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January 18 - January 23, 2020
Marketing 3.0 is the stage when companies shift from consumer-centricity to human-centricity and where profitability is balanced with corporate responsibility.
CHAPTER ONE Welcome to Marketing 3.0 WHY MARKETING 3.0?
Instead of treating people simply as consumers, marketers approach them as whole human beings with minds, hearts, and spirits.
In a world full of confusion, they search for companies that address their deepest needs for social, economic, and environmental justice in their mission, vision, and values. They look for not only functional and emotional fulfillment but also human spirit fulfillment in the products and services they choose.
However, companies practicing Marketing 3.0 have bigger missions, visions, and values to contribute to the world; they aim to provide solutions to address problems in the society. Marketing 3.0 lifts the concept of marketing into the arena of human aspirations, values, and spirit.
the age of participation, the age of globalization paradox, and the age of creative society.
THE AGE OF PARTICIPATION AND COLLABORATIVE MARKETING
New wave technology is technology that enables connectivity and interactivity of individuals and groups. New wave technology consists of three major forces: cheap computers and mobile phones, low-cost Internet, and open source.1 The technology allows individuals to express themselves and collaborate with others. The emergence of new wave technology marks the era that Scott McNealy, Chairman of Sun Microsystems, declared as the age of participation. In the age of participation, people create news, ideas, and entertainment as well as consume them. New wave technology enables people to turn from
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Table 1.1 Comparison of Marketing 1.0, 2.0 and 3.0
One of the enablers of new wave technology is the rise of social media. We classify social media in two broad categories. One is the expressive social media, which includes blogs, Twitter, YouTube, Facebook, photo sharing sites like Flickr, and other social networking sites. The other category is the collaborative media, which includes sites such as Wikipedia, Rotten Tomatoes, and Craigslist.
Marketers today no longer have full control over their brands because they are now competing with the collective power of consumers.
Companies must now collaborate with their consumers.
The P&G model resembles a starfish, which, according to Brafman and Beckstrom, is a good metaphor for companies of the future because it has no head and is more like groups of cells working together.
Consumers are no longer isolated individuals, rather they are connected with one another. In making decisions, they are no longer unaware but are informed. They are no longer passive but are active in giving useful feedback to companies.
In the first stage, marketing was transaction oriented, focused on how to make a sale. In the second stage, marketing became relationship oriented, how to keep a consumer coming back and buying more. In the third stage, marketing has shifted to inviting consumers to participate in the company’s development of products and communications.
Collaborative marketing is the first building block of Marketing 3.0. Companies practicing Marketing 3.0 aim to change the world. They cannot do it alone. In the interlinked economy, they must collaborate with one another, with their shareholders, with their channel partners, with their employees, and with their consumers. Marketing 3.0 is a collaboration of business entities with similar sets of values and desires.
THE AGE OF GLOBALIZATION PARADOX AND CULTURAL MARKETING
Like technology, globalization reaches everyone around the world and creates an interlinked economy. But unlike technology, globalization is a force that stimulates counterbalance. In search of the right balance, globalization often creates paradoxes.
Globalization liberates but at the same time puts pressure on nations and people around the world.
Globalization levels the playing field for nations around the world, but at the same time it threatens them. Consequently, countries will defend their national markets against globalization. In other words, globalization provokes nationalism.
First, while democracy is finding more global roots, the new, nondemocratic superpower, China, grows in power. China has become the world’s factory and holds a key role in the global economy. Despite the growing influence of democracy in the world, the cash-rich nation proves that capitalism does not require democracy. Globalization may open up the economy but not the politics. The political landscape remains national. This is the political paradox of globalization.
Second, globalization calls for economic integration but does not create equal economies. As Joseph Stiglitz argued in Globalization and Its Discontents, the processes of privatization, liberalization, and stabilization have been mismanaged, and therefore many third world countries and former Communist states are actually worse off now than they were before. Economically, globalization appears to hurt as many countries as it helps. Even within the same nation, unequal wealth distribution exists.
This is the economic paradox of globalization.
Third, globalization creates not a uniform but a diverse culture.
there are two axial and opposing principles of our age: tribalism and globalism.
Globalization creates universal global culture while at the same time strengthens traditional culture as a counterbalance. This is the sociocultural paradox of globalization, which has the most direct impact on individuals or consumers.
A major effect of these paradoxes of globalization is that companies are now competing to be seen as providing continuity, connection, and direction.
Cultural brands need to be dynamic because they tend to be relevant only at a certain period of time when certain contradictions are evident in the society. Therefore, cultural brands should always be aware of new emerging paradoxes that are changing over time.
To develop such a culturally relevant campaign, marketers must understand something about anthropology and sociology.
Consumers who are affected by cultural campaigns are a majority but they are the silent majority. They sense the paradoxes but do not confront them before a cultural brand addresses them.
Cultural brands tend to be relevant only to certain societies. But this does not mean that global brands cannot be cultural brands. Some well-known global brands are consistently building their cultural brand status.
the Dell Theory of Conflict Prevention, which stated that no countries within Dell’s supply chain had gone to war with each other. Instead, they are collaborating to form a supply chain for global society. As a result, Dell is increasingly replacing McDonald’s as the icon of globalization.
Globalization normally does not factor in social justice in its strategy. Globalization applauds the winners in costs and competencies. The strong minority will thrive but the weak majority will strive.
People perceive that The Body Shop seeks to promote social equality—something that is often neglected in the globalized world.
Cultural marketing is the second building block of Marketing 3.0. Marketing 3.0 is an approach that addresses concerns and desires of global citizens. Companies practicing Marketing 3.0 should understand community issues that relates to their business.
Marketing 3.0 is marketing that puts cultural issues at the heart of a company’s business model. In later chapters, we will elaborate on ways a company practicing Marketing 3.0 demonstrates its concern for the communities around it: communities of consumers, employees, channel partners, and shareholders.
THE AGE OF CREATIVE SOCIETY AND HUMAN SPIRIT MARKETING
Creativity expresses itself in humanity, morality, and spirituality.
One of the key characters of an advanced and creative society is that people believe in self-actualization beyond their primal needs for survival. They are expressive and collaborative cocreators. As complex humans, they believe in the human spirit and listen to their deepest desires.
The inverted pyramid would then place the fulfillment of self-actualization as a prime need of all human beings.
Spirituality and creativity are similar in the mind of an artist. Creativity spurs spirituality. Spiritual need is humanity’s greatest motivator, which unleashes deeper personal creativity.
As a result of this growing trend in society, consumers are now not only looking for products and services that satisfy their needs but also searching for experiences and business models that touch their spiritual side. Supplying meaning is the future value proposition in marketing. The values-driven business model is the new killer app in Marketing 3.0.
Marketing 3.0 is not about companies doing public relations. It is about companies weaving values into their corporate cultures.
This is spiritual or human spirit marketing from a company’s point of view. This is the third building block of Marketing 3.0.
MARKETING 3.0: COLLABORATIVE, CULTURAL, AND SPIRITUAL
Figure 1.1 Three Changes that Lead to Marketing 3.0
Table 1.2 Building Blocks of Marketing 3.0
New wave technology facilitates the widespread dissemination of information, ideas, and public opinion that enable consumers to collaborate for value creation. Technology drives globalization of the political and legal, economy, and social culture landscape, which creates cultural paradoxes in the society. Technology also drives the rise of the creative market, which is more spiritual in viewing the world.
CHAPTER TWO Future Model for Marketing 3.0 THE PAST 60 YEARS OF MARKETING: A BRIEF RETROSPECT
In a nutshell, marketing has revolved around three major disciplines: product management, customer management, and brand management .
