Brand Image

Acquiring consumer’s mind-share

Appeal consumers’ emotional needs & wants

Brand Integrity

Credible to your promise

Establishing the trust of the consumers

Targeting spirit of the consumer





























































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Marketing of the Meaning

Mission

Charles Handy: Inverted Donut

To incorporate as part of corporate culture

Difficult to maintain commitment, especially during difficult times

World at Large – A better and ideal place to live in

Corporate Philanthropy – For a social or environmental cause

Starts in two ways

1. CEO gets passionate

2. Company decides

Best Approach is to embed it in Mission, Vision and Values

Mission – Company’s Reason for Being

1. Expresses business your company is in (dynamic)

2. Company’s basic purpose (enduring)

Firmly rooted in present

Vision – Inventing Future

Aspire to become, to achieve, to create

Symbolized by Compass





























































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Value Based Matrix





























































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Eg: S C Johnson

Since 1885

Five Generation Family Company

Specialization: Home Care Consumer ProductsHome Cleaning, Air Care, Pest Control, Home Storage, Auto Care

18 Brands





























































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Eg: S.C. Johnson & Sons





























































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Putting It All Together

Values Driven Marketing Best Model in Marketing 3.0 era

Combining the efforts to show the true meaning of marketing and market the meaningitself

Companies that can implement the model will win the competition in Marketing 3.0





























































kingpatprashAuthor:


THANK YOU

Have An Exuberant Day !!!



























































