Now a Days …
• Anxieties : Solution about
making globalized world a better
• Confusion : Deepest needs
for social, environmental and
economic justice in their
mission, vision and values
• Not only functional and emotional
but human spirit
fulfillment in products and
To be a
Out with the OLD
In with the NEW
Harshit Dhora (PC-07)
Vipul Patil (PA-20)
Mihir Pandit (PC-09)
• IM professor at the Kellogg School
of Management, NW Uni.
• Founder and CEO of MarkPlus, Inc.
• Senior consultant at MarkPlus, Inc.
• Marketed and Distributed in India by Times Group Books
• Published by John Wiley and Sons, Inc., Hoboken, New Jersey
• Pages : 188
• Rs. 495
• 3 parts and 10 Chapters
shape the human
and values to
each of the
solving global issues
contribution by the
Mind Heart Spirit
“Any customer can have a car
painted any color that he
wants so long as it is black”
Sell products to the
Satisfy customers &
Meet emotional and
rational needs of
Enabling Forces Industrial Revolution
How marketers see the
Smarter consumers &
People instead of
Product driven market Differentiation
Value of product to
Value Propositions Functional
Mass communication Micro segmentation
collaborate with each
Power of branding Marketers/companies Marketers/consumers Consumers
MAJOR FORCES THAT SHAPE THE BUSINESS LANDSCAPE TOWARD
AGE OF CREATIVE
SOCIETY AND HUMAN
MARKETING 3.0 : AGE OF PARTICIPATION AND COLLABORATIVE MARKETING
MARKETING 3.0 : AGE OF GLOBALIZATION PARADOX AND CULTURAL MARKETING
• Democracy vs
• China, Cash-rich
• Avg. CEO earns
• India has MT 50
• Jihad vs
WORLD IS STILL ROUND
MARKETING 3.0 : AGE OF CREATIVE SOCIETYAND HUMAN SPIRIT MARKETING
FUTURE OF MARKETING
The Disciplines of Marketing Today’s Marketing
Future Marketing Concept
Product Management 4 P‘s Cocreation
Customer Management STP Communitization
Brand Management Brand Building Character building
Pools Connected to IDEA (strong belief and affiliation)
Webs Connected to ONE ANOTHER (one-to-one)
Hubs Connected to a LEADER (loyal fan base)
Cocreation : Platform , Match own unique identities, Feedback and Enrichment
Character Building • Authenticity by Pine and Gilmore
Shift to Human Spirit : The 3i of Domino‘s
‗Yeh Hai Rishton Ka Time‘
Introduces a new product or
initiates a new promotion
―You get fresh, hot pizza delivered to your door in 30 minutes or less—or it‘s free.‖
• Positioning : Just claim that alerts consumer to be cautious of inauthentic brand.
• Differentiation: Brand‘s DNA that reflects true integrity of the brand.
• Brand identity : Positioning of brand in the mind of consumers
• Brand integrity : Fulfilling what is claimed through the positioning and
differentiation (Credible, Promise and Trust) Target is SPIRIT
• Brand Image : Acquiring strong share of consumers‘ emotions
The 3i of Revital
‗Jiyo ji bhar ke‘ – Live
Life to the fullest
Daily Health Supplement
Value-Based Matrix (VBM) Model
MIND HEART SPIRIT
PROFITABILITY RETURNABILITY SUSTAINABILITY
Be BETTER DIFFERENTIATE Make a DIFFERENCE
Mission Sell more Pizza, have more fun!
Vision No 1 in Pizza and People
Values • Treat people as you'd like to be treated.
• Produce the best for less.
• Measure, manage and share what's important.
• Think big and grow.
• Incentivise what you want to change.
• Set the bar high, train, never stop learning.
• Promote from within.
• We are not ordinary, we are exceptional.
MIND HEART SPIRIT
Different kinds of
Pizza and side orders
Values : Report
One of the 100
for working with Less Costly
MARKETING THE MISSION TO THE
Remember,1985 new coke story.
Consumer backlash, not about new taste it ws about bond with the infamous secret
The new coke ruined the bond hence consumer shunned.
Not case of product failure.
Canada story was different because coke did not have iconic status there.
Brand popularized the happy portrayal of Santa Claus in 1930.
1971”I would like to teach the world to sing”
The mystery surrounding the original formula was considered the secret of happiness.
2009 “open happiness campaign”
“CONSUMERS GUARDING THE BRAND”
CONSUMERS ARE THE NEW BRAND OWNERS
CONSUMERS ARE THE NEW BRAND OWNERS
2009 in cost saving move changed font from custom futura to
Outrage on twitter.
IKEA meant smart stylish lifestyle.
Brands mission is implanted into consumers minds, hearts and spirits.
Then brand is owned by consumers.
Real mistake was that they did not understand their brand mission as their consumer did.
Marketing 3.0 you really don’t own your brands once they are successful.
Companies have to live with the fact that exerting control over brand is almost
GOOD MISSION DEFINED
Means introducing new business perspective that can transform the lives of consumer.
Business as usual
HBR Publishes Break through ideas
Need strategic foresight.
Possessed by charismatic and visionary
Their personal mission and brand
mission are inseparable and most often
Not necessarily innovators or pioneers.
Anita Roddick's and bill gates
Got inspiration from others made idea
even bigger and more meaningful for
Examples of business as unusual
Anita Roddick's :
Brand: “THE BODY SHOP”
Although copied brand name and idea of recycled packaging fromUS Co,1976
She introduced idea of creating stories around cosmetics.
Original brand mission: Embed social activism in business.
Brand: “THE WALT DISNEY CO.”
Created successfully animated characters but also brought them into
mainstream business with licensing and theme park experience.
Original brand mission: Create magical world for families
“BUSSINESS SHOULD START FROM A GOOD MISSION , FINANCIAL RESULTS
Eg Amazon.Com earned first profits in 2001 after 7 years of existence.
Twitter Has not yet finalized on it s business model and how to monetize its service
Mark Zuckerberg decided to build communities and not to exit and find a buyer for
GOOD MISSION Transformation or Change i.e making a difference
consumer unconsciously accept it as a part of its daily life
Human spirit marketing
offering is consumers
Eg Jeff Benzos created kindle
Rethink how to persue their
STORY THAT MOVES PEOPLE
Build compelling stories around ideas and engage with
Example: Steve Jobs “ MASTER STORY TELLER ”
He always begins with story after delivering stories he will
talk about features and set of facts regarding the product.
1984 commercial introduction of Macintosh.
2001,i-pod would let people carry music libraries of entire life
in their pockets.
2007,i-phone would easy to use device that combines music
phone and internet.
Thus, Steve has delivered the mission of transformation for
computing, music and phone industry over past 25 years.
Though individual consumer is weak their collective power is always bigger than power
Advertising network develop one-2-one, one-2-many or many-2-many.
Eg .Low cost consumer packaged goods
COALGATE : Brand mission to make people smile,is running consumer empowerment
programme called “SMILE”
TIDE : BRAND MISSION TO CLEAN CLOTHES.
PROGRAMME “LOADS OF HOPE”
Consumer should talk about brand story
MARKETING 3.0:CONVERSATION IS NEW ADVERTISING
AMAZON REVIEWS AND RECOMMENDATION FOR READERS.
EBAYRATE BUYERS AND SELLERS
Positive WOM consumer risk their own reputations.
Conversation is so strong that it helps when brand is in trouble
2010, SAAB motors was debt and operations were about to be closed.
“How saab saved my life”
“the rituals of flashing lights to other SAAB drivers”
The story of brands lives longer than the brand itself.
MARKETING THE VALUES TO THE EMPLOYEES
VALUES UNDER FIRE
Marketing related profession car sales person and advertising person were least
Most admired were doctors teachers and nurses because they make personal difference
in life of consumer.
Beating from both from consumers as well as employees.
Marketing 3.0: Convince both to take their values more seriously.
Same story telling approach.
1. Permission to play
2. Aspirational values
3. Accidental values
Good values are those which are attracted collaborative technology , globalization cause
cultural transformation to take quickly and frequently.
VALUE WILL DO YOU GOOD
ATTRACTING AND RETAINING TALENT
Advantages for competing for talent .
Attract employees and retain them longer
Prospective employees unconsciously compare their
personal values with the values of corporation and look for
a good fit.
Stats 50%MBA grads say that they are willing to take a pay
cut to work in a socially responsible co.
Purpose and culture most important factor in BRIC countries.
Well kept values improve employee loyalty.
Change of ownership of a company reduce employee
Eg. Body shop by Loreal
Ben and jerry by Unilever
Back office productivity and front office quality
Values-driven employees not only work harder but also become better face of company.
Their behaviour will be the part of brand stories that customer talk about.
Employees should be seen as “value ambassador” customer judge authenticity looking
Wegman employee are food ambassadors.
Best sales people in world are people who use and understand their product inside out.
Eg ciscoexperience daily what it means to be well connected to everyone being a
VALUE WILL DO YOU GOOD
VALUE WILL DO YOU GOOD
INTEGRATING AND EMPOWERING DIFFERENCES
Shared values integrate employees under one corporate culture.
Eg Rent a Car
Long standing routine
Recruit new college graduates tell them to work hard by washing and shuttling cars
, teach long term relationship with customers
Progress up the ranks and give them branch to run when they are ready.
Humility employee pick up while washing builds relationship and transform them into
SAME VALUES + LOCAL KNOWLEDGE = CUSTOMIZED LOCAL STRATEGY INTO
PRACTICE WHAT YOU PREACH
Training should be practiced not only preached.
Not just training and coaching but aligning values with behavior.
Transforming employees and empowering them to transform others.
CHANGE THE LIFE OF EMPLOYEES
Eg.S.C Johnson puts value in employee like cutomers
Balanced family-work lifestyle.
Couple can expect to get an overseas assignment together
No bussiness meetings on friday ,home aerly for family
PRACTICE WHAT YOU PREACH
SIX SEGMENTS OF EMPLOYEES:
1. Low obligation and easy income:Quick wins
2. Flexible support segment:Goes with flows
3. Risk and reward: job challenges and excites
4. Individual expertise and team success:Seeks collaboration
5. Secure progress:Promising career path
6. Expensive legacy:Lasting impact on co.
This segmentation helps company design signature experience and weed out unsuitable
EMPOWER EMPLOYEE TO MAKE CHANGE
CHINESE PROVERB``TELL ME AND I WILL FORGET;SHOW ME AND I MAY
REMEMBER;INVOLVE ME AND I WILL UNDERSTAND”
So companies need to invoved and empowered
MARKETING THE VALUES TO THE CHANNEL
GROWTH MIGRATION AND COLLABORATIVE IMPERATIVE
By 1999,dell was largest seller on internet ahead of Amazon.Com,E-bay and
In 2005,growth stalled as in mature markets consumers saw computers as
commodities and less concerned about customization.
Dell needed direct indirect collaborating models.
Problems in Mature market:
Consumer found other alternatives attractive.
In growth markets chindia people preferred high touch human interface than
high tech internet interface.
Dell secretly started in 2002 and in 2007 announced partnership with 11500
MARKETING 3.0: Channel partners are HYBRID of company consumers and
They have their own mission vision value and business model
Only thing is they send to end consumers and form consumer interface just like
CHANNEL AS COLLABORATOR
In marketing 3.0
They act as
• Cultural change agent
• Creative partners
CHANNEL AS COLLABORATOR: (SELECT THE FIT) .
Mirroring the process.Should have identical
PURPOSE:Overall key objective of potential
partner.Relatively easy to observe
IDENTITY:Relates to character of potential
partner requires deeper investigation.
VALUES: More difficult to observe.They invove
shared beliefs eith the channel partner.
CHANNEL AS COLLABORATOR
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).
Channel partners as cultural change agents (distributing the story)
Sometimes channel partners manage consumer interface
Co does not directly communicate with consumers
It demands consistent personal approach.
Eco friendly benefits.
Eg Maria Yee the role of partners is not only to convince
Brand positioning but also to promote overall eco friendly
CHANNEL AS COLLABORATOR
CONSUMERS THEMSELVES ARE CHANNEL PARTNERS
Biggest issue in marketing for poor is access.
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
Also choupal sagars concept of minimalls that sell
products from consumer goods to health and
CHANNEL AS CREATIVE ALLY :MANAGING THE RELATIONSHIP
They not only distribute but also provide customer touch points
In it industry the channel partners are perceived as value added
resellers capable of delivering solutions while manufacturers are
peceived as seller of commodities.
Retailers help in regular info sharing & strategy planning.
CREATIVE CHANNEL PARTNER STAGES:
1. Single stage channel
2. Multistage channel
3. Territory based channel
4. Integrated multichannel stages.
MARKETING THE VISION TO THE SHARE
SHORT TERMISM HURTS ECONOMY
Sep 2008 LEHMAN BROTHER collapse
158 years old company survived turbulent times of great
depression in 1930’s
But couldn’t survive 13 months of financial crisis.
Warren Buffet and Louis Gerstner put joint statement to
put an end to short term in financial markets.
It hurts long term value creation for shareholders and
hurts economy badly.
And encourage patience in investments.
Not only Share holders but all stake holders like
consumers, employees channel partners, government non
profits and public at large.
Long term shareholder value = Vision of Sustainability
POLARIZATION:MATURE MARKETS OR IMPOVERISHED MARKET
Top end market Is maturing and high end consumers are becoming more concerned
They need to touch human spirit with sustainable business model.
They pay higher for sustainable practices.
In growth markets,
Large consumer base at bottom of pyramid,
Disruptive technologies is normally solution for poor society.
SCARCE RESOURCES AND EARTH HAS A LIMIT:
1980’s focus was on preventing pollution
1990’s consumer centric practices product steward
Practices.Enviornment friendly products.
Those who manage scarcity of resources will be ultimate winners.
Initially whole foods for niche markets then 2006 walmart embraced the same concept
no longer to be niche.
Wal-Mart Turns Green
Walmart pledged to improve productivity more enviornmentally sound practices.
By going green.
Wal-Mart announced in 2005 that it will be a “good steward to the environment” and
will spend $500 million a year to increase fuel efficiency in Wal-Mart’s truck fleet by
25% over three years; reduce greenhouse gases by 20% in seven years; reduce
energy use at stores by 30%; and cut solid waste from U.S. stores and Sam’s Clubs by
25% in three years.
ENVIORNMENTAL SUSTAINABILITY WILL SHAPE FUTURE OF
BUSSINESS IN NEXT 25 YEARS.
SUSTANABILITY AND SHAREHOLDER VALUE
Indices now measure how well a company performs in the triple bottom line:
profit, planet, and people.
To encourage companies to improve their economic, environmental, and social impact
on the society.
FTSE4Good Index Good companies work toward environmental sustainability, have
positive relationship with all stakeholders, protect universal human
rights, possess good supply chain labor standards, and counter
Corporate sustainability as “a business approach that creates long-
term shareholder value by embracing opportunities and managing
risks deriving from economic, environmental and social
Goldman Sachs Introduce the GS Sustain Focus List, which includes the list of
companies with sustainable practices
How Will Your Company Be Measured?
MARKETING A VISIONARY STRATEGY
To convince shareholders, the company needs to provide tangible evidence that the
practice of sustainability will improve shareholder value by creating a competitive
The issue is to find a
linkage of between
ty, and returnability
Profitability :short term goal
Returnability :long term goal.
Eg Amazon.Com and e-bay, Promise of
returnability prevents shareholders from
MARKETING A VISIONARY STRATEGY
THREE important metrics that can be
Improved cost productivityINFLUENCE
Higher corporate brand value INFLUENCE
Higher revenue from new market
opportunities INFLUENCE BOTH.
Improved cost productivity:
Making a compelling story and communicate this
long termsavings shareholders.Hence,CA bcoz of
higher productivity as cost are rising.
Higher corporate brand value:
Body shop challenged by journalist.
Who doubted animal testing
So company cited its corporate
brand that it is well known as non
animal testing symbol
Now consulting firms like
interbrand and brand finance
valuate corporate barnd reputation
Marketing to the Post growth market- Challenge
Product- As Commodities
85% of American consumers have positive image of companies
that supports social challenges- Survey by Cone
Companies need to address the challenges in society and
participate in finding solution
Delivering Socio-cultural Transformation
Two Forces oblige companies in a mature market to support a
Need for future growth
E.g. Disney on Children’s
Call for strong differentiation
E.g. Wegmans on Healthy
From Philanthropy to Transformation
-American Express Body Shop
Three Stages of Transformation
- Identify current
and predict future
- Challenges may
tion, or social
- For immediate
impact : select
constituents such as
class, woman, or the
- For future impact :
select children and
- Provide behavior-
moving up the
- Aim toward more
cultural, and creative
From Pyramid to Diamond
From Aid to Entrepreneurship
Increased access amongst poor to IT Infrastructure
Hyper competition at top and middle of the pyramid
Govt. policy to discourage people from migrating to over crowded
Great Leap Downward Disruptive Innovation
Creating Emerging Market Entrepreneurs
“A company that is making money while impacting the society in
which it operates”
Stretches disposable income
Expand disposable income
Increase disposable income
“ Teaches people how to fish instead of giving them free fish”
SBE [ Social Business Enterprise]
The Marketing Model of an SBE
1 Segmentation Bottom of the Pyramid
2 Targeting High volume communities
3 Positioning Social business enterprise
4 Differentiation Social entrepreneurship
5 Marketing Mix
Product Products not Currently Accessible for low-income
Place Community Distribution
6 Selling Sales Force of Social Entrepreneurs
7 Brand Iconic
8 Service No-Frills
9 Process Low-Cost
No Elements of
Social Business Enterprise
Alleviating poverty by Encouraging Entrepreneurship
Make a difference to solve the biggest issues of our times:
3 Actors in Sustaining the Environment
The innovator invents the products that have the potential to save
the environment, not products that simply do not harm nature and
are environment friendly.
• Gas emission reduce to 72% and further reduce to 15 % in 2015
The Innovator – Dupont case
“ My team knows when they walk into my office with an idea about a
new product, it would better have a reduced environmental footprint
or they walk right out because (if it doesn’t) I am not listening.”
“Its not easy being green……Being green is a catalyst for
Walmart- Never rated high as a good corporate citizen
Ignorant of environmental issues
8% public discontinued their regular shopping- McKinsey report
“ Investor is someone who puts (money) to use, by purchase or
expenditure, in something offering potential profitable returns, as
interest, income or appreciation in value”
The Investor- Walmart case
“ The propagator is usually a smaller size company in a non-
chemical/ biotechnology/ energy/ high tech industry.”
The core differentiation usually lied in its green business model.
“Nutrition label” on each pair of shoes
The Propagator- Timberland case
Innovator Propagator Investor
Enabler Promoter Amplifier
Current exposure to
Competitive market for
Low market power in
High brand exposure
Motivation of different actors
Four segments of the Green market
Trendsetter Value seeker Standard
Tree hugger or
Wait and see
Do not believe
Positioning Eco advantage Eco efficiency Eco standard Not worth
Putting it all together
Credo 1: Love your Customers. Respect your Competitors
Credo 2: Be sensitive to change, be ready to transform
Credo 3: Guard your name, be clear about who you are
Credo 4: Customers are diverse; go first to those who can benefit most from you
Credo 5: Always offer a good package at a fair price
Credo 6: Always make yourself available, spread the good news
Credo 7: Get your customers, keep and grow them
Credo 8: Whatever your business it is a service business
Credo 9: Always refine your business process in terms of quality, cost, and delivery
Credo 10: Gather relevant information, but use wisdom in making your final decision
“ For too long, marketers thought customer satisfaction was the goal
of marketing activities. Marketing 3.0 makes the persuasive case that
customer and societal welfare is the next frontier for companies”
Reference: Marketing 3.0 by Philip kotler, Hermawan Kartajaya, Iwan