Marketing 4.0

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.

Acknowledgments xiii

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

Index 171

PHILIP KOTLER is the S.C. Johnson & Son Distinguished Professor of International Marketing at the Kellogg School of Management at Northwestern University. He is author of more than fifty books, including the globally popular Marketing Management, now in its fifteenth edition.

HERMAWAN KARTAJAYA is the founder of MarkPlus, Inc., the largest marketing consulting firm in Indonesia.

IWAN SETIAWAN is COO of MarkPlus, Inc.

Since Marketing 3.0 inspired the world to embrace and explore human-centric marketing, pioneers in the field have applied advanced technologies to open new insights into who our customers are and how they make decisions. The valuable paradox of big data analytics is it can create more personalized products and personal services, and Marketing 4.0 maps out an authoritative approach to taking customers from awareness to advocacy.

For this highly anticipated guide, the father of modern marketing Philip Kotler rejoins thought leaders Hermawan Kartajaya and Iwan Setiawan from MarkPlus, Inc. to share tangible ways marketers can influence people on varied paths along the customer journey. In fact, the traditional path to purchase (aware, appeal, ask, and act) is expanded to include advocate because the opinions of our family and friends have enormous impact on buying decisions— and fully updated coverage walks you through how it happens, the ways to encourage it, and strategies for growing one customized experience at a time using powerful metrics and innovative best practices.

Moving from a traditional to digital marketing mindset comes easy with the practical advice and intuitive explanations you can use and benefit from the very first day. Chapter summaries highlight covered topics to enable this guidebook to double as an everyday reference, and reflection questions jumpstart your personal discovery as well as focus meeting discussions when it comes time to bring the entire organization onboard.

This peerless resource guide completely prepares you to leap ahead of the curve without any prior knowledge of analytics or IT by enabling you to:

• Gain data-driven insight into the new ways customers are spending and the three driving subcultures: youth, women, and netizens
• Examine firsthand examples of Marketing 4.0 boosting productivity by engaging customers at every touchpoint along their real-world paths through today's digital marketplace
• Redefine customer engagement in the digital era, including human-centric marketing, creating customer conversations, and omnichannel strategies

Looking at marketing in an entirely new way may seem overwhelming, but with the easy-to-use framework in Marketing 4.0, you can quickly get down to succeeding at what has always mattered—customer impressions.

Praise for MARKETING 4.0

"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

"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