The marketplace is changing and if brands wants to survive, then they need to transcend the average and become wonderful marketers who connect with their customers.
Unfortunately, most brands still use traditional, outdated, and ineffective methods to try and connect with consumers.
Rather that staying with a process that merely feels safe, instead, every brand that wants to succeed should use Marketing 3.0. This process can be taught as a way to engage, serve, and grow their consumers.
A Brief Summary of Marketing 3.0.
Marketing 3.0 is a term created by Philip Kotler in the book Marketing 3.0: From Products to Customers to the Human Spirit. The concept is that marketing changes and evolves like everything else in business and technology.
Instead of marketing messages going to a passive audience, marketing has transformed into an interactive communication measured by customer engagement and sharing, instead of clicks, impressions, and open rates.
The new marketing is holistic and focuses on the consumer's, mind, soul, emotions, and body. Companies that leverage Marketing 3.0 will have an edge because they can market their product or service as part of a greater mission with social impact.
The 10 Commandments of Marketing 3.0.
In Marketing 3.0: From Products to Customers to the Human Spirit, Philip Kotler writes ten rules in the new marketing. Here they are:
- Treat your customers with love and your competitors with respect.
- Be ready for transformation and change.
- Make your values clear and support them.
- Focus on the segment that can give you the greatest benefits.
- Price fairly to convey your quality.
- Help potential customers to connect with your company and its products.
- Look upon your customers as customers for life.
- View each business as a service. Because each product is tied to a service.
- Improve your business process every day.
- Consider various aspects and information—not just finance related—before making a decision.
A Short History of Marketing.
Business is dynamic and changes over time. The companies that survive are the ones that change to better meet consumer needs and demands.
To best understand Marketing 3.0, it's important to know how marketing has changed in the last century.
- 1950's (Post-WWII) -- Marketing focused on product life-cycle. Things like brand image, market segmentation, and marketing audits were the tools of choice within companies.
- 1960's (Growing) -- Marketing began to mature and developed things like the Four P's of Marketing (price, product, promotion, place). This helped companies target consumers more effectively, but most were still marketing lifestyles and features of the brand.
- 1970's (Disruptive) -- Marketing organizations started getting smarted. Instead of mass-marketing, many began to use targeting and positioning techniques. This was good because brands began to be more strategic and leverage the social aspects of marketing.
- 1980's (Big Marketing) -- With the boom of the Reagan years came large-scale and global marketing campaigns. Direct marketing techniques grew exponentially and customer relationship marketing became a focus for many brands.
- 1990's (Targeted) -- With the explosion of the internet, many brands began for the first time to use 1-to-1 marketing campaigns. E-commerce allows companies to market on an emotional and experiential level because consumers were able to be segmented more effectively.
- 2000's (ROI) -- As marketing and technology became more commonplace within organizations, brands began asking about the return on investment (ROI). Things like brand equity, customer equity, social media, and social responsibility became more commonplace. We also started to see tribalism make an entry and customers were segmented.
The Differences Between Marketing 1.0, 2.0, and 3.0
Marketing 1.0 was product-driven.
It focused on features and benefits by selling to the masses. This is the traditional marketing that people think of and is largely ineffective.It's product-driven and emphasizes the functional elements of the product or service.
Marketing 2.0 was created as IT grew within organizations.
Along with IT growth was the ability to drive highly targeted messages by using segmentation and personalization. The goal was to differentiate the product based on the customer's unique needs and wants. Most companies and brands are still in this phase. Marketing 2.0 looks at consumers as somebody to satisfy and build loyalty with by leveraging IT to identify segments.
Marketing 3.0 is driven by customer interaction and consumer relationships to the brand.
For example, hybrid vehicles aren't marketed solely as ways to save gas, they're marketed as ways to contribute to global environmental stewardship.
The idea is how consumers feel about the brand, not necessarily what consumers need. Marketing 3.0 meets the consumers' emotional needs, connects to the consumer through social media, and looks at people instead of segments.
Engagement Matters, Not Just Impressions.
Although data-driven messages can be powerful and effective, organizations need to take this to the next level.
Instead of delivering the right message to to consumers, brands need to be asking themselves, "did the consumer engage with our content and share it?" This is the real metric of value that marketers should be using.
Traditional means of marketing such as print, email, and newsletters can still be valuable, but brands need to leverage social media, influencers, and viral marketing. Data can be a starting point for brands, but organizations should really seek to understand what drives their consumer base, not just their purchasing patterns.
By understanding how consumers engage on an emotional level, brands can connect with consumers on multiple channels such as Facebook, email, and Snapchat.
At the heart of business is competition and who can serve consumers most effectively, quickly, proactively, and profitably. If you are marketing to consumers then you need to immediately do what it takes to leverage marketing 3.0 for your brand.
If you are already using marketing 3.0 principles, then take the time to solidify your position and connect with your consumers in new ways. Remember, those with the happiest consumers will always win.