Leading companies now understand they must reach highly aware, technology savvy customers. Kotler, Kartajaya and Setiawan say that the ‘old rules’ of product-based and consumer-based marketing will fail to do this. Companies need instead, to focus on creating products, services and entire corporate cultures, which are customer value driven at a more multi-dimensional, fundamental level.
To give a general idea, the following are the main differences between the three concepts:
Marketing 1.0 – product-centric, or the marketing of the industrial age, when marketing was about selling factory outputs. Marketing was transaction orientated: how to make a sale.
Marketing 2.0 – consumer-based, where marketing is relationship orientated -how to keep customers coming back and buying more.
Marketing 3.0 – value driven marketing, the linkage of three building blocks
Participation and collaborative marketing has been enabled by new wave technology, namely cheap computers and mobile phones, lower cost internet and open source, allowing individual self expression and collaboration with others, facilitated by social media. Marketing has shifted to inviting consumers to participate in the company’s development of products and communications.
Globalization paradox and cultural marketing. With globalization, comes a number of paradoxes: it liberates, but puts pressure on nations creating a level playing field for countries, but at the same time threatening them; it opens nations economically, but not politically. As a consequence, there is a need to put cultural issues at the heart of a company’s business model.
The rise in the creative society shapes the search for experiences. Consumers are now not only looking for products and services that satisfy their needs, but also experiences and business models that touch their spiritual side.
So marketing has evolved. The contention is that companies hoping to thrive in the 3.0 future cannot do so alone. In this interlinked economy, to thrive they must collaborate with one another, with their shareholders, channel partners, their employees and their consumers.
The Bottom Line?
• Brands no longer control everything the customer sees
• Consumers no longer look at just a product, but the brand as a whole
• People buy from people they know and trust
You must dig deep to find the essence of your brand, and to identify your brand personality. As the owner of your business brand you need to understand your audience by getting to know your customers, and sharing your passion and knowledge. Starting a conversation will encourage feedback, good or bad, and will give you insight into what people are saying about you.
Regular communication and openness will build a community of followers, ambassadors, and loyal customers. In turn, your followers will help spread the word. Funny that is what social media is all about!
Marketing 3.0 engages your audience on a new level. Marketing 3.0 requires a sense of humor, an ability to handle criticism and openness. Sound tough? It is.
If you are not a people person and don’t like starting conversations you should maybe stay away from engaging on a personal level, but you can hire someone to help, just make sure they understand your rules for engagement.
Variables have been re-designed, resulting in a superior and streamlined business model that challenges conventional ones.
Summary and key points
Marketing 3.0 assert that there are three stages in the relationship between marketing and values: first when marketing and values are polarised i.e. at odds; secondly when they are balanced where businesses operate a conventional business model, yet donate a proportion of profits to social causes; thirdly the ultimate stage of integration where there is no separation between marketing and values.
In general Marketing 3.0 concludes with 10 indisputable credos that integrate marketing and values in this way:
Love you customers, respect your competitors
Be sensitive to change, be ready to transform
- Guard your name, be clear about who you are
Customers are diverse; go first to those who can benefit most from you
Always offer a good package at a fair price
Always make yourself available, spread the good news
Get your customers, keep and grow them
Whatever your business, it is a service business
Always refine your business process in terms of quality, cost and delivery
Gather relevant information, but use wisdom in making your final decision