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The way to sustainable…
MARKETING 3.0
Parts retold by nudeJEH
www.nudejeh.com
www.facebook.com/nudeJEH
This slide set has been created to share some parts of “Marketing 3.0”; selected,
digested and retold from the book by Philip Kotler, Hermawan Kartajaya, Iwan Setiawan
and various slide presentations on the same topic by Philip Kotler, Hermawan Kartajaya,
Richard Meyer.
It’s meant to inspire people, hoping that we should practice “Marketing 3.0” more,
as it’s the only way to ‘sustainable’ branding, marketing, and making our world a better
place.
Thank you
Pradhana Chariyavilaskul
Brand idea & love Inspirer
nudeJEH Co., Ltd.
Bangkok, Thailand
Within five years, if you run your
business in the same way as you do
now, you’re going to be out of
business.
Philip Kotler
“
.”
MARKETING’S LOSS OF EFFECTIVENESS
MARKETING will be less
effective in the next few
years
Marketing budgets will be
lower
Companies will want
marketers to do more with
less
DISTRIBUTORS
TRADITIONAL
MEDIA
COMPETITION
SOCIAL MEDIA
NETWORKS
PUBLIC
 DISTRIBUTORS will
demand more TRADE
PROMOTION. This will
leave less money for
marketing research,
advertising and consumer
promotion for brand
building and ultimately
reduce brand equity.
 Investors will then
downgrade the stock.
This will leave the
company with fewer
resources to prop up
demand.
 This is a VICIOUS
CIRCLE
 Traditional media such
as TV 30-second spots,
newspapers, etc., are
growing LESS
EFFECTIVE
 Categories are so
crowded with
competitors that
heavy price cutting
will be UNAVOIDABLE
 The public, in its wish
to spend less, will be
less inclined to pay
higher prices for top
brands where the
quality differences are
minimal. There is a
strong shift to store
brands and sub-
brands. This means
that top brands are
overvalued and there
may be a brand
bubble.
 Social media networks
will play an
increasingly influential
role in shaping brand
evaluations
Our lives from now on…
Competition Convention
“Dead – End”
Controlled Media less power
Social Media more power
People don’t see the value in
minimal differences
People believe strangers in
community, not ad or company
People don’t pay more for brand
The Business Doom
It’s time to evolve…
From Products
to Customers
to the Human Spirit
MARKETING 3.0
why
MARKETING 3.0?
It’s about our lives and our world!
THE KEY SHIFTS AROUND MARKETING 3.0
1. The World
2. The Marketing3. The Brand
4. The Company
5. The Communication
(to win Consumers )
1. The World
3 Forces shaping & leading to Marketing 3.0
Technology
Market
Political-
Legal
Socio-
CultureEconomy
Technology
Market
Political-
Legal
Socio-
CultureEconomy
1. The Age of Participation
and Collaborative Marketing
2. The Age of Globalisation Paradox
and Cultural Marketing
3. The Age of Creative Society
and Human Spirit Marketing
New wave technology facilitates the widespread dissemination
of information, ideas, and public opinion that enable
consumers to collaborate for value creation
Technology drives globalisation of the political and legal,
economy, and social culture landscape, which creates cultural
paradoxes in the society. People have more anxieties & desires
Technology also drives the rise of the creative market,
which is more spiritual in viewing the world.
1. The Age of Participation and Collaborative Marketing
Marketing 2.0
Managers listened to
the consumers’
voices to understand
their minds and
capture market
insights
Marketing 3.0
Consumers play the
key role of creating
the value through co-
creation of product
and service
2. The Age of Globalisation Paradox and Cultural Marketing
Globalisation
Democracy finding more global roots
Economic Integration
Universal global culture
Paradox
China, nondemorcratic, grows in power
Economic Inequality (poorer = worse)
Stronger traditional culture/tribalism
Information
Technology
•Info exchange
•Nations, Corporations,
Individuals
•Around the World
Transportation
Technology
•Trade & physical
exchange
•in global value chains
Globalisation
Connects the world But Creates Paradoxes
Impact on Consumers’ Anxiety & Desire
Anxiety: greater awareness and concern about poverty, injustice, environmental
sustainability, community responsibility, and social purpose.
Desire: To make their society – and the world at large – a better and ideal place to live in
What means to Marketers?
Address the Anxiety & Desire
Share the same dream
Make a difference
3. The Age of Creative Society and Human Spirit Marketing
The social development in human civilisation
(Daniel Pink, The Whole New Mind)
Reliance on muscles
(farmer, blue-collar)
White Collar
(left-brainers)
Creative People
(right-brainers)
They shape the world
Seek to improve the world
Search for meaning, happiness and
spiritual realisation (top of Maslow’s)
Their role is dominant
Hubs who connect consumers
Lifestyles/Attitudes Influence
Technology & Culture Influence
Impact on Consumers’ Requirement
Products & Services satisfy their needs + Experiences touch their spiritual side
What means to Marketers?
Supplying “spiritual meaning” is the future value proposition in marketing
Value-Driven Business Model
MARKETING 3.0
Collaborative, Cultural, Spiritual
People try to manage these paradoxes by
1. searching for a sense of continuity in their lives
2. searching for connection with others, blending into their local community and society
3. searching for direction as people start to join together to support social causes.
It is the more sophisticated form of the consumer-centric
Marketing Era where the consumer demands more
collaborative, cultural, and spiritual marketing approaches.
MARKETING 3.0
The Building Blocks
1. The Age of Participation
“The Stimulus”
2. The Age of Globalisation Paradox
“The Problem”
3. The Age of Creative Society
“The Solution”
Collaborative
Marketing
Cultural
Marketing
Spiritual
Marketing
WHAT to offer
‘content’
WHAT to offer
‘context’
HOW to offer
2. The Marketing
3C’s : The Future of Marketing
Marketing must EVOLVE!
Customer
Management
Evolution of Marketing Concepts
Brand
Management
Value
Management
Product
Management
1950s 1970s 1990s 2010s….
The 4 P’s
(Product, Price, Place,
Promotion)
The STP
(Segmentation, Targeting,
Positioning)
Brand Building
Co-Creation Communitisation Character Building
Value
Management
Today
Future
The Disciplines of Marketing
Co-Creation Communitisation Character
3 Cornerstones
in the Future of Marketing
Consumers increasingly appreciate
Co-creation, Communitisation, and Character
co-create their own
products and experiences…
…in their own communities
where they gather in…
…and only look outside of
their community for
admirable characters
Co-Creation
Creating
Product &
Experience
Companies
Consumers
Suppliers
Channel
Partners
Collaboration
Collaboration
Collaboration
Collaboration
Key Process of Co-Creation
The Evolution of Relationship
C.K. Prahalad and M.S. Krishnan, The New Age of Innovation: Driving Co‐created Value Through Global Networks, New York: McGraw‐Hill, 2008
Communitisation
The Fact of Community & Company
Consumers want to be
connected to other
consumers, not to
companies
Communities exist not
to serve the business but to
service the members
The only thing companies should do is to help consumers connect to one
another in communities and support members & communities.
Business Success requires
the support of
communities
Types of Community
Seth Godin, Tribes: We Need You to Lead Us, New York: Portfolio, 2008
Susan Fournier and Lara Lee, “Getting Brand Communities Right”, Harvard Business Review, April 2009
POOLS
-Consumers share the same values
though they don’t necessarily interact
-They are primarily Brand Enthusiats
-What only keep them is their belief and
strong affiliation to a brand
WEBS
-Consumers interact with one another
through social media on one-to-one basis
HUBS
-Consumers gravitate around a strong
figure and create a loyal fan base
consumers are either connected to an idea (POOLS), to one another (WEBS), to a leader (HUBS)
Character
For brands to be able to
connect with human beings
Brands need an ‘authentic DNA’
that reflects identity in
consumers’ social networks
James H. Gilmore and B. Joseph Pine II, Authenticity: What Consumers Really Want, Boston: Harvard Business School Press, 2007
Companies should always try to be real and deliver experiences that live up to what they claim.
They should not try to only appear real in the advertising or they will instantly lose credibility.
In the horizontal world of consumers, losing credibility means losing the whole network of
potential buyers.
Authentic Differentiation
Unique DNAs
Brand Character built up
throughout Life
“
.”
Co-Creation Communitisation Character
3 Cornerstones
in the Future of Marketing
Consumers always doubt about “Character” as they know that good
characters are scarce outside their communities.
But once they find one, they will instantly be loyal evangelists.
Consumers increasingly appreciate
Co-creation, Communitisation, and Character
co-create their own
products and experiences…
…in their own communities
where they gather in…
…and only look outside of
their community for
admirable characters
Brand must become a good character
3. The Brand
Shift to Human Spirit
MARKETING 3.0
The Building Blocks
Collaborative
Marketing
Cultural
Marketing
Spiritual
Marketing
Co-Creation Communitisation Character
3 Cornerstones
Future of Marketing
In order to stay relevant in Marketing 3.0,
companies should always target the consumers as human beings.
According to Stephen Covey, a whole human has four basic components: a
physical body, a mindcapable of independent thought and analysis,
a heartwhich can feel emotion,
and a spirit—your soul or philosophical center
Companies are competing to be seen as providing
continuity, connection, and direction
Product-centric
Marketing
Customer-oriented
Marketing
Value-driven
Marketing
Objective
Enabling Forces
How companies see
the market
Key marketing
concept
Company marketing
guidelines
Value propositions
Interaction with
consumers
MARKETING 1.0 MARKETING 2.0 MARKETING 3.0
Sell products
Economic-Value
Satisfy and retain the
consumers
People-Value
Make the world a better
place
Environment-Value
Industrial Revolution Information Technology New Wave Technology
Mass Buyers with
Physical Needs
Smarter Consumer with
Mind and Heart
Whole Human with
Mind, Heart, and Spirit
Product development Differentiation Values
Product specification
Corporate and Product
Positioning
Corporate , Vision,
Values
Functional
Functional and
Emotional
Functional, Emotional,
and Spiritual
One-to-Many
Transaction
One-to-One
Relationship
Many-to-Many
Collaboration
From Marketing 1.0 to 2.0 and 3.0
Mind Heart Spirit
No longer are consumers only looking for “functional
and emotional fulfillment”.
They are also looking for “human spirit
fulfillment” in the products and services they
choose.
Consumers want to know that the values of the
company they buy from are congruent to
making the world a better place.
We should see & target consumer as a whole human who consists of mind, heart, and spirit
MARKETING 3.0 : consumer as a whole human
Positioning Experiential
Branding
Emotional
Branding
Lovemarks
Mind
Heart
Spirit
MARKETING 3.0
MARKETING REDEFINED : The 3i Model
Marketing should be redefined as a consonant
triangle of brand, positioning, and differentiation
To complete the triangle, we introduce the 3i: brand identity, brand
integrity, and brand image.
MARKETING REDEFINED : The 3i Model
A brand should be
clearly positioned in
the consumer’s
mind to give it a
clear Brand Identity
1
To give Brand
Integrity to your
positioning, it must
be supported by
strong differentiation
2
Positioning supported
by strong differentiation
will in turn lead to
strong Brand Image
3
“Marketers should target consumers minds and spirits simultaneously
to touch their hearts.” – Philip Kotler
MARKETING REDEFINED : The 3i Model
A brand should be
clearly positioned in
the consumer’s
mind to give it a
clear Brand Identity
1
To give Brand
Integrity to your
positioning, it must
be supported by
strong differentiation
2
Positioning supported
by strong differentiation
will in turn lead to
strong Brand Image
3
“Marketers should target consumers minds and spirits simultaneously
to touch their hearts.” – Philip Kotler
Positioning will
trigger the mind to
consider a buying
decision
An authentic
differentiation for the
human spirit
to confirm the decision
Finally the heart will lead
a consumer to act and
make the buying decision
The 3i Model: Definition
Brand Integrity is about fulfilling what is claimed
through the positioning and differentiation of
the brand. It is about being credible, fulfilling
your promise, and establishing consumers’ trust
in your brand. The target of brand integrity is the
spirit of the consumers.
Brand Identity is about positioning
your brand in the minds of the
consumers.
The positioning should be unique
for your brand to be heard and
noticed in the cluttered
marketplace.
It should also be relevant to the
rational needs and wants of the
consumers.
Brand Image is about
acquiring a strong share of
the consumer’s emotions.
Your brand value should
appeal to consumers’
emotional needs and wants
beyond product
functionalities and features.
Brand is useless if it only
articulates its positioning; the
triangle is not complete
without the differentiation
Differentiation is the brand’s
DNA that reflects the
true integrity of the brand. It
is a solid proof that a brand
is delivering its promised
performance and satisfaction
to its customers
Only a complete triangle is a credible one in Marketing 3.0
The 3i model is also very relevant for marketing in the context of social media.
In the era of consumer empowerment led by abundant
information and networked communities,
a consonant brand-positioning-differentiation is all you need.
When word-of-mouth
becomes the new
advertising medium
and consumers believe
strangers within their
community more
than they believe
companies,
there is no chance for
inauthentic brands to
survive
In social media, a brand is like a member.
The brand identity is rated by accumulation of
experience within the community. One bad
experience will spoil your brand integrity and destroy
your brand image in the community.
Marketing 3.0 is the era of
horizontal communication where
vertical control will not work.
Just be true to your Brand’s 3i
only
honesty,
originality,
authenticity
will.
The good example of solid Brand Integrity
It is well-known for its
“Path of Service”
the community volunteer
service program that involves
employees of Timberland.
The differentiation is already proven since it
stands the test of time. In 1994, the company’s
net profits fell from $22.5 million to $17.7
million. The following year, sales stayed
stagnant, and the company posted an earnings
loss for the very first time. Many people
predicted that the Path of Service program
would be eliminated under such
circumstances. But Timberland’s leaders
believed that community volunteer service is
an integral part of the corporate DNA that
makes the brand different and authentic.
Therefore, the program continues to
this day.
Marketing 3.0 (part retold) in 60 slides
Earthkeeping means taking actions that enable us to be good stewards of the earth
Earthkeeping is the way we make our products
Earthkeeping is using renewable energy in our facilities
Earthkeeping is the more than one million trees we’ve planted around the world
Earthkeeping is how we take a stand on issues that affect the environment, like climate change.
At the end of the day, we believe Earthkeeping will help us create better gear for you.
And help protect the outdoors we all love.
We’re focused on the Timberland forest in the Horgin Desert of China to help prevent sandstorms and
desertification.
And our tree-planting efforts in Haiti will help provide fruit, fuel and shelter, stimulate the economy
and strengthen the soil where they grow.
We’ve even started offering tree certificates you can purchase to help make a difference, too.
4. The Company
Shift to Values-Driven Marketing
To be able to target their minds, hearts, and spirits,
marketers need to identify the anxieties and desires of the consumers.
In the globalization paradox, they are
to make their society and the world a better,
even an ideal place to live.
The Company should share the same dream with consumers and make a difference
Should include good deeds in a corporate culture and maintain commitment
By embedding them into the Company’s Mission, Vision and Values
(current & future
customers)
(current & future
shareholders)
(current & future
employees)
MARKETING 3.0: Value-Based Marketing (VBM)
Individual
Company
Mind
Heart
Spirit
Mission
(Why)
Vision
(What)
Values
(How)
Philip Kotler
VBM guides a company in utilising their
Mission to answer the “why-question”,
Vision to answer the “what-question”
Values to answer the “how-question”
for all three dimensions of mind, heart and spirit.
MARKETING 3.0: Value-Based Marketing (VBM)
Individual
Company
Mind
Heart
Spirit
Mission
(Why)
Vision
(What)
Values
(How)
Mission is the company’s reason for being; reflects the company’s basic purpose
for existence. A company should characterize its mission as fundamentally as
possible, as it will determine the sustainability of the company.
In the doughnut view of life, the core is fixed and the bounded space around the
core is flexible. The company’s mission is the core which cannot be changed. The
operations of the company are flexible but should be aligned with the core.
While mission is firmly rooted in the present, Vision is about inventing the future.
Vision is a picture of the desirable future state of the organization; explains what
you aspire to become, to achieve, to create. It is symbolized by a compass
that guides you to the future state of the organization.
Values is “a corporation’s institutional standards of behavior.” Companies
generally follow the same values cycle which articulates a set of corporate
priorities and management attempts to embed them in its practices, reinforcing
behaviors that benefit the company and communities inside and outside the firm,
and which in turn strengthen the institution’s values. It is symbolized as a wheel.
MARKETING 3.0: Value-Based Marketing (VBM)
Individual
Company
Mind
Heart
Spirit
Mission
(Why)
Vision
(What)
Values
(How)
Deliver
SATISFACTION
PROFITability
Be BETTER
Realise
ASPIRATION
RETURNability
DIFFERENT
Practice
COMPASSION
SUSTAINability
Make a
DIFFERENCE
(current & future
customers)
(current & future
shareholders)
(current & future
employees)
The Example: Value-Based Marketing (VBM)
Individual
Company
Mind
Heart
Spirit
Mission
“Make it Better”
Vision
To be 21st Century
example for socially-
responsible
corporations around
the world
Values
Humanity
Humility
Integrity
Excellence
High quality
products
Profit growth
“at our corporate HQs,
employees work hard
to make some of the
world’s most
innovative products”
Outdoor
store design
Stock
performance
Fortune 100 Best
Companies to
Work For
“Make it
Better”
Sustainability
KPIs
Path of
Service
(current & future
customers)
(current & future
shareholders)
(current & future
employees)
Timberland is a leader in the design, engineering and marketing of premium quality footwear, apparel and accessories
for outdoor consumers. It believes in “doing well by doing good.”
Timberland has a simple mission of making its products better.
It delivers customer satisfaction through its quality products and fosters emotional experiences through store design,
for example.
To target the spirit, it includes the mission as a tagline.
Timberland uses recycled materials, non‐chemical substances as much as possible, made in energy‐saving factories.
The label gives consumers information “about the product they are purchasing, including where it was manufactured,
how it was produced, and its effect on the environment”.
On Earth Day, Timberland plants a tree on behalf of each consumer who spends $150
Timberland has the vision to be the twenty-first-century example of a socially responsible corporation around the
world. It shows a remarkable achievement for its vision over the past years and can use the achievement to market the
company to shareholders.
Rationally, the vision is shown by the profit growth the company is enjoying.
Emotionally, it I sshown by the impressive stock performance.
Spiritually, it is shown by the Sustainability Key Performance Indicators.
For its employees, Timberland builds the values of humanity, humility, integrity, and excellence.
It demonstrates these values to the employees through various efforts.
The most important one is the Path of Service, which provides the opportunity for employees to practice the values.
Its employees have contributed over 200,000 total hours of service that benefited over 200 community organizations
in 13 countries, 26 states and 73 cities.
Timberland offers $3,000 incentives to employees who purchase hybrid cars.
Explanation
5. The Communication
Consumers are the new Brand Owners!
To Communicate the mission to consumers…
is always about change, transformation,
and making a difference.
Marketing 3.0 is about changing
the way consumers do things in their lives.
When a brand brings transformation, consumers will
unconsciously accept the brand as part of their daily lives.
Business
As
Unusual
Story
Consumer
Empowerment
“Creating”
starts with “Business as
Unusual” a new business
perspective that can transform
the lives of consumers, the
small ideas that can make a big
difference
“Spreading”
The best approach to spread
the idea is through storytelling
around the ideas and engage
with people’s emotions
Characters are
central in a story.
They symbolize how
the brand is
perceived by the
human spirit
Plot shows how
the character
navigates among
the network of
humans who will
rewrite their own
version of the story
Metaphor are
the unconscious
process happening
in the
human spirit
“Realising”
To convince consumers that
stories are authentic and belong
to them, engage them in
conversation, especially ‘many-
to-many’. Conversation is the
new advertising.
Consumer will feel it’s their
responsibility to fulfill the
Mission too and this is the key to
make a difference
The Communication: The 3 Principles
MARKETING 3.0
The 10 Credo’s
The Bonus…
Philip Kotler
MARKETING 3.0: The 10 Credo’s
Philip Kotler
1. Love your customers, Respect your competitors
MARKETING 3.0: The 10 Credo’s
Philip Kotler
2. Be sensitive to change, be ready to transform
MARKETING 3.0: The 10 Credo’s
Philip Kotler
3. Guard your name, be clear about who you are
MARKETING 3.0: The 10 Credo’s
Philip Kotler
4. Customers are diverse, go first to those who can benefit from you
MARKETING 3.0: The 10 Credo’s
Philip Kotler
5. Always offer a good package at a fair price
MARKETING 3.0: The 10 Credo’s
Philip Kotler
6. Always make yourself available, spread the good news
MARKETING 3.0: The 10 Credo’s
Philip Kotler
7. Get customers, keep them, grow them
MARKETING 3.0: The 10 Credo’s
Philip Kotler
8. Whatever your business, it’s service business now
MARKETING 3.0: The 10 Credo’s
Philip Kotler
9. Always refine your business process
MARKETING 3.0: The 10 Credo’s
Philip Kotler
10. Gather relevant information,
but use wisdom in making decision

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Marketing 3.0 (part retold) in 60 slides

  • 1. The way to sustainable… MARKETING 3.0 Parts retold by nudeJEH www.nudejeh.com www.facebook.com/nudeJEH
  • 2. This slide set has been created to share some parts of “Marketing 3.0”; selected, digested and retold from the book by Philip Kotler, Hermawan Kartajaya, Iwan Setiawan and various slide presentations on the same topic by Philip Kotler, Hermawan Kartajaya, Richard Meyer. It’s meant to inspire people, hoping that we should practice “Marketing 3.0” more, as it’s the only way to ‘sustainable’ branding, marketing, and making our world a better place. Thank you Pradhana Chariyavilaskul Brand idea & love Inspirer nudeJEH Co., Ltd. Bangkok, Thailand
  • 3. Within five years, if you run your business in the same way as you do now, you’re going to be out of business. Philip Kotler “ .”
  • 4. MARKETING’S LOSS OF EFFECTIVENESS MARKETING will be less effective in the next few years Marketing budgets will be lower Companies will want marketers to do more with less DISTRIBUTORS TRADITIONAL MEDIA COMPETITION SOCIAL MEDIA NETWORKS PUBLIC  DISTRIBUTORS will demand more TRADE PROMOTION. This will leave less money for marketing research, advertising and consumer promotion for brand building and ultimately reduce brand equity.  Investors will then downgrade the stock. This will leave the company with fewer resources to prop up demand.  This is a VICIOUS CIRCLE  Traditional media such as TV 30-second spots, newspapers, etc., are growing LESS EFFECTIVE  Categories are so crowded with competitors that heavy price cutting will be UNAVOIDABLE  The public, in its wish to spend less, will be less inclined to pay higher prices for top brands where the quality differences are minimal. There is a strong shift to store brands and sub- brands. This means that top brands are overvalued and there may be a brand bubble.  Social media networks will play an increasingly influential role in shaping brand evaluations
  • 5. Our lives from now on… Competition Convention “Dead – End” Controlled Media less power Social Media more power People don’t see the value in minimal differences People believe strangers in community, not ad or company People don’t pay more for brand The Business Doom
  • 6. It’s time to evolve…
  • 7. From Products to Customers to the Human Spirit MARKETING 3.0
  • 8. why MARKETING 3.0? It’s about our lives and our world!
  • 9. THE KEY SHIFTS AROUND MARKETING 3.0 1. The World 2. The Marketing3. The Brand 4. The Company 5. The Communication (to win Consumers )
  • 10. 1. The World 3 Forces shaping & leading to Marketing 3.0
  • 12. Technology Market Political- Legal Socio- CultureEconomy 1. The Age of Participation and Collaborative Marketing 2. The Age of Globalisation Paradox and Cultural Marketing 3. The Age of Creative Society and Human Spirit Marketing New wave technology facilitates the widespread dissemination of information, ideas, and public opinion that enable consumers to collaborate for value creation Technology drives globalisation of the political and legal, economy, and social culture landscape, which creates cultural paradoxes in the society. People have more anxieties & desires Technology also drives the rise of the creative market, which is more spiritual in viewing the world.
  • 13. 1. The Age of Participation and Collaborative Marketing Marketing 2.0 Managers listened to the consumers’ voices to understand their minds and capture market insights Marketing 3.0 Consumers play the key role of creating the value through co- creation of product and service
  • 14. 2. The Age of Globalisation Paradox and Cultural Marketing Globalisation Democracy finding more global roots Economic Integration Universal global culture Paradox China, nondemorcratic, grows in power Economic Inequality (poorer = worse) Stronger traditional culture/tribalism Information Technology •Info exchange •Nations, Corporations, Individuals •Around the World Transportation Technology •Trade & physical exchange •in global value chains Globalisation Connects the world But Creates Paradoxes Impact on Consumers’ Anxiety & Desire Anxiety: greater awareness and concern about poverty, injustice, environmental sustainability, community responsibility, and social purpose. Desire: To make their society – and the world at large – a better and ideal place to live in What means to Marketers? Address the Anxiety & Desire Share the same dream Make a difference
  • 15. 3. The Age of Creative Society and Human Spirit Marketing The social development in human civilisation (Daniel Pink, The Whole New Mind) Reliance on muscles (farmer, blue-collar) White Collar (left-brainers) Creative People (right-brainers) They shape the world Seek to improve the world Search for meaning, happiness and spiritual realisation (top of Maslow’s) Their role is dominant Hubs who connect consumers Lifestyles/Attitudes Influence Technology & Culture Influence Impact on Consumers’ Requirement Products & Services satisfy their needs + Experiences touch their spiritual side What means to Marketers? Supplying “spiritual meaning” is the future value proposition in marketing Value-Driven Business Model
  • 16. MARKETING 3.0 Collaborative, Cultural, Spiritual People try to manage these paradoxes by 1. searching for a sense of continuity in their lives 2. searching for connection with others, blending into their local community and society 3. searching for direction as people start to join together to support social causes. It is the more sophisticated form of the consumer-centric Marketing Era where the consumer demands more collaborative, cultural, and spiritual marketing approaches.
  • 17. MARKETING 3.0 The Building Blocks 1. The Age of Participation “The Stimulus” 2. The Age of Globalisation Paradox “The Problem” 3. The Age of Creative Society “The Solution” Collaborative Marketing Cultural Marketing Spiritual Marketing WHAT to offer ‘content’ WHAT to offer ‘context’ HOW to offer
  • 18. 2. The Marketing 3C’s : The Future of Marketing
  • 20. Customer Management Evolution of Marketing Concepts Brand Management Value Management Product Management 1950s 1970s 1990s 2010s…. The 4 P’s (Product, Price, Place, Promotion) The STP (Segmentation, Targeting, Positioning) Brand Building Co-Creation Communitisation Character Building Value Management Today Future The Disciplines of Marketing
  • 21. Co-Creation Communitisation Character 3 Cornerstones in the Future of Marketing Consumers increasingly appreciate Co-creation, Communitisation, and Character co-create their own products and experiences… …in their own communities where they gather in… …and only look outside of their community for admirable characters
  • 22. Co-Creation Creating Product & Experience Companies Consumers Suppliers Channel Partners Collaboration Collaboration Collaboration Collaboration Key Process of Co-Creation The Evolution of Relationship C.K. Prahalad and M.S. Krishnan, The New Age of Innovation: Driving Co‐created Value Through Global Networks, New York: McGraw‐Hill, 2008
  • 23. Communitisation The Fact of Community & Company Consumers want to be connected to other consumers, not to companies Communities exist not to serve the business but to service the members The only thing companies should do is to help consumers connect to one another in communities and support members & communities. Business Success requires the support of communities Types of Community Seth Godin, Tribes: We Need You to Lead Us, New York: Portfolio, 2008 Susan Fournier and Lara Lee, “Getting Brand Communities Right”, Harvard Business Review, April 2009 POOLS -Consumers share the same values though they don’t necessarily interact -They are primarily Brand Enthusiats -What only keep them is their belief and strong affiliation to a brand WEBS -Consumers interact with one another through social media on one-to-one basis HUBS -Consumers gravitate around a strong figure and create a loyal fan base consumers are either connected to an idea (POOLS), to one another (WEBS), to a leader (HUBS)
  • 24. Character For brands to be able to connect with human beings Brands need an ‘authentic DNA’ that reflects identity in consumers’ social networks James H. Gilmore and B. Joseph Pine II, Authenticity: What Consumers Really Want, Boston: Harvard Business School Press, 2007 Companies should always try to be real and deliver experiences that live up to what they claim. They should not try to only appear real in the advertising or they will instantly lose credibility. In the horizontal world of consumers, losing credibility means losing the whole network of potential buyers. Authentic Differentiation Unique DNAs Brand Character built up throughout Life “ .”
  • 25. Co-Creation Communitisation Character 3 Cornerstones in the Future of Marketing Consumers always doubt about “Character” as they know that good characters are scarce outside their communities. But once they find one, they will instantly be loyal evangelists. Consumers increasingly appreciate Co-creation, Communitisation, and Character co-create their own products and experiences… …in their own communities where they gather in… …and only look outside of their community for admirable characters Brand must become a good character
  • 26. 3. The Brand Shift to Human Spirit
  • 27. MARKETING 3.0 The Building Blocks Collaborative Marketing Cultural Marketing Spiritual Marketing Co-Creation Communitisation Character 3 Cornerstones Future of Marketing In order to stay relevant in Marketing 3.0, companies should always target the consumers as human beings. According to Stephen Covey, a whole human has four basic components: a physical body, a mindcapable of independent thought and analysis, a heartwhich can feel emotion, and a spirit—your soul or philosophical center Companies are competing to be seen as providing continuity, connection, and direction
  • 28. Product-centric Marketing Customer-oriented Marketing Value-driven Marketing Objective Enabling Forces How companies see the market Key marketing concept Company marketing guidelines Value propositions Interaction with consumers MARKETING 1.0 MARKETING 2.0 MARKETING 3.0 Sell products Economic-Value Satisfy and retain the consumers People-Value Make the world a better place Environment-Value Industrial Revolution Information Technology New Wave Technology Mass Buyers with Physical Needs Smarter Consumer with Mind and Heart Whole Human with Mind, Heart, and Spirit Product development Differentiation Values Product specification Corporate and Product Positioning Corporate , Vision, Values Functional Functional and Emotional Functional, Emotional, and Spiritual One-to-Many Transaction One-to-One Relationship Many-to-Many Collaboration From Marketing 1.0 to 2.0 and 3.0 Mind Heart Spirit
  • 29. No longer are consumers only looking for “functional and emotional fulfillment”. They are also looking for “human spirit fulfillment” in the products and services they choose. Consumers want to know that the values of the company they buy from are congruent to making the world a better place.
  • 30. We should see & target consumer as a whole human who consists of mind, heart, and spirit MARKETING 3.0 : consumer as a whole human Positioning Experiential Branding Emotional Branding Lovemarks Mind Heart Spirit MARKETING 3.0
  • 31. MARKETING REDEFINED : The 3i Model Marketing should be redefined as a consonant triangle of brand, positioning, and differentiation To complete the triangle, we introduce the 3i: brand identity, brand integrity, and brand image.
  • 32. MARKETING REDEFINED : The 3i Model A brand should be clearly positioned in the consumer’s mind to give it a clear Brand Identity 1 To give Brand Integrity to your positioning, it must be supported by strong differentiation 2 Positioning supported by strong differentiation will in turn lead to strong Brand Image 3 “Marketers should target consumers minds and spirits simultaneously to touch their hearts.” – Philip Kotler
  • 33. MARKETING REDEFINED : The 3i Model A brand should be clearly positioned in the consumer’s mind to give it a clear Brand Identity 1 To give Brand Integrity to your positioning, it must be supported by strong differentiation 2 Positioning supported by strong differentiation will in turn lead to strong Brand Image 3 “Marketers should target consumers minds and spirits simultaneously to touch their hearts.” – Philip Kotler Positioning will trigger the mind to consider a buying decision An authentic differentiation for the human spirit to confirm the decision Finally the heart will lead a consumer to act and make the buying decision
  • 34. The 3i Model: Definition Brand Integrity is about fulfilling what is claimed through the positioning and differentiation of the brand. It is about being credible, fulfilling your promise, and establishing consumers’ trust in your brand. The target of brand integrity is the spirit of the consumers. Brand Identity is about positioning your brand in the minds of the consumers. The positioning should be unique for your brand to be heard and noticed in the cluttered marketplace. It should also be relevant to the rational needs and wants of the consumers. Brand Image is about acquiring a strong share of the consumer’s emotions. Your brand value should appeal to consumers’ emotional needs and wants beyond product functionalities and features. Brand is useless if it only articulates its positioning; the triangle is not complete without the differentiation Differentiation is the brand’s DNA that reflects the true integrity of the brand. It is a solid proof that a brand is delivering its promised performance and satisfaction to its customers Only a complete triangle is a credible one in Marketing 3.0
  • 35. The 3i model is also very relevant for marketing in the context of social media. In the era of consumer empowerment led by abundant information and networked communities, a consonant brand-positioning-differentiation is all you need.
  • 36. When word-of-mouth becomes the new advertising medium and consumers believe strangers within their community more than they believe companies, there is no chance for inauthentic brands to survive
  • 37. In social media, a brand is like a member. The brand identity is rated by accumulation of experience within the community. One bad experience will spoil your brand integrity and destroy your brand image in the community.
  • 38. Marketing 3.0 is the era of horizontal communication where vertical control will not work. Just be true to your Brand’s 3i only honesty, originality, authenticity will.
  • 39. The good example of solid Brand Integrity It is well-known for its “Path of Service” the community volunteer service program that involves employees of Timberland. The differentiation is already proven since it stands the test of time. In 1994, the company’s net profits fell from $22.5 million to $17.7 million. The following year, sales stayed stagnant, and the company posted an earnings loss for the very first time. Many people predicted that the Path of Service program would be eliminated under such circumstances. But Timberland’s leaders believed that community volunteer service is an integral part of the corporate DNA that makes the brand different and authentic. Therefore, the program continues to this day.
  • 41. Earthkeeping means taking actions that enable us to be good stewards of the earth Earthkeeping is the way we make our products Earthkeeping is using renewable energy in our facilities Earthkeeping is the more than one million trees we’ve planted around the world Earthkeeping is how we take a stand on issues that affect the environment, like climate change. At the end of the day, we believe Earthkeeping will help us create better gear for you. And help protect the outdoors we all love.
  • 42. We’re focused on the Timberland forest in the Horgin Desert of China to help prevent sandstorms and desertification. And our tree-planting efforts in Haiti will help provide fruit, fuel and shelter, stimulate the economy and strengthen the soil where they grow. We’ve even started offering tree certificates you can purchase to help make a difference, too.
  • 43. 4. The Company Shift to Values-Driven Marketing
  • 44. To be able to target their minds, hearts, and spirits, marketers need to identify the anxieties and desires of the consumers. In the globalization paradox, they are to make their society and the world a better, even an ideal place to live. The Company should share the same dream with consumers and make a difference Should include good deeds in a corporate culture and maintain commitment By embedding them into the Company’s Mission, Vision and Values
  • 45. (current & future customers) (current & future shareholders) (current & future employees) MARKETING 3.0: Value-Based Marketing (VBM) Individual Company Mind Heart Spirit Mission (Why) Vision (What) Values (How) Philip Kotler VBM guides a company in utilising their Mission to answer the “why-question”, Vision to answer the “what-question” Values to answer the “how-question” for all three dimensions of mind, heart and spirit.
  • 46. MARKETING 3.0: Value-Based Marketing (VBM) Individual Company Mind Heart Spirit Mission (Why) Vision (What) Values (How) Mission is the company’s reason for being; reflects the company’s basic purpose for existence. A company should characterize its mission as fundamentally as possible, as it will determine the sustainability of the company. In the doughnut view of life, the core is fixed and the bounded space around the core is flexible. The company’s mission is the core which cannot be changed. The operations of the company are flexible but should be aligned with the core. While mission is firmly rooted in the present, Vision is about inventing the future. Vision is a picture of the desirable future state of the organization; explains what you aspire to become, to achieve, to create. It is symbolized by a compass that guides you to the future state of the organization. Values is “a corporation’s institutional standards of behavior.” Companies generally follow the same values cycle which articulates a set of corporate priorities and management attempts to embed them in its practices, reinforcing behaviors that benefit the company and communities inside and outside the firm, and which in turn strengthen the institution’s values. It is symbolized as a wheel.
  • 47. MARKETING 3.0: Value-Based Marketing (VBM) Individual Company Mind Heart Spirit Mission (Why) Vision (What) Values (How) Deliver SATISFACTION PROFITability Be BETTER Realise ASPIRATION RETURNability DIFFERENT Practice COMPASSION SUSTAINability Make a DIFFERENCE (current & future customers) (current & future shareholders) (current & future employees)
  • 48. The Example: Value-Based Marketing (VBM) Individual Company Mind Heart Spirit Mission “Make it Better” Vision To be 21st Century example for socially- responsible corporations around the world Values Humanity Humility Integrity Excellence High quality products Profit growth “at our corporate HQs, employees work hard to make some of the world’s most innovative products” Outdoor store design Stock performance Fortune 100 Best Companies to Work For “Make it Better” Sustainability KPIs Path of Service (current & future customers) (current & future shareholders) (current & future employees)
  • 49. Timberland is a leader in the design, engineering and marketing of premium quality footwear, apparel and accessories for outdoor consumers. It believes in “doing well by doing good.” Timberland has a simple mission of making its products better. It delivers customer satisfaction through its quality products and fosters emotional experiences through store design, for example. To target the spirit, it includes the mission as a tagline. Timberland uses recycled materials, non‐chemical substances as much as possible, made in energy‐saving factories. The label gives consumers information “about the product they are purchasing, including where it was manufactured, how it was produced, and its effect on the environment”. On Earth Day, Timberland plants a tree on behalf of each consumer who spends $150 Timberland has the vision to be the twenty-first-century example of a socially responsible corporation around the world. It shows a remarkable achievement for its vision over the past years and can use the achievement to market the company to shareholders. Rationally, the vision is shown by the profit growth the company is enjoying. Emotionally, it I sshown by the impressive stock performance. Spiritually, it is shown by the Sustainability Key Performance Indicators. For its employees, Timberland builds the values of humanity, humility, integrity, and excellence. It demonstrates these values to the employees through various efforts. The most important one is the Path of Service, which provides the opportunity for employees to practice the values. Its employees have contributed over 200,000 total hours of service that benefited over 200 community organizations in 13 countries, 26 states and 73 cities. Timberland offers $3,000 incentives to employees who purchase hybrid cars. Explanation
  • 50. 5. The Communication Consumers are the new Brand Owners!
  • 51. To Communicate the mission to consumers… is always about change, transformation, and making a difference. Marketing 3.0 is about changing the way consumers do things in their lives. When a brand brings transformation, consumers will unconsciously accept the brand as part of their daily lives.
  • 52. Business As Unusual Story Consumer Empowerment “Creating” starts with “Business as Unusual” a new business perspective that can transform the lives of consumers, the small ideas that can make a big difference “Spreading” The best approach to spread the idea is through storytelling around the ideas and engage with people’s emotions Characters are central in a story. They symbolize how the brand is perceived by the human spirit Plot shows how the character navigates among the network of humans who will rewrite their own version of the story Metaphor are the unconscious process happening in the human spirit “Realising” To convince consumers that stories are authentic and belong to them, engage them in conversation, especially ‘many- to-many’. Conversation is the new advertising. Consumer will feel it’s their responsibility to fulfill the Mission too and this is the key to make a difference The Communication: The 3 Principles
  • 53. MARKETING 3.0 The 10 Credo’s The Bonus… Philip Kotler
  • 54. MARKETING 3.0: The 10 Credo’s Philip Kotler 1. Love your customers, Respect your competitors
  • 55. MARKETING 3.0: The 10 Credo’s Philip Kotler 2. Be sensitive to change, be ready to transform
  • 56. MARKETING 3.0: The 10 Credo’s Philip Kotler 3. Guard your name, be clear about who you are
  • 57. MARKETING 3.0: The 10 Credo’s Philip Kotler 4. Customers are diverse, go first to those who can benefit from you
  • 58. MARKETING 3.0: The 10 Credo’s Philip Kotler 5. Always offer a good package at a fair price
  • 59. MARKETING 3.0: The 10 Credo’s Philip Kotler 6. Always make yourself available, spread the good news
  • 60. MARKETING 3.0: The 10 Credo’s Philip Kotler 7. Get customers, keep them, grow them
  • 61. MARKETING 3.0: The 10 Credo’s Philip Kotler 8. Whatever your business, it’s service business now
  • 62. MARKETING 3.0: The 10 Credo’s Philip Kotler 9. Always refine your business process
  • 63. MARKETING 3.0: The 10 Credo’s Philip Kotler 10. Gather relevant information, but use wisdom in making decision