Marketing 4.0 Moving from Traditional to Digital PDF is the much-needed handbook for next-generation marketing. Written by the world’s leading marketing authorities, this book helps you navigate the increasingly connected world and changing consumer landscape to reach more customers, more effectively.
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Marketing 4.0: Moving from Traditional to Digital is the much-needed handbook for next-generation marketing. Written by the world’s leading marketing authorities, this book helps you navigate the increasingly connected world and changing consumer landscape to reach more customers, more effectively. Today’s customers have less time and attention to devote to your brand―and they are surrounded by alternatives every step of the way. You need to stand up, get their attention, and deliver the message they want to hear. This book examines the marketplace’s shifting power dynamics, the paradoxes wrought by connectivity, and the increasing sub-culture splintering that will shape tomorrow’s consumer; this foundation shows why Marketing 4.0 is becoming imperative for productivity, and this book shows you how to apply it to your brand today.
Marketing 4.0 takes advantage of the shifting consumer mood to reach more customers and engage them more fully than ever before. Exploit the changes that are tripping up traditional approaches, and make them an integral part of your methodology. This book gives you the world-class insight you need to make it happen.
- Discover the new rules of marketing
- Stand out and create WOW moments
- Build a loyal and vocal customer base
- Learn who will shape the future of customer choice
Every few years brings a “new” marketing movement, but experienced marketers know that this time its different; it’s not just the rules that have changed, it’s the customers themselves. Marketing 4.0 provides a solid framework based on a real-world vision of the consumer as they are today, and as they will be tomorrow. Marketing 4.0 gives you the edge you need to reach them more effectively than ever before.
FROM MARKETING 3.0 TO MARKETING 4.0
For the past six years, marketers whom we met around the world have been asking for a sequel to Marketing 3.0. Considering the dynamics of marketing, many would expect Marketing 4.0 to be in the pipeline.
In Marketing 3.0, we talked about the major shift from product driven marketing (1.0) to customer-centric marketing (2.0), and ultimately to human-centric marketing (3.0). In Marketing 3.0, we observed customers transforming into whole human beings with minds, hearts, and spirits. Therefore, we argued that the future of marketing lies in creating products, services, and company cultures that embrace and reflect human values. Since the book was published in 2010, many marketers have been adopting the principles of Marketing 3.0. The book was so universally accepted that it has been translated into 24 languages besides English globally.
A year after the book was published, we built the Museum of Marketing 3.0 in Ubud, Bali. The museum was built with the kind support of the three princes of Ubud: Tjokorda Gde Putra Sukawati, Tjokorda Gde Oka Sukawati, and Tjokorda Gde Raka Sukawati. Ubud, with its aura of spirituality, is indeed the perfect place for the first marketing museum of its kind. In the museum, we have been curating inspiring cases of marketers, companies, and marketing campaigns that embrace the human spirit. The contents are organized in a modern multiscreen setup. In recent years, the museum has been upgraded with advanced technologies such as augmented reality and virtual reality.
Indeed, a lot has happened since we wrote Marketing 3.0, especially in terms of technological advancements. The technologies we are seeing today are not new. But they have been converging in recent years, and the collective impact of that convergence has greatly affected marketing practices around the world. New trends are emerging from this: the “sharing” economy, the “now” economy, omnichannel integration, content marketing, social CRM, and many other things. We believe that the technology convergence will ultimately lead to the convergence between digital marketing and traditional marketing. In a high-tech world, people long for high touch. The more social we are, the more we want things that are made just for us. Backed by big-data analytics, products become more personalized and services become more personal. In the digital economy, the key is to leverage these paradoxes.
In this transitional era, a new marketing approach is required. Thus, we introduce Marketing 4.0 as the natural outgrowth of Marketing 3.0. The major premise of this book is that marketing should adapt to the changing nature of customer paths in the digital economy. The role of marketers is to guide customers throughout their journey from awareness and ultimately to advocacy.
The first part of the book is the result of our observation of the world we are living in. We start by embracing the three power shifts that are shaping our world. We move further by exploring how connectivity has fundamentally changed human lives. Moreover, we take a deeper look into the major digital subcultures of youth, women, and netizens that will serve as foundations for a completely new breed of customer.
The second and core part of the book discusses how marketers can boost productivity by understanding customer paths in the digital era. It introduces a new set of marketing metrics and a whole new way of looking at our marketing practices. We will also dive deep into several key industries and learn how to implement the ideas of Marketing 4.0 in those industries.
Finally, the third part describes in detail the major tactics of Marketing 4.0. We start with human-centric marketing, which aims to humanize brands with humanlike attributes. We then explore content marketing in greater detail in order to create customer conversations.
Moreover, we also describe how marketers can implement omnichannel marketing for higher sales. Finally, we dig into the concept of customer engagement in the digital era.
In essence, Marketing 4.0 describes a deepening and a broadening of human-centric marketing to cover every aspect of the customer’s journey. We are hopeful that you will find insights and inspirations from this book and join us in redefining marketing in the years to come.
Table of Contents- Marketing 4.0 Moving from Traditional to Digital PDF
Prologue: From Marketing 3.0 to Marketing 4.0 xv
About the Authors xix
Part I FUNDAMENTAL TRENDS SHAPING MARKETING
1 Power Shifts to the Connected Customers 3
From Exclusive to Inclusive 7
From Vertical to Horizontal 10
From Individual to Social 13
Summary: Horizontal, Inclusive, and Social 14
2 The Paradoxes of Marketing to Connected Customers 17
Breaking the Myths of Connectivity 20
Summary: Marketing amid Paradoxes 28
3 The Influential Digital Subcultures 29
Youth: Acquiring the Mind Share 32
Women: Growing the Market Share 35
Netizens: Expanding the Heart Share 37
Summary: Youth, Women, and Netizens 40
4 Marketing 4.0 in the Digital Economy 43
Moving from Traditional to Digital Marketing 47
Integrating Traditional and Digital Marketing 52
Summary: Redefining Marketing in the
Digital Economy 53
Part II NEW FRAMEWORKS FOR MARKETING IN THE DIGITAL ECONOMY
5 The New Customer Path 57
Understanding How People Buy: From Four A’s to Five A’s 60
Driving from Awareness to Advocacy: The O Zone (O3) 66
Summary: Aware, Appeal, Ask, Act, and Advocate 69
6 Marketing Productivity Metrics 71
Introducing PAR and BAR 74
Decomposing PAR and BAR 75
Driving Up Productivity 80
Summary: Purchase Action Ratio and Brand Advocacy Ratio 90
7 Industry Archetypes and Best Practices 91
Four Major Industry Archetypes 94
Four Marketing Best Practices 100
Summary: Learning from Different Industries 104
Part III TACTICAL MARKETING APPLICATIONS IN THE DIGITAL ECONOMY
8 Human-Centric Marketing for Brand Attraction 107
Understanding Humans Using Digital Anthropology 110
Building the Six Attributes of Human-Centric Brands 113
Summary: When Brands Become Humans 118
9 Content Marketing for Brand Curiosity 119
Content Is the New Ad, #Hashtag Is the New Tagline 121
Step-by-Step Content Marketing 124
Summary: Creating Conversations with Content 134
10 Omnichannel Marketing for Brand Commitment 137
The Rise of Omnichannel Marketing 139
Step-by-Step Omnichannel Marketing 145
Summary: Integrating the Best of Online and Offline Channels 149
11 Engagement Marketing for Brand Affinity 151
Enhancing Digital Experiences with Mobile Apps 153
Providing Solutions with Social CRM 156
Driving Desired Behavior with Gamification 160
Summary: Mobile Apps, Social CRM, and Gamification 165
Epilogue: Getting to WOW! 167
What Is a “WOW”? 167
Enjoy, Experience, Engage: WOW! 168
Are You Ready to WOW? 169
“The technology world moves so quickly today that each change accelerates the next. It’s critical in such an environment to have a baseline and point of reference to help marketers find their way forward. Marketing 4.0 puts a new scholarship stake in the ground and will be the starting point and an invaluable resource for everyone trying to invent and understand the digital and mobile future.”
—Howard Tullman, CEO, Chicagoland Entrepreneurial Center/1871
“The Internet and IT radically change marketing. This book is the eye-opener for marketing in the new era.”
—Hermann Simon, Founder and Chairman, Simon-Kucher & Partners
“No one has a finger on the pulse of marketing like Phil Kotler. His ability to identify and interpret new marketing trends and developments is truly astounding. Once again, with Marketing 4.0, Kotler and his co-authors help to blaze a new trail to marketing success. This is definitely the one marketing book you HAVE to read this year.”
—Kevin Lane Keller, E.B. Osborn Professor of Marketing, Tuck School of Business
“Kotler and his associates have beautifully synthesized today’s digital, interactive marketplace and marketing’s new role.”
—Don Schultz, Professor (Emeritus-in-Service) of Integrated Marketing Communications, Medill School at Northwestern University
“No one is more qualified than Philip Kotler, the father of marketing, to document the enormous changes taking place in the field today. The future of marketing is digital and this book is your guide.”
—Al Ries, Author of Positioning: The Battle for Your Mind
“As the world of marketing increasingly grapples with digital transformation, Marketing 4.0 offers an exciting framework along with examples for practitioners.”
—Nirmalya Kumar, Professor of Marketing, London Business School
“A terrific guide to the transformations that are already coming over the horizon to challenge marketing practice. Perplexed marketers will learn how to navigate the power shifts and possibilities of digital connectivity and turn them into advantages.”
—George S. Day, Geoffrey T. Boisi Professor Emeritus, Wharton School of the University of Pennsylvania
“I am often overwhelmed by the variety and the speed of change, in spite of being in marketing consulting for forty years. I am therefore happy that the ‘guru’ Philip Kotler, who began with Marketing 1.0 over four decades ago, is still with us to make another significant contribution with Marketing 4.0—guidelines to deal with changes today, especially those brought about by the IT revolution and changing consumer profiles.”
—Walter Vieira, Marketing Consultant, Author, Visiting Professor, Past Chairman of International Council of Management Consulting Institutes
About the author
Philip Kotler, the S.C. Johnson & Son Distinguished Professor of International Marketing at the Kellogg School of Management, Northwestern University, is widely regarded as the Father of Modern Marketing. He is ranked by the Wall Street Journal as one of the top six most influential business thinkers. The recipient of numerous awards and honorary degrees from schools all over the world, he holds an MA from the University of Chicago and a PhD from the Massachusetts Institute of Technology (MIT), both in economics. Philip has an incredible international presence—his books have been translated into approximately 25 languages, and he regularly speaks on the international circuit.
Hermawan Kartajaya is the founder and Executive Chairman of MarkPlus, Inc., and is one of the “50 Gurus Who Have Shaped the Future of Marketing,” according to the Chartered Institute of Marketing, United Kingdom. Hermawan is also a recipient of the Distinguished Global Leadership Award from Pan-Pacific Business Association at the University of Nebraska-Lincoln. He is the current President of the Asia Council for Small Business—a regional council of affiliates and chapters of the International Council for Small Business—and a co-founder of the Asia Marketing Federation.
Iwan Setiawan serves as the Chief Operating Officer of MarkPlus, Inc. (www.markplusinc.com), where he helps businesses design their marketing strategies. A frequent writer and speaker, Iwan is also the Editor-in-Chief of Marketeers (www.marketeers.com). Iwan holds an MBA from the Kellogg School of Management at Northwestern University and a BEng from the University of Indonesia.
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