Published in Ad Age | CMO Strategy–April 28, 2011Want to Evolve YourMarketing?Let People -- Not Products -- Lead the WayLooking for big ideas to take your marketingto the next level? "Marketing 3.0," by PhilipKotler, Hermawan Kartajaya and IwanSetiawan, proposes a fundamental evolutionto our marketing strategies. It seeks to moveour focus from product and customer modelsto a human-centric model. It challenges us toevolve from pushing products to solving real-world socio-cultural issues, whileconcurrently creating relevant valuepropositions that ultimately lead to higherprofit.To better understand the theory behindMarketing 3.0, it helps to place it in somecontext. Marketing 1.0 was developed in theIndustrial Age, a "product-centric" erafocused on mass-selling products throughfunctional value propositions. Marketing 2.0was developed during the Information Age,and it adopted emotional value propositions.The authors of Marketing 3.0 propose thatwe are now at the dawn of the "values-driven" era, characterized by consumers whowant to satisfy functional, emotional andspiritual needs. Marketing 3.0 seeks tosatisfy the whole person -- mind, body andsoul.Why this evolution tohuman-centric valuepropositions? The authorspoint to 3 trends that areshaping the future ofmarketing.
Published in Ad Age | CMO Strategy–April 28, 2011The first trend is massparticipation/collaborative marketing. Socialmedia has tapped into natural human desiresfor connectivity and interactivity. People notonly consume media, news andentertainment, but also seek to produce itscontent via social networks. This move fromconsumer to "prosumer" is not simplyreserved for the individual, but also enablesmass-to-mass collaboration (think Wikipedia,Craigslist, InnoCentive). As influencers havegained power and status, companies shouldseek collaborative marketing strategies -- co-creation of products and services withconsumers, employees, channel partners andother firms with similar goals and values.The second trend is global paradox. Easeof travel and technology advances havecreated truly "global citizens" who still wantto be considered individuals. Marketing thataddresses both local and global communitieswill succeed. For example, marketers shouldseek to create micro-communities that servethe interest of its members.The third trend is the rise of a creativesociety and human-spirit marketing. Theauthors suggest that the influence and statusof creative people -- who generally tend toinnovate, collaborate and express themselvesmore than others -- is on the rise because thecreative class pursue self-actualization andplace the same demands on the products andservices they consume. Marketers wishing tocapitalize on this trend should focus oncommunicating credibility and supplyingmeaning to its consumers.So how does a marketer function inMarketing 3.0? Borrowing from Ries andTrout, the authors suggest that Marketing3.0 should be redefined as a triangle ofbrand, positioning and differentiation, butthen build on this formula by introducingtheir own "3I" model, which they feelcompletes the connections in the Ries/Troutmodel.In the Marketing 3.0 model, the three Isstand for identity, image and integrity:Identity is the relationship betweenpositioning and brand and seeks to addressthe rational portion of the value proposition.In Marketing 3.0, the key here is how youaddress the mind, the consumers rationalthoughts about the brand.Image lies at the juncture of differentiationand brand and strives to capture theemotions of the target audience. The key
Published in Ad Age | CMO Strategy–April 28, 2011here is how you address the consumers heart– what they feel about the brand, themselves,the category.Integrity is the intersection of positioningand differentiation, and it aims toauthentically fulfill the brand promise andfoster trust. This is the "newest" of the threeIs and speaks to such issues as authenticityand soul – of the consumer and the product.At first glance Marketing 3.0 appears overlyambitious. The idea of addressing the wholeperson -- and doing so on a global scale -- isdifficult to grasp from a segmentationperspective. However, the book providesstrong evidence and references to human-centric marketing currently under way. And Ican personally vouch for the practicality oftheir thesis as I find myself attempting tosolve both human and global concerns via ourstrategic alignment and collaboration withkey constituents.My only criticism of the book is the 3Imodel. The section is underdeveloped and itstheory is ambiguous. Had they made thismore of a how-to chapter, explaining step-by-step how marketers could implement it, theirthinking would have been much more useful.Marketing is evolving and the stakes arehigher. If you want to differentiate, youcannot do so through tactics, you mustchoose a different strategy. Marketing 3.0 canraise your thinking to the next level.About the author:Ramiro Romans mission is to share through hispersonal experience the science & art ofmarketing leadership. He provides practical tipsand answers marketing related questionsthrough his blog: Marketing4Marketeers. Hemoreover serves on the Editorial AdvisoryBoard and is a writing contributor for PM360 –The Essential Resource for Pharma Marketers -magazine.Beyond his passion for marketing, Ramirodevotes his life to being a better husband &father of 5.Network!