Marketing 3.0
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The new model for future marketing – Marketing 3.0 – treats customers not as mere consumers but 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. In Marketing 3.0, described about in creating products, services, and company cultures that inspire, include, and reflect the values of target customers. Explains the future of marketing, along with why most marketers are stuck in the past Examines companies that are ahead of the curve, famous for his "4 P′s of Marketing" In an age of highly aware customers, companies must demonstrate their relevance to customers at the level of basic values. Marketing 3.0 is the unmatched guide to getting out front of this new tide sweeping through the nature of marketing.
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Marketing 3.0
- 1. MARKETING 3.0 Presented By: Chirag Patel (C005) Jigar Chaudhari (C016) Navin Chaudhari (C004) The way to sustainable….
- 2. ACannd ynoouw c…o uthnety caorem comnestracnitalyls c?hanging !!!
- 3. CHANGE “Within five years, if you are run your business in the same way as you do now, you are going to be cut out of business.” - Philip Kotler So the… MARKETING …. had to change Why Marketing 3.0 ? It’s all about our lives and our world !
- 5. Marketing 3.0 Adoption of Marketing 3.0 Old Philosophy: Better Nutrition Traffic Safety “What is good for business is good for society !” New Philosophy: “What is good for society is good for business !” Reducing Solid Waste Staying Active Reducing Obesity Recycle Used Electronics
- 6. Marketing 3.0 : Collaborative, Cultural, Spiritual The Age of Participation and Collaborative Marketing The Age of Globalization and Cultural Marketing The Age of Creative Society and Spiritual Marketing The Stimulus The Problem The Solution
- 7. The Disciplines of Marketing Today’s Marketing Concept Future Marketing Concept Product Management 4 P’s Co-creation Customer Management STP Communitization Brand Management Brand Building Character building
- 8. Co-creation • Innovation • Collaboration • Accumulation Platform Individual Consumer Consumer Feedback
- 9. Communitization Consumers can organize into communities that exist not to serve the business but to serve the members. Pools strong belief and affiliation Webs one-to-one Hubs loyal fan base Character Building Authenticity that core differentiation.
- 10. Shift to human spirit: The 3i Model Brand Touch point of mind, heart, spirit Positioning Alerts consumer for authenticity Differentiation Brand’s DNA reflects true integrity Brand identity Positioning of brand Brand integrity Fulfilling the promise – trust Brand Image Acquiring consumers’ emotions Solid Proof Buying Decision
- 11. Brand Integrity 3i (Positioning) (Differentiation) Open Happiness “LIVE POSITIVELYTM ” (Brand) Coca-Cola Company Vision, Sustainable Growth The 3i Model: Coca Cola
- 12. Shift to Values-Driven Marketing • To identify the anxieties and desires of the consumers to be able to target their minds, hearts, and spirits. • In the globalization paradox, they make their society and the world at large, a better an ideal place to live. • Peter Drucker • Charles Handy • Picture of desirable future state • Set of corporate priorities • Current and future CUSTOMER • Current and future SHARE HOLDER • Current and future EMPLOYEES VALUE-BASED MATRIX MODEL (VBM)
- 13. MIND HEART SPIRIT MISSION To refresh the world... To inspire moments of optimism and happiness... To create value and make a difference… Nurture a winning network of customers and suppliers Open Happiness Live our values LIVE POSITIVELY TM VISION - People - Portfolio - Partners - Planet - Profit - Productivity Economic value of the satisfy basic need Maximizing return to shareowner while being mindful of our responsibilities Sustainability (GRI Report) Sustainability KPI VALUE Leadership, Collaboration, Integrity, Accountability, Passion, Diversity, Quality Be a highly effective, lean and fast-moving organization World’s 25 Best Multinational Workplaces 2013 Inspire creativity, passion, optimism, fun Values-based matrix model (VBM)
- 14. The Goals of Values-Based Marketing • Customer-centric: Value based marketing is sometimes initiated because of external changes in customer attitude. E.g. Kraft Food • Social Responsibility: An organization’s corporate statement might expressive include value-based goals. E.g. P & G has started Shiksha Abhiyaan to the rural children • Business Alliances: It helps to achieve value based objective. This is particularly effective when alliances relates to delivering value to help communities. E.g. TATA make alliances with DOCOMO to reach customers through communication. • Customer Values: In important part of developing value based strategy is discovering what customers value for company.
- 15. MISSION TO THE CONSUMERS VALUES TO THE EMPLOYEES VALUES TO THE CHANNEL PARTNERS VISION TO THE SHARE HOLDERS
- 16. MISSION TO THE CONSUMERS Mission “Cadbury means Quality” Cadbury Apple Coca Cola “To make a contribution to the world by making tools for the mind that advance humankind” • To refresh the world - in mind, body and spirit • To inspire moments of optimism - through our brands and actions • To create value and make a difference everywhere we engage
- 17. GOOD MISSION Business as unusual Story that moves people Creating Spreading Consumer Empowerment Good Mission Realizing Amazone.com • Provide the Biggest Selection of Knowledge Delivered Conveniently eBay Google • Make the world’s information organized and accessible • Transformation or Change • Consumer unconsciously accept it as a part of its daily life • Human Spirit Marketing Steve Jobs Tim cook Howard Schultz-Starbucks Resource Connection Container Journey Change Transformation
- 18. VALUES TO THE EMPLOYEES Shared values integrate employees under one corporate culture.
- 20. VALUES TO THE CHANNEL PARTNERS In marketing 3.0 • Collaborator • Cultural Change Agent • Creative Partners Body shop : As imperative for growth emerged multi channel approach was adopted. Anita Roddick's was interested in people interested to make difference rather than people making profits. Women were more likely than men to share her same social and environmental values.(90%partners were women initially). 1. Single stage channel 2. Multistage channel 3. Territory based channel 4. Integrated multichannel stages.
- 21. Biggest issue in marketing is to access rural market. Socially responsible distribution is best modeled. ITC: e-choupal: enables farmers to access information on weather and crop prices and sell their produce directly through consumers without middle men. Also choupal sagars concept of minimalls that sell products from consumer goods to health and financial services. Hindustan Unilevers Empower rural Women ”Shakti Amma” Consumer as Channel Partner
- 22. VISION TO THE SHARE-HOLDERS Profitability Return-ability Sustainability long term Goal Improve Shareholder Value Short term Goal Creating a Competitive Advantage. Improved Cost Productivity Higher Corporate Brand Value Higher Revenue from New Market Opportunities
- 23. Marketing to the Post Growth Market Little or No growth
- 24. Transformation 85% US Consumer 93% UK consumer
- 25. Creating Socio-Cultural Transformation Identify Socio- Cultural Challenges Select Target Constituents Offer Transformational Solution • Primary focus on Entertainment Obesity Children Better for you
- 26. Creating Growth in Emerging Market > $ 20,000 $1,500 - $ 20,00 $ 1,500 < $ 1,500 Bottom of Pyramid Diamond
- 27. Three force Access of Technology to Rural Market Blend of Excess Supply Government Policy
- 28. Four Requirements Huge scale Huge scale Solutions must be enduring for generations Solutions must be enduring for generations Effective Efficient Shakti Amma Effective Efficient • 14 State • 1,00,000 Village • 50,000 women • Its job-creating impact • Create better living condition • Involve the community
- 29. Social Business Enterprise (SBE) Stretches Disposable Income • By providing goods & services at lower price Expands Disposable Income • By providing goods & services previously not available Increases Disposable Income
- 30. Marketing Model of SBE Elements of Marketing Social Business Enterprise Business Model Segmentation Bottom of the Pyramid Targeting Targeting High Volume Communities Positioning Social Business Enterprise Differentiation Social Entrepreneurship Marketing Mix Product Accessible for Low-Income Customers Price Affordable Promotion Word-of-Mouth Place Community Distribution
- 31. Learnings Love Your Customers, Respect Your Competitors Be Sensitive To Change, Be Ready To Transform Guard Your Name, Be Clear About Who You Are Get Your Customers, Keep And Grow them Whatever Your Business, It Is a Service Business
- 32. Customers are Diverse; Go First To Those Who Can Benefit Most From You AlwGaylos bOaflf Seer gam Geonotd Package at a Fair GPlorbicael products and features at higher price Shop Houses in Shri Lanka Global quality but with local features at slightly lower prices Glocal Segment Always Make Yourself AvAainlanblae,p Suprrenaad TIhoed Giozoedd N Sewaslt in Ghana Local Segment Local products with local features at local prices Bottom-of-the-pyramid segment Buy only the cheapest products available Always Refine Your Business Process In Terms of Quality, Cost and Delivery Gather Relevant Information, But Use Wisdom in Making Your Final Decision
- 33. References • Disney Consumer products: Marketing Nutrition to children, David E. Bell and Laura Winig, HBR article-2009. • Shaping The Future:solving Social Problems through Business Strateg y; Pathways to Sustainable Value Creation in 2020, Based on research by McKinsey & Company, CECP article. • Corporate Social Responsibility – Towards a Sustainable Future ; A White Paper; KPMG in India.
- 34. • Volunteering for Impact, Best Practices in International Corporate Volunteering, Greg Hills and Adeeb Mahmud, September 2007. • http://gpah.bsr.org/en/case-studies/view/new-business-models-to-increase-access-in-developing- countries • http://gpah.bsr.org/en/case-studies/view/base-of-the-pyramid-innovation-project • http://www.malaria.novartis.com/innovation/sms-for-life/ • http://www.unilever.com/images/es-Fortified-foods-improve-health-in-Ghana_tcm13- 387429.pdf
Notas do Editor
- New wave technology facilitates the widespread 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 which creates cultural paradoxes in the society. Impact on consumer’s anxiety and desire so comp has to share their dream with consumer. Technology also drives the rise of the creative market, which is more spiritual in towards the world. Means future propotional for business model. So this blocks used for how to apply for communities na d how to translate into busi model.
- Mystarbuckidea: provide services to constomer to share ideas Peugeot: offers special people to have chance to help their brand by their exp. Puma: by feedback merge all n cocreate new pdt.
- Godin tribes, we need u to lead us Connected to IDEA Connected to ONE ANOTHER e.g social media Connected to a LEADER Authentic athlets excellence – just do it – nike
- Therefore, companies has to share the same dream with consumers and make a difference.
- Changed direct promotion of junk food to children due to consumer opinion
- MARKETING THE MISSION TO THE CONSUMERS
- CONSUMERS ARE THE real BRAND OWNERS Consumer are attached to brand through Brand loyalty Though Cadbury find worm in product company change their strategy mission to “” and made quality campaign through media and change their packaging double rapper and came up with new strategy that give more gaining loyal costomer.
- Jeff Bezos Amazon.com Reinvented retailing of books (and other products) with Amazon.com (1994) and reinvented the book itself with the Kindle (2007) Pierre Omidyar eBay Connected sellers and buyers with eBay (1995), facilitated transaction and governance with user ratings and inclusion of PayPal as subsidiary (2002) Larry Page and Sergey Brin Google Since 1998, Google has been reinventing the search engine (the word “Google” is in the dictionary defined as a word for searching on the Internet); redefined online advertising by providing search engine-based advertising platform Advertising network develop one-2-one, one-2-many or many-2-many.
- Values-driven employees not only work harder but also become better face of company. Their behavior will be the part of brand stories that customer talk about. Employees should be seen as “value ambassador” customer judge authenticity looking at employees.
- TELL ME AND I WILL FORGET, SHOW ME AND I MAY REMEMBER, INVOLVE ME AND I WILL UNDERSTAND Local service / Cross border Service Becton, Dickinson and Company) is a global medical technology company improve laboratory capacity, in particular with HIV testing in Zambia Pfizer’s Global Health Fellows program loans employees to health care-related NGOs and multilateral and governmental organizations for a period of three to six months Starbucks partners with the nonprofit intermediary Earthwatch Institute to place employee volunteers in environmental projects. Timberland Used to be planting in china as csr activity IBM has responded to more than 70 natural disasters and provided millions of dollars for its disaster-relief experts to participate in cross-border volunteer opportunities.
- Single Channel stage. Many companies start out in a limited regional setting where all sales can be covered by their own sales force or a single channel partner. As the company grows, it adds more distributors and other channels to increase its coverage area to improve sales revenue and product availability without limiting where or to whom each distributor or other channel may sell. This strategy normally results in sales conflict among the distributors and other channels. This second stage is the Multi-Channel stage, in which the company sells to multiple distributors and direct channels but does not delineate product, segment, or geographical boundaries. A more advanced distribution systems takes into consideration channel conflict problems and divides the company’s market by territories, consumer segments, or product segments. Each distributor or channel is then given a separate piece of the market to develop. This third level is the Territory- Based Channel stage, in which the company sets clear boundaries and rules for distributors and direct channels to operate to avoid channel conflict. In the most advanced distribution systems, there exists a division of tasks among a company’s various channels. With this division of tasks, several different types of channels can coexist within a segment or regional market. Instead of competing with each other, the channels will collaborate. This fourth level is the Integrated Multi-Channel stage, in which a company divides tasks between different channels. Multiple channels may coexist within a regional market or market segment by working together and not competing for business. For example, a computer manufacturer may allocate tasks to multiple channels: a web site to generate demand, its own stores to stage consumer experience, resellers to distribute and provide technical support, and a sales force to sell to corporate consumers and provide referrals to the nearest resellers. Companies should try to achieve this most advanced degree of integration. In the Integrated Multi-Channel stage, the company and its channel partners creatively find new ways to serve the consumers without conflict.
- Nike and Chevron were under scrutiny from regulatory bodies for some of their practices in the developing world. Amazon.com or eBay were not profitable for the first few years of their existence. But the promise of returnability kept their shareholders from withdrawing their investments Communities of consumers will spread good word-of-mouth reviews about the company’s brand. Because customers share their satisfaction with other customers, the company’s advertising costs are significantly reduced. A company that demonstrates strong values will get support from employees and channel partners. Employee happiness will be high and their work productivity will be elevated. Companies will also save on hiring and retention costs. Because employees are living the values in their everyday work, the need for training is reduced and this is another cost saving. Employees perform better in their interactions with customers and this reduces the costs associated with customer complaints. Moreover, channel partners are more supportive and less likely to try to force higher channel remuneration.