Marketing From Products to Customers to the Human Spirit Hardcover – May 3, The new model for marketing-Marketing treats customers not as mere consumers but as the complex, multi-dimensional human beings that they are. Legandary marketing sage Philip Kotler and his. PROLOGUE FROM MARKETING TO MARKETING For the past six years, marketers whom we met around the world have been asking for a sequel to. Principles of marketing / Philip Kotler, Gary Armstrong. -- 14th ed. p. cm. Includes Principles of Marketing From Products to Customers to the - Thai-Library.
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App de Resumo de Livros | Phlip Kotler | Marketing | Livros de leitura em pdf e livros de áudio em apenas 12 minutos. #livros #livros para ler #livros trechos. Apr 4, Management - Global 14th Edition Pdf Download Free e-Book - By Stephen P Robbins, Mary A O conceito básico do Marketing e do livro é. PDF | Pankaj Ghemawat (), Boston (MA): Harvard Business Review Press, p. market failures commonly associated to globalization.
Chris Anderson's long tail hypothesis could not be truer today. The market is shifting away from high-volume mainstream brands into low-volume niche ones. With the internet, physical logistical constraints no longer exist for smaller companies and brands. This inclusivity now enables companies to enter industries that they would not otherwise have entered in the past.
This provides opportunities for companies to grow but poses significant competitive threats. Because distinctions between industries are blurring, it will be highly challenging for companies to keep track of their competitors. Competitors in the future will come from the same industry as well as from other relevant and connected industries.
To spot latent competitors, companies should start with the customers' objectives and consider potential alternatives that customers might accept to achieve their objectives. Companies should also track competitors from outside their home markets. These competitors are not necessarily multinational corporations. In recent years, we have observed the rise of great companies from emerging markets such as Xiaomi and Oppo. These companies innovate out of necessity and were created in challenging home markets.
They match the quality of major brands but with significantly lower prices. This is made possible by the online go-to-market option. Highly innovative and resilient, these companies have all the necessary ingredients to expand their markets globally.
The concept of customer trust is no longer vertical; it is now horizontal. Customers in the past were easily influenced by marketing campaigns.
They also sought for and listened to authority and expertise. But recent research across industries show that most customers believe more in the f-factor friends, families, Facebook fans, Twitter followers than in marketing communications. Most ask strangers on social media for advice and trust them more than they do advertising and expert opinions. In recent years, the trend has spurred the growth of communal rating systems such as TripAdvisor and Yelp.
In such a context, a brand should no longer view customers as mere targets. In the past, it was common for companies to broadcast their message through various advertisement media. Some companies even invented a not-so- authentic differentiation to be able to stand out from the crowd and support their brand image. Consequently, the brand is often treated as outer-shell packaging, which allows for a fake representation of its true value. This approach will no longer be effective because with the help of their communities, customers guard themselves against bad brands that target them.
A relationship between brands and customers should no longer be vertical but instead it should be horizontal.
Customers should be considered peers and friends of the brand. The brand should reveal its authentic character and be honest of its true value. Only then will the brand be trustworthy. From Individual to Social When making download decisions, customers have typically been driven by individual preference as well as by a desire for social conformity. The level of importance for each of these two factors varies from one person to another. It also varies across industries and categories.
Given the connectivity we live in today, the weight of social conformity is increasing across the board. Customers care more and more about the opinions of others. They also share their opinions and compile massive pools of reviews. Together, customers paint their own picture of companies and brands, which is often very different from the image that companies and brands intend to project.
The internet, especially social media, has facilitated this major shift by providing the platform and tools. This trend will continue. Virtually everyone on earth will be connected very soon. It turns out that the solution for the internet laggards was not cheap laptops but rather cheap smartphones.
In fact, it is projected by the UMTS Forum that mobile data traffic will jump by a factor of 33 from to With such vast connectivity, market behavior will become significantly different. For example, in many countries in-store research using mobile phones to compare prices and check reviews is trending. Mobile connectivity allows customers to access the wisdom of the crowd and to make better download decisions. In such an environment, customers conform more to social opinions.
In fact, most personal download decisions will essentially be social decisions. Customers communicate with one another and converse about brands and companies. From a marketing communications point of view, customers are no longer passive targets but are becoming active media of communications.
A beauty products brand—Sephora —has been exploring communities as a new form of media assets. Sephora has built a social media community in which all community-generated content is incorporated into the Beauty Talk platform. It has become a trusted medium for customers who are trying to consult with other members of the community.
Embracing this trend is not easy. With community-generated content, companies have no control over the conversation. Censoring content will weaken credibility. They must also be prepared for massive social backlash when something goes wrong. That being said, companies and brands that have strong reputations and honest claims about their products should have nothing to worry about. But those who make false claims and have poor products will not survive. It is practically impossible to hide flaws or isolate customer complaints in a transparent, digital world.
Horizontal, Inclusive, and Social Marketers need to embrace the shift to a more horizontal, inclusive, and social business landscape.
The market is becoming more inclusive. Social media eliminate geographic and demographic barriers, enabling people to connect and communicate and companies to innovate through collaboration. Customers are becoming more horizontally oriented.
They are becoming increasingly wary of marketing communications from brands and are relying instead on the f-factor friends, families, fans, and followers. Finally, the customer downloading process is becoming more social than it has been previously.
Customers are paying more attention to their social circle in making decisions. They seek advice and reviews, both online and offline. Reflection Questions What are the trends in your respective industry that demonstrate the shifts toward a more horizontal, inclusive, and social business landscape? What are your plans to embrace these shifts in the marketplace? Offline Interaction, Informed vs.
Distracted Customer, and Negative vs. Positive Advocacy We have always believed that the word marketing should be written as market-ing.
Writing it that way reminds us that marketing is about dealing with the ever-changing market, and that to understand cutting-edge marketing, we should understand how the market has been evolving in recent years. The clues and trends are there for us to see. A new breed of customer, the one that will be the majority in the near future, is emerging globally—young, urban, middle-class with strong mobility and connectivity.
While the mature markets are dealing with an aging population, the emerging market is enjoying the demographic dividend of a younger, more productive population. They are not only young, they are also rapidly migrating to urban areas and embracing a big-city lifestyle.
The majority of them are in the middle class or above and thus have a sizable income to spend. Moving up from a lower socio-economic status, they aspire to accomplish greater goals, experience finer things, and emulate behaviors of people in higher classes.
These traits make them a compelling market for marketers to pursue. But what distinguishes this new type of customer from other markets we have seen before is their tendency to be mobile. They move around a lot, often commute, and live life at a faster pace. Everything should be instant and time-efficient. When they are interested in things they see on television, they search for them on their mobile devices.
When they are deciding whether to download something in-store, they research price and quality online. Being digital natives, they can make download decisions anywhere and anytime, involving a wide range of devices. Despite their internet savvy, they love to experience things physically. They value high-touch engagement when interacting with brands.
In fact, they trust their network of friends and family more than they trust corporations and brands. In short, they are highly connected. Breaking the Myths of Connectivity Connectivity is arguably the most important game changer in the history of marketing. Granted, it can no longer be considered a new buzzword, but it has been changing many facets of marketing and is not showing signs of slowing down. Connectivity has made us question many mainstream theories and major assumptions that we have learned about customer, product, and brand management.
Connectivity significantly reduces the costs of interaction among companies, employees, channel partners, customers, and other relevant parties. This in turn lowers the barriers to entering new markets, enables concurrent product development, and shortens the time frame for brand building.
There have been various cases of how connectivity quickly disrupted long- established industries with seemingly high entry barriers. site has disrupted the brick-and-mortar bookstores and later the publishing industry. Likewise, Netflix has disturbed the brick-and-mortar video rental stores and, along with the likes of Hulu, has shaken up the satellite and cable TV services.
In a similar fashion, Spotify and Apple Music have changed the way music distribution works. Connectivity also changes the way we see the competition and customers. Today, collaboration with the competitors and co-creation with customers are central. Competition is no longer a zero-sum game. Customers are no longer the passive receivers of a company's segmentation, targeting, and positioning moves.
Connectivity accelerates market dynamics to the point where it is virtually impossible for a company to stand alone and rely on internal resources to win. A company must face the reality that to win it must collaborate with external parties and even involve customer participation. Partner companies such as Kaz and Bissell launched Honeywell scented fans and odor-removing vacuum bag filters that carry the Febreze brand.
Seeing connectivity from a technological viewpoint alone would often be misleading. In the context of strategy, many marketers view connectivity simply as an enabling platform and infrastructure that support the overall direction.
A bigger-picture view of connectivity allows marketers to avoid this trap. A survey by Google reveals that 90 percent of our interactions with media are now facilitated by screens: Screens are becoming so important in our lives that we spend more than four hours of our leisure time daily to use multiple screens sequentially and simultaneously.
And behind these screen-based interactions, the internet has been the backbone. Global internet traffic has grown by a factor of 30 from to , connecting four out of ten people in the world. According to a Cisco forecast, we will see another ten-fold jump of global internet traffic by , powered by more than 11 billion connected mobile devices. With such a massive reach, connectivity transforms the way customers behave.
When shopping in-store, most customers would search for price comparison and product reviews. Google research shows that eight out of ten smartphone users in the United States do mobile research in-store. Even when watching television advertising, more than half of the TV audience in Indonesia conducts mobile search. This is a trend affecting customers globally. Derivative products of the internet also enable transparency.
Social media such as Twitter and Instagram enable customers to show and share their customer experience, which further inspires other customers from the same or a lower class to emulate and pursue a similar experience.
Communal rating sites such as TripAdvisor and Yelp empower customers to make informed choices based on the wisdom of the crowd. Thus, to fully embrace connectivity we need to view it holistically. While mobile connectivity—through mobile devices—is important, it is the most basic level of connectivity, in which the internet serves only as a communications infrastructure. In this stage, we are no longer concerned only about the width but also about the depth of the connectivity.
The ultimate level is social connectivity, which is about the strength of connection in communities of customers. Since connectivity is closely related to the youth segment, it is also often considered relevant only for the younger generation of customers. It is true that being digital natives, younger customers are the first to adopt connectivity, but they inspire their seniors to adopt connectivity as well.
Moreover, as the world population ages over time, digital natives will become the majority and connectivity eventually will become the new normal. The importance of connectivity will transcend technology and demographic segment. Connectivity changes the key foundation of marketing: Paradox No. Online Interaction Versus Offline Interaction The impact of connectivity with regard to online and offline businesses is not clear cut.
While online businesses have taken up a significant portion of the market in recent years, we do not believe that they will completely replace offline businesses. In fact, we believe that they need to coexist to deliver the best customer experience. Here is why: Birchbox, an online-first beauty product retailer, opened its brick-and-mortar store to complement its existing e- commerce business.
The retailer provides iPads to make personalized recommendations, mimicking its online personalization scheme. Zappos, an online shoe and clothing retailer, relies heavily on very personal call-center interactions as a winning formula.
downloading shoes online can be a daunting task for many customers, but a touch of personal consultation from the call-center agents reduces the psychological barrier. When making transactions on ATMs in these centers, customers can video-chat with a personal teller for assistance. The service combines ATM convenience with a personalized human touch. On the other hand, a high-tech interface can also enhance a predominantly high-touch interaction, making it more compelling.
Macy's shopBeacon project is an example of this. With Apple's iBeacon transmitters installed in various locations within a Macy's store, customers will be alerted with highly targeted offerings throughout their journey in-store. When walking past a certain department, customers might be reminded of their shopping list, receive discount notifications, and get gift recommendations through an iPhone app. As transaction data accumulate over time, the offerings will become more personalized to each shopper profile.
Another example is John Lewis's sofa studio, which allows customers to select a sofa model from 3-D- printed miniatures. By placing a miniature alongside a selection of fabric in front of a computer screen, customers can see what their sofa will look like on the screen. It gives a very playful customer experience when choosing sofa model and fabric. As it turns out, the online and offline world will eventually coexist and converge. Technology touches both the online world and the offline physical space, making it possible for the ultimate online—offline convergence.
Sensor technologies, such as near field communication NFC and location-based iBeacon, provide a far more compelling customer experience. In the engine room, big-data analytics enables the personalization that new customers are longing for. All of these complement the traditional human interface that was the backbone of marketing before the rise of the internet. Traditional and contemporary media for marketing communications such as television and social media will also complement each other. Many people go to Twitter for breaking news but eventually return to television and watch CNN for more credible and deeper news coverage.
On the other hand, watching television is often a trigger for people to pursue online activities on their smartphones. For example, a movie showing on television might trigger an online review search. A television commercial can also be a call to action for people to download products online. The characters of the new customers prompt us to realize that the future of marketing will be a seamless blend of online and offline experiences across customer paths.
In the beginning, brand awareness and appeal will come from a mix of analytics-powered marketing communications, past customer experiences, and recommendations from friends and family, both online and offline. Customers will then follow up through series of further research, utilizing the reviews from other customers—again online and offline.
If customers decide to make a download, they will experience a personalized touch from both the machine and the human interface. Experienced customers will in turn become advocates for inexperienced customers. Entire experiences are recorded, which further improves the accuracy of the analytics engine. In a highly connected world, a key challenge for brands and companies is to integrate online and offline elements into the total customer experience. Informed Customer Versus Distracted Customer We all think that today's customers are the most powerful.
It is valid to say that most of them actively search for information on brands. They make more informed download decisions. But despite their higher level of curiosity and knowledge, they are not in control of what they want to download. In making download decisions, customers are essentially influenced by three factors. First, they are influenced by marketing communications in various media such as television ads, print ads, and public relations. Second, they are persuaded by the opinions of their friends and family.
Third, they also have personal knowledge and an attitude about certain brands based on past experiences. The truth is that today's customers have become highly dependent on the opinions of others. In many cases, others' words have even outweighed both personal preference and marketing communications.
The reason for this is none other than the connectivity itself. On the bright side, connectivity brings a lot of protection and confidence. In the customers' minds, their inner circle of friends and family provides protection against bad brands and companies.
But connectivity, along with the presence of multiple devices and screens, also brings distractions. It hampers the customers' ability to focus and often limits their ability to decide.
Thus, many customers make their decisions by following the wisdom of the crowd. This is further fueled by the low level of trust that customers put in advertising and the limited time they have to compare qualities and prices. Further, because it is very convenient to receive advice from others, the importance of word of mouth is growing in the final download decision.
This is the portrait of the future customers—connected yet distracted. A survey by the National Center for Biotechnological Information shows that the average human attention span has dropped from 12 seconds in to 8 seconds in This can be attributed to the massive and overwhelming volume of messages that constantly bombard our connected mobile devices and demand instant attention. The challenge for marketers going forward is twofold.
First, marketers need to win customer attention. It would be hard for a brand manager to get a customer to sit through a second advertisement and for a salesperson to engage a customer using a second elevator pitch. In the future, it will be more difficult to get a brand message across. Customer attention will be scarce; thus, only brands with WOW! Second, marketers need to create brand conversations in customer communities despite not having much control over the outcome.
Marketers need to make sure that when customers ask others about a brand, there will be loyal advocates who sway the decision in the brand's favor.
Negative Advocacy Versus Positive Advocacy Connectivity allows customers to express opinions that others may listen to. It changes the mindset of customers to admit that advice from strangers might be more credible than a recommendation from celebrity brand endorsers.
Thus, connectivity creates a perfect environment for customer advocacy of brands. Advocacy itself is not a new concept in marketing. Customers who are considered loyal to a brand have the willingness to endorse and recommend the brand to their friends and family.
The most famous measurement of brand advocacy is arguably the Net Promoter Score designed by Frederick Reichheld. The Net Promoter Score is measured by the percentage of promoters subtracted from the percentage of detractors.
The key argument is that the ill effect of negative word of mouth reduces the good effect of positive word of mouth. While the concept has proven to be useful for tracking loyalty, the simple subtraction might leave behind some important insights. When a brand stays true to its DNA and consistently pursues its target segment, the brand polarizes the market.
Some become lovers and others become haters of the brand. But in the context of connectivity, a negative advocacy might not necessarily be a bad thing.
In reality, sometimes a brand needs negative advocacy to trigger positive advocacy from others. We argue that in many cases, without negative advocacy, positive advocacy might remain dormant. Like brand awareness, brand advocacy can be spontaneous or it can prompted. Spontaneous brand advocacy happens when a customer, without being prompted or asked, actively recommends a particular brand.
In truth, this type of advocacy is rare. One needs to be a die-hard fan to be an active advocate. Another form of advocacy is the prompted advocacy—a brand recommendation that results from a trigger by others. This type of advocacy, while very common, is dormant. When a brand has strong prompted advocacy, it needs to be activated by either customer enquiries or negative advocacy.
It is true that the balance between lovers and haters must be managed. Still, great brands do not necessarily have significantly more lovers than haters.
In fact, YouGov BrandIndex reveals an interesting fact. McDonald's, for example, has 33 percent lovers and 29 percent haters, a near balanced polarization. Starbucks has a similar profile: From the Net Promoter Score point of view, two of the biggest brands in the food and beverage industry would have very low scores because they have too many haters.
But from an alternative viewpoint, the group of haters is a necessary evil that activates the group of lovers to defend McDonald's and Starbucks against criticisms. Without both positive and negative advocacy, the brand conversations would be dull and less engaging.
But what these brands should aim to have is the ultimate sales force: Marketing Amid Paradoxes The changing landscape creates a set of paradoxes for marketers to deal with, one of which is online versus offline interaction. Both are meant to coexist and be complementary, with a common aim of delivering superior customer experience. Furthermore, there is a paradox of the informed versus the distracted customer.
Even as connectivity empowers customers with abundant information, customers have also become overly dependent on others' opinions, which often outweigh personal preferences.
Finally, with connectivity come enormous opportunities for brands to earn positive advocacies. Still, they are also prone to attracting negative advocacies. That may not necessarily be bad because negative advocacies often activate positive advocacies. Reflection Questions What are some of the cases in your industry that capture the paradoxical nature of connected customers? How do you plan to embrace the paradoxes?
Some segments rely on their own personal preferences and what they hear from advertising; thus advocacy does not matter to them. Moreover, they do not share their experience with everyone else. Other segments have a greater tendency to ask for and give recommendations on brands.
They are the ones who are more likely to be loyal brand advocates. For increased probability of getting advocacy, marketers should place their bets on youth, women, and netizens YWN.
Many topics related to these three major segments have been researched and explored separately. In terms of size, each of these is a very lucrative segment. Thus, the marketing approach has been tailored specifically to cater to them. But here is the bigger picture. There is a common thread that connects them: YWN are the most influential segments in the digital era.
It is perhaps not surprising that most subcultures—groups that have sets of norms and beliefs outside of the mainstream culture e. They were, in many parts of the world, considered minorities and on the periphery of society. In the past, authority and power indeed belonged to seniors, men, and citizens. This was due to the traditionally higher level of income and downloading power that seniors, men, and citizens have had.
But over time, the importance and influence of YWN has increased significantly. In fact, the subcultures that YWN represent have begun to influence the mainstream culture. Their relatively larger networks of communities, friends, and family empower them to do this. Youth, for example, set the trends for their seniors, especially when it comes to pop culture fields such as music, movies, sports, food, fashion, and technology.
Younger-generation consumers often become the first to try new products, thus often becoming the primary target market for marketers. When youth accept new products, those products usually reach the mainstream market successfully. In many countries the women in the household act as the chief financial officer of the family. In selecting which brand to download in many product and service categories, women's voices often trump men's.
This is because most women have the patience and interest to go through a comprehensive process of researching for the best choice, something that most men consider useless or even painful. Thus, women play a significant role in becoming the gatekeeper of any products and services that marketers offer to families.
Netizens—or citizens of the internet—are also highly influential. As digital natives, they are very savvy in connecting with others online while sharing information. While not all their shared information is valuable and not all their activities are productive, they are clearly the epitome of smarter customers. Representing what they see as a true model of boundaryless democracy, they freely express their opinions and feelings about brands, often anonymously.
They create ratings, post comments, and even create content that other citizens pay attention to. Because of their characteristics, YWN are not easy to impress. But when we impress them, they will be the most loyal advocates of our brands. Brand advocacy from quality segments such as YWN is more valuable than from others.
Because YWN have a strong influence on the mainstream market, brands will reap huge benefits by engaging them. Acquiring the Mind Share For marketers, it makes sense to target youth.
Interestingly, approximately 90 percent of them are living in less-developed countries. They are facing all sorts of life challenges to realize their full potential in education and career while managing social dynamics among their peers.
Marketers are identifying and solving these challenges. The goal is to be relevant to young people's lives and therefore to gain access to their growing wallets. Even marketers whose products and services do not primarily aim at young customers pursue this lucrative market. The objective is to influence their minds early in their lives, even if it is still not profitable to do so currently. Today's young people, in the near future, will be the primary and probably the most profitable customers.
Moreover, targeting youth is the most exciting thing that marketers do. Marketing to them always involves either cool advertisements, trendy digital content, celebrity endorsements, or innovative brand activations. Unlike older segments, youth are so dynamic that it is rarely unproductive to engage them. And since the demographic size is huge, companies are often willing to spend heavily on this interesting marketing segment. The role of youth in influencing the rest of the market is immense.
First, they are early adopters. Youth are often accused of being rebellious and anti- establishment—that is, they love what adults hate. Although some youth are behaving as accused, most of them are not. The truth is that youth are just not afraid of experimentation.
They try new products and experience new services that older segments deem too risky. Marketers with newly developed and launched products need them. A youth- first strategy often has the highest likelihood of success.
When the iPod was first introduced in , the youth-oriented tonality of its advertising helped create rapid early adoption and eventually mainstream market success.
Similarly, when Netflix offered its streaming-only service in , its early adopters were tech-savvy youth. Secondly, youth are trendsetters. Youth are the Now Generation customers who demand instant everything. When it comes to trends, they are very agile. They follow trends so fast that marketers often fail to keep up.
But the upside is that this allows marketers to quickly pinpoint trends that will influence the market in the near future. Their tribal nature means that youth are also very fragmented. Thus, trends that youth follow are equally fragmented. Certain sports, music, and fashion trends might have cult following among some youth tribes but might not be relevant for others.
Perhaps the only trend that most youth follow is the movement toward a digital lifestyle. While many youth-endorsed trends turn out to be short-lived fads due to this fragmentation, some evolving trends do manage to hit the mainstream. The rise of Justin Bieber, who initially gained fame as a trending YouTube artist followed by millions of youth, is an example. The entire universe of social media, such as Facebook and Twitter, also started out as a trend among youth.
Similarly, music-streaming services such as Spotify, Apple Music, and Joox were brought to the mainstream market by young customers. Finally, youth are game changers. They are often associated with irresponsible and selfish behaviors. But recent trends show that they are maturing much earlier. This is because young people respond more quickly to changes happening in the world, such as globalization and technological advances. Now, they are concerned about what is happening around them. In fact, they are one of the primary drivers of change in the world.
We can see this from the growing youth empowerment movements. RockCorps, for instance, is a platform that allows youth to volunteer for four hours to transform communities and earn one ticket to an exclusive concert. Another example is WE. Indonesia Mengajar offers a similar empowerment platform through education. It rigorously selects the country's top graduates, asking them to forgo potentially high-paying jobs in favor of teaching in remote village schools for one year.
These movements make volunteering look cool. More importantly, this program raises the awareness of older generations about the importance of activism and social impact.
These roles—early adopters, trend setters, and game changers—all lead to the conclusion that youth are the key to mind-share. If brands want to influence the minds of mainstream customers, convincing youth is the important first step. Growing the Market Share The female market is also a logical one for marketers to pursue. Not only is its size enormous, the segment profile is also distinctive.
Many experts have put forth their views about marketing to women. Many products, services, and marketing campaigns have been developed specifically for women. The influence that women have on others is defined by what they do. Rena Bartos, in her book Marketing to Women Around the World, describes the segmentation of the female market: To put it simply, the world of women revolves around family and work.
The dilemma they often face is either to choose one alternative or to balance between family and career. But being more suited to multitasking, women are inherently better managers when it comes to complex, multifaceted assignments, at home, at work, or both.
In general, there are three roles that women play. First of all, women are information collectors. According to Martha Barletta, a woman's decision- making process differs from a man's. Whereas a man's path-to-download is short and straightforward, a woman's resembles a spiral, often going back to previous steps to collect new information and to reassess whether moving to the next step is the right choice.
Women typically spend hours in stores reviewing quality and comparing prices as well as hours researching online, while men typically limit their search and go after what they want as quickly as possible. Not only do women research more, they also converse more about brands. They seek out the opinions of their friends and family, and they are open to receiving assistance from others.
While men just want to get things done, women want to find the perfect product, the perfect service, or the perfect solution. For marketers, the information-collecting nature of women has its benefits. Women actually pay attention to all the information, and they will eventually summarize it for others.
In relation to that, women are holistic shoppers. The fact that they experience more touchpoints in their spiral path-to-download means that they are exposed to more factors for consideration. They are more likely to consider everything —functional benefits, emotional benefits, prices, and the like—before determining the true value of products and services.
For certain household categories, women consider products' value not only to themselves but to the entire family. Women also consider and browse for more brands, including less popular brands that they believe might have more value. Because of this, women are more confident about their choice when they finally download. Thus, they are more loyal and more inclined to recommend their choice to their community.
Because of these aforementioned qualities, women are de facto household managers. They deserve the titles of chief financial officer, downloading manager, and asset manager of the family. Not only are they the gatekeepers for most household products, including big-ticket items, women are also the influencers for other products such as investment and financial services.
A Pew Research Center report in revealed that in 41 percent of U. In Indonesia, the picture is even more striking. Based on a survey by MarkPlus Insight in , about 74 percent of Indonesian women managed all the family finances—controlling even the income of their spouses—although only 51 percent of them were working. It turns out that the role that women play at home is spreading to the workplace. In , the U. Bureau of Labor Statistics reported that women account for 41 percent of the employees who have the authority to make downloading decisions for their employers in the United States.
The influence of women at home and at work is growing. As information collectors, holistic shoppers, and household managers, women are the key to win market share in the digital economy. Expanding the Heart Share Michael Hauben, who coined the word in the early s, defines netizens as the people across geographical boundaries who care about and actively work toward developing the internet for the benefit of the larger world.
Netizens are considered to be the true citizens of democracy because they want to be involved in the development of the internet. They see the world horizontally, not vertically. The content on the internet is created and shared by the people and for the people.
But they believe in total democracy and not so much in governance. They embrace openness and sharing with others with no geographical boundaries. There are 3. Not all of them can be considered netizens or citizens of the Internet. Forrester's Social Technographics segmentation can help explain why not all internet users deserve to be called netizens.
According to the segmentation, there is a hierarchy of internet users, including inactives, spectators people who watch and read online content , joiners people who join and visit social media , collectors people who add tags to webpages and use RSS feeds , critics people who post ratings and comments online , and creators people who create and publish online content.
The collectors, critics, and creators best characterize the netizens— people who actively contribute to the internet and do not just consume on the internet. Their role in influencing others is related to their desire to always be connected and to contribute.
Netizens are social connectors. We know that netizens love to connect. They talk to one another, and information flows as they converse. Under anonymity, they have fewer risks and therefore are more confident when interacting with others and participating in online conversations. On the internet, their usernames and avatars are their identities.
There are many ways to socially connect on the internet.
This initial connection will lead to a link between the two individuals' separate networks, creating a many-to-many connection. From the outside, online communities look like webs of strangers, but on the inside, they are webs of trusting friends.
Since it is a many-to-many network built on one-to-one relationships, an internet community usually grows exponentially and becomes one of the strongest forms of community. Netizens are also expressive evangelists. Not revealing their true identities, internet users can be very aggressive in expressing their opinions.
The negative side of this is the emergence of cyberbullies, trolls, and haters on the internet. The positive side, however, is the emergence of brand evangelists. Netizens, unlike internet users in general, are more likely to be brand evangelists.
In the internet world, we know the f-factors: When they are passionate about and emotionally committed to a brand, netizens become the f-factors. They become evangelists or lovers, as opposed to haters, of the brand. Sometimes dormant, they often become active when they need to safeguard their favorite brand against cyberbullies, trolls, and haters. Further, evangelists are also storytellers of the brand who spread the news about brands to their networks.
They tell authentic stories from a customer's point of view—a role that advertising can never replace. As netizens who are more high-profile than other internet users, they yield a huge influence, often having a large number of their own followers, fans, and friends.
Netizens are also content contributors. They are called the internet citizens for a reason. Like good citizens contributing to their country, they contribute to the development of the internet.
The work of netizens makes life easier for other internet users. With the use of tags, information on the internet is better organized and quality content becomes easier for others to search. With product ratings and reviews on the internet, other users can easily discover the best available choice. The most important contribution, however, is to create new content, which can be in multiple formats: Independent musicians and moviemakers create commercial hits by becoming YouTubers and creating content on the video- sharing platform.
With new content being created every second, the internet is becoming richer and more useful, which will benefit users and draw non-users to start using the internet.
All these grow the netizen population as well as the value of the internet. Growing exponentially on the basis of emotional and mutually beneficial connections, communities of netizens are the key to expand a brand's heart share.
When it comes to communal word of mouth, netizens are the best amplifiers. A brand message will flow along social connections if it receives the netizens' seal of approval. Youth, Women, and Netizens Youth, women, and netizens have long been researched thoroughly by businesses but typically as separate customer segments.
Their collective strength, especially as the most influential segments in the digital era, has not quite been explored. Youth are early adopters of new products and technologies. They are also trend setters, yet are fragmented as to the trends they follow.
Ultimately they are game changers. As information collectors and holistic shoppers, women are de facto household managers, the chief financial officer, download manager, and asset manager all rolled into one. Finally, netizens are social connectors, as they overwhelmingly connect, converse, and communicate with their peers. They are also expressive evangelists as well as content contributors in the online world. Together, youth, women, and netizens hold the key to marketing in the digital economy.
Reflection Questions How can your business acquire greater mind share by leveraging youth's roles of early adopters and trendsetters? How can your business grow market share by leveraging the household influence of women? How can your business identify and utilize netizens to win greater heart share? McKinsey lists top innovations that have had the most significant economic impact, including mobile internet, automation of knowledge work, the internet of things, cloud technology, advanced robotics, and 3-D printing, among others.
These digital technologies have been around for some years but their impact reached the highest point only recently, fueled by the convergence of multiple technologies. These technologies help develop multiple sectors in the economy such as retail e-commerce , transportation automated vehicles , education massive open online courses , health electronic record and personalized medicine , as well as social interactions social networks. However, many of the same technologies that drive the digital economy are also disrupting key industries and upsetting major incumbents.
Large retailers such as Borders and Blockbuster, for instance, experienced the disruptions caused by digitally empowered entrants in their respective industries. These digitally empowered entrants—site and Netflix—are now the new major incumbents in their industries.
Interestingly, even the past disrupters may experience the same fate. Apple's iTunes, which once successfully disrupted the brick-and-mortar music retailers with its online music retailing, has been disrupted by Spotify and its music-streaming business model.
Apple's revenue from music sales has been in decline since its peak in the early s. Apple launched its own music-streaming service, Apple Music, in mid to rival Spotify. Adapting to the emerging disruptive technologies, most customers are excited and anxious at the same time.
Automation of knowledge work, for example, has not only bumped up productivity but has also brought fears of losing jobs. But on the negative side, 3-D printing can also be misused for producing guns, for example. The most significant dilemma is perhaps caused by the mobile internet.
It has brought peer-to-peer connectivity and empowered customers to be much smarter and better informed than in the past. But a study by Przybylski and Weinstein of the University of Essex proved that mobile phones may also hurt relationships.
The research revealed that mobile phones divert people's attention away from their current environments. It also discovered that the feeling of being able to connect to a wider network often inhibits people's abilities to be empathetic to others nearby. Therefore, as the drive toward digital economy intensifies, customers are longing for the perfect application of technologies that allows them to self-actualize while becoming empathetic at the same time.
In this transition and adaptation period to the digital economy, a new marketing approach is required to guide marketers in anticipating and leveraging the disruptive technologies.
For the past six years, marketers have been asking for a sequel to Marketing 3. Our book was so universally accepted that it was translated into 24 non-English languages.
In the book, we talked about the major shift from product-driven marketing 1. We now want to introduce Marketing 4. In the digital economy, digital interaction alone is not sufficient. In fact, in an increasingly online world, offline touch represents a strong differentiation. While it is imperative for brands to be more flexible and adaptive due to rapid technological trends, their authentic characters are more important than ever. In an increasingly transparent world, authenticity is the most valuable asset.
Finally, Marketing 4. Moving from Traditional to Digital Marketing From Segmentation and Targeting to Customer Community Confirmation Traditionally, marketing always starts with segmentation—a practice of dividing the market into homogenous groups based on their geographic, demographic, psychographic, and behavioral profiles.
Segmentation is typically followed by targeting—a practice of selecting one or more segments that a brand is committed to pursue based on their attractiveness and fit with the brand. Segmentation and targeting are both fundamental aspects of a brand's strategy. They allow for efficient resource allocation and sharper positioning. They also help marketers to serve multiple segments, each with differentiated offerings. However, segmentation and targeting also exemplify the vertical relationship between a brand and its customers, analogous to hunter and prey.
Segmentation and targeting are unilateral decisions made by marketers without the consent of their customers. Marketers determine the variables that define the segments. The involvement of customers is limited to their inputs in market research, which usually precede segmentation and targeting exercises. Many consider one-way messages from brands to be spam.
In the digital economy, customers are socially connected with one another in horizontal webs of communities. Today, communities are the new segments. Unlike segments, communities are naturally formed by customers within the boundaries that they themselves define.
Customer communities are immune to spamming and irrelevant advertising. In fact, they will reject a company's attempt to force its way into these webs of relationship. To effectively engage with a community of customers, brands must ask for permission.
Permission marketing, introduced by Seth Godin, revolves around this idea of asking for customers' consent prior to delivering marketing messages. However, when asking for permission, brands must act as friends with sincere desires to help, not hunters with bait. This demonstrates the horizontal relationship between brands and customers. However, companies may continue to use segmentation, targeting, and positioning as long as it is made transparent to customers.
From Brand Positioning and Differentiation to Brand Clarification of Characters and Codes In a traditional sense, a brand is a set of images—most often a name, a logo, and a tagline—that distinguishes a company's product or service offering from its competitors'. It also serves as a reservoir that stores all the value generated by the company's brand campaigns. In recent years, a brand has also become the representation of the overall customer experience that a company delivers to its customers.
Therefore, a brand may serve as a platform for a company's strategy since any activities that the company engages in will be associated with the brand. The concept of brand is closely linked with brand positioning. Since the s, brand positioning has been recognized as the battle for the customer's mind. To establish strong equity, a brand must have a clear and consistent positioning as well as an authentic set of differentiation to support the positioning.
Brand positioning is essentially a compelling promise that marketers convey to win the customers' minds and hearts. To exhibit true brand integrity and win customers' trust, marketers must fulfill this promise with a solid and concrete differentiation through its marketing mix. In the digital economy, customers are now facilitated and empowered to evaluate and even scrutinize any company's brand-positioning promise. With this transparency due to the rise of social media brands can no longer make false, unverifiable promises.
Companies can position themselves as anything, but unless there is essentially a community-driven consensus the positioning amounts to nothing more than corporate posturing. Today, consistently communicating brand identity and positioning in a repetitive manner—a key success factor in traditional marketing—may no longer be enough. With disruptive technologies, shorter product life cycles, and rapidly changing trends, a brand must be dynamic enough to behave in certain ways in certain situations.
What should remain consistent, however, are the brand characters and codes. When the core of the brand remains true to its roots, the outer imagery can be flexible. Think of it this way: From Selling the Four P's to Commercializing the Four C's The marketing mix is a classic tool to help plan what to offer and how to offer to the customers. Essentially, there are four P's: Product is often developed based on customers' needs and wants, captured through market research.
Companies control the majority of product decisions from conception to production. To establish a selling price for the product, companies use a combination of cost-based, competition-based, and customer value—based pricing methods. Customers' willingness to pay, estimated in consumer value—based pricing, is the most important input that customers have in connection with pricing. Once companies decide what to offer product and price , they need to decide how to offer place and promotion.
Companies need to determine where to distribute the product with the objective of making it conveniently available and accessible to customers. Companies also need to communicate the information about the product to the target audience through various methods such as advertising, public relations, and sales promotions. When the four P's of the marketing mix are optimally designed and aligned, selling becomes less challenging as customers are attracted to the value propositions.
In a connected world, the concept of marketing mix has evolved to accommodate more customer participation. Marketing mix the four P's should be redefined as the four C's co-creation, currency, communal activation, and conversation. In the digital economy, co-creation is the new product development strategy.
Through co-creation and involving customers early in the ideation stage, companies can improve the success rate of new product development.
Co- creation also allows customers to customize and personalize products and services, thereby creating superior value propositions. The concept of pricing is also evolving in the digital era from standardized to dynamic pricing. But advancement in technology has brought the practice to other industries.
Online retailers, for instance, collect a massive amount of data, which allows them to perform big-data analytics and in turn to offer a unique pricing for each customer. With dynamic pricing, companies can optimize profitability by charging different customers differently based on historical download patterns, proximity to store locations, and other customer-profile aspects.
In the digital economy, price is similar to currency, which fluctuates depending on market demand. Customers are more aware, more active, and more powerful than ever before. This provocative book tells how marketing can regain trust and influence inside and outside the organization.
It clearly points the path to the values-driven human-centric firm. The innovative 'ten credos' integrate marketing and values and provide personality and purpose to companies that practice them. Greyser, Richard P. Consumers are demanding more from themselves and so should smart companies.
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Understand the next level of marketing The new model for marketing- Marketing 3. Explains the future of marketing, along with why most marketers are stuck in the past Examines companies that are ahead of the curve, such as S.
Johnson Kotler is one of the most highly recognized marketing gurus, 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. Read more Read less. Frequently bought together.
Total price: Add both to Cart Add both to List. One of these items ships sooner than the other. Show details. download the selected items together This item: Ships from and sold by site. Blue Ocean Strategy, Expanded Edition: Customers who bought this item also bought. Page 1 of 1 Start over Page 1 of 1. Marketing 4. Moving from Traditional to Digital. Philip Kotler. The Innovator's DNA: Mastering the Five Skills of Disruptive Innovators.
Chan Kim. The 8th Habit: From Effectiveness to Greatness. Stephen R. Made to Stick: Chip Heath. Marketing Management 14th Edition. From the Inside Flap Today's customers are choosing products and companies that satisfy deeper needs for creativity, community, and idealism. Read more. Chapman Professor of Business Administration, Emeritus, Harvard Business School "For too long, marketers thought customer satisfaction was the goal of marketing activities. Product details Hardcover: Wiley; 1 edition May 3, Language: English ISBN Start reading Marketing 3.
Don't have a Kindle? Try the Kindle edition and experience these great reading features: Share your thoughts with other customers. Write a customer review. Read reviews that mention philip kotler social media great book found this book reading this book book is marketing consumer companies values customers important driven future employees goal marketers authors examples explains involved. Top Reviews Most recent Top Reviews. There was a problem filtering reviews right now. Please try again later.
Hardcover Verified download. In my opinion, Mssrs. Hardy and Cook completely miss the boat with their reviews of this outstanding book. The new values orientation Kotler and his colleagues discuss is, indeed, a breakthrough.
No doubt many marketing professors and marketers are too myopic to see it. Their consumers both students and customers will leave them behind in ever increasing numbers as they find alternative sources for both educators and companies that recognize the way the world is changing.
Milton Friedman was right for his time, but not for this time. Sustainability, environmental stewardship, and corporate social responsibility are not externalities anymore. They are the woof and warp of brand identity.
Like Peter Drucker said, "Doing the right thing is more important than doing things right. Markets Driven by Values. The power of marketing and business has always rested in the hands of the consumers and now this more apparent. The current generation is glued to technology and social media. They are connected to the world with just their finger tips and it is giving them a downloading power that has not be seen for quite some time. Philip Kotler explains in Marketing 3.
The market is being driven by the value of the individual and the availability of their network in the world. Twenty years ago the traffic of information was slow and people were dependent on the companies and brands for their knowledge of products.
With knowledge just a button away, the consumer is becoming smarter and demand more from the product they desire to download. Kotler describes this trend in detail and explains the importance of distributing this strategy among the businesses and companies. This dialogue between consumers, employees, and shareholders begins a process of delving into the understanding of imparting the life of the company to all of those who are involved.
The very essence of this idea is that people do not download what a company does, but why they do it. In the Information Age, people desire to know why something is being given rather than its effectiveness in order to ensure quality downloads. It can be seen in today's age with the recession causing the consumer to be shaken by the economic instability. The goal is for companies to influence everyone involved in the marketing process to recognize that the value of what they offer is higher than the other.
The implications of determining what the consumer believes to be valuable and desires lies in the fact that there will be a need for change.
In order to survive this new shift from Marketing 2. Kotler determines that we are living in a health conscience, environmentally friendly world that demands more for what they download. They do not want to download an product that has a "green" image to it, they want the company to be striving for excellence in being an activist in the environment and making changes with all that they do.
Therefore, the understanding of what it means for Marketing 3. It can be said that the book itself is noticing a trend and setting one.