Marketing 3.0 E-Book

Philip Kotler

• Herausgeber: John Wiley & Sons
• Kategorie: Fachliteratur
• Sprache: Englisch

Seitenzahl: 235

Veröffentlichungsjahr: 2010

Beschreibung

Understand the next level of marketing The new model for marketing-Marketing 3.0-treats customers not as mere consumers but as the complex, multi-dimensional human beings that they are. Customers, in turn, are choosing companies and products that satisfy deeper needs for participation, creativity, community, and idealism. In Marketing 3.0, world-leading marketing guru Philip Kotler explains why the future of marketing lies in creating products, services, and company cultures that inspire, include, and reflect the values of target customers. * 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. C. 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. Marketing 3.0 is the unmatched guide to getting out front of this new tide sweeping through the nature of marketing.

Leseprobe

Table of Contents

Title Page

Copyright Page

Dedication

Foreword

PREFACE

NOTE ON THE ORIGIN OF THIS BOOK

ABOUT THE AUTHORS

PART I - TRENDS

CHAPTER ONE - Welcome to Marketing 3.0

WHY MARKETING 3.0?

THE AGE OF PARTICIPATION AND COLLABORATIVE MARKETING

THE AGE OF GLOBALIZATION PARADOX AND CULTURAL MARKETING

THE AGE OF CREATIVE SOCIETY AND HUMAN SPIRIT MARKETING

MARKETING 3.0: COLLABORATIVE, CULTURAL, AND SPIRITUAL

NOTES

CHAPTER TWO - Future Model for Marketing 3.0

THE PAST 60 YEARS OF MARKETING: A BRIEF RETROSPECT

THE FUTURE OF MARKETING: HORIZONTAL NOT VERTICAL

SHIFT TO HUMAN SPIRIT: THE 3i MODEL

SHIFT TO VALUES-DRIVEN MARKETING

MARKETING 3.0: THE MEANING OF MARKETING AND THE MARKETING OF MEANING

NOTES

PART II - STRATEGY

CHAPTER THREE - Marketing the Mission to the Consumers

CONSUMERS ARE THE NEW BRAND OWNERS!

GOOD MISSION DEFINED

SUMMARY: PROMISE OF TRANSFORMATION, COMPELLING STORIES, AND CONSUMER INVOLVEMENT

NOTES

CHAPTER FOUR - Marketing the Values to the Employees

VALUES UNDER FIRE

VALUES DEFINED

VALUES WILL DO YOU GOOD

PRACTICE WHAT YOU PREACH

SUMMARY: SHARED VALUES AND COMMON BEHAVIOR

NOTES

CHAPTER FIVE - Marketing the Values to the Channel Partners

GROWTH MIGRATION AND COLLABORATION IMPERATIVE

CHANNEL PARTNERS IN MARKETING 3.0

SUMMARY: VALUES-DRIVEN CHANNEL PARTNERSHIP

NOTES

CHAPTER SIX - Marketing the Vision to the Shareholders

SHORT-TERMISM HURTS THE ECONOMY

SUSTAINABILITY AND SHAREHOLDER VALUE

MARKETING VISIONARY STRATEGY

SUMMARY: BUSINESS CASE FOR MARKETING 3.0

NOTES

PART III - APPLICATION

CHAPTER SEVEN - Delivering Socio-Cultural Transformation

MARKETING TO THE POST-GROWTH MARKET

FROM PHILANTHROPY TO TRANSFORMATION

THREE STEPS TO TRANSFORMATION

SUMMARY: BUILDING TRANSFORMATION INTO YOUR COMPANY’S CHARACTER

NOTES

CHAPTER EIGHT - Creating Emerging Market Entrepreneurs

FROM PYRAMID TO DIAMOND, FROM AID TO ENTREPRENEURSHIP

THREE ENABLING FORCES AND FOUR REQUIREMENTS

THE MEANING OF SOCIAL BUSINESS ENTERPRISE

MARKETING FOR POVERTY ALLEVIATION

SUMMARY: ALLEVIATING POVERTY BY ENCOURAGING ENTREPRENEURSHIP

NOTES

CHAPTER NINE - Striving for Environmental Sustainability

THE THREE ACTORS IN SUSTAINING THE ENVIRONMENT

THE COLLABORATION OF THE INNOVATOR, THE INVESTOR, AND THE PROPAGATOR

TARGETING COMMUNITIES FOR GREEN MARKETING

SUMMARY: GREEN INNOVATION FOR SUSTAINABILITY

NOTES

CHAPTER TEN - Putting It All Together

10 CREDOS OF MARKETING 3.0

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

MARKETING 3.0: IT’S TIME TO MAKE A CHANGE!

NOTES

INDEX

Copyright © by 2010 by Philip Kotler, Hermawan Kartajaya, and Iwan Setiawan. All rights reserved.

Published by John Wiley & Sons, Inc., Hoboken, New Jersey.

Published simultaneously in Canada.

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eISBN : 978-0-470-60979-8

“To the next generation of Marketers who will enhancethe social and environmental contributions of themarketing discipline.”

Philip Kotler

“To my first grandson, Darren Hermawan, The NextGreat Marketer.”

Hermawan Kartajaya

“To Louise for her endless support.”

Iwan Setiawan

FOREWORD

According to Alvin Toffler, human civilization can be divided into three waves of the economy. The first wave is the Agriculture Age, in which the most important capital is the land for agriculture. My country, Indonesia, is undoubtedly rich in this type of capital. The second is the Industrial Age following the Industrial Revolution in England and the rest of Europe. The essential kinds of capital in this age are machines and the factory. The third era is the Information Age, where mind, information, and high tech are the imperative types of capital to succeed. Today, as humanity embraces the challenge of global warming, we are moving toward the fourth wave, which is oriented to creativity, culture, heritage, and the environment. In leading Indonesia, this is my future direction.

When I read this book, I could see that marketing is also moving toward the same direction. Marketing 3.0 relies heavily on the marketers’ ability to sense human anxieties and desires, which are rooted in creativity, culture, heritage, and the environment. This is even more relevant for Indonesia because the country is known for its diversity in culture and heritage. Indonesia is also a very values-driven country. Spirituality has always been the central part of our lives.

I am happy with the examples in the book of successful multinational companies that support Millenium Development Goals for reducing poverty and unemployment in developing countries. I believe that public-private partnership has always been a strong fundamental for economic growth, especially in a developing country. This book is also very supportive for my mission to shift poor people at the bottom of the pyramid in Indonesia to the middle of the pyramid. It also supports the nation’s efforts to preserve the environment as our strongest asset.

In summary, I am proud to have two renowned marketing gurus putting their energy and effort into writing a book for a better world. Congratulations for Philip Kotler, Hermawan Kartajaya, and Iwan Setiawan for this mind-stimulating book. I hope that anyone who reads this book will be encouraged to make a difference in the world we are living in.

—Susilo Bambang Yudhoyono President of the Republic of Indonesia

PREFACE

The world is going through a period of rapid and wrenching changes. The recent financial meltdown has unfortunately increased the level of poverty and unemployment, developments that are now being fought with stimulus packages around the world to restore confidence and economic growth. In addition, climate change and rising pollution are challenging countries to limit the release of carbon dioxide into the atmosphere, but at the cost of imposing a higher burden on business. Furthermore, the rich countries of the West are now experiencing a much slower rate of growth, and economic power is rapidly shifting to countries in the East that are experiencing higher rates of growth. And finally, technology is shifting from the mechanical world to the digital world—the Internet, computers, cell phones, and social media—which is having a profound impact on the behavior of producers and consumers.

These and other changes will require a major rethinking of marketing. The concept of marketing can be seen as the balancing concept to that of macroeconomics. Whenever the macroeconomic environment changes, so will consumer behavior change, and this will lead marketing to change. Over the past 60 years, marketing has moved from being product-centric (Marketing 1.0) to being consumer-centric (Marketing 2.0). Today we see marketing as transforming once again in response to the new dynamics in the environment. We see companies expanding their focus from products to consumers to humankind issues. Marketing 3.0 is the stage when companies shift from consumer-centricity to human-centricity and where profitability is balanced with corporate responsibility.

We see a company not as a sole and self-sustaining operator in a competitive world but as a company that operates with a loyal network of partners—employees, distributors, dealers, and suppliers. If the company chooses its network partners carefully, and their goals are aligned and the rewards are equitable and motivating, the company and its partners combined will become a powerful competitor. To achieve this, the company must share its mission, vision, and values with its team members so that they act in unison to achieve their goals.

We describe in this book how a company can market its mission, vision, and values to each of its major stakeholders. The company gets its profits by creating superior value for its customers and stakeholder partners. We hope that the company views its customers as its strategic starting point and wants to address them in their full humanity and with attention to their needs and concerns.

The book is structured into three key parts. In Part I, we summarize the key business trends that shape the human-centric marketing imperative and lay the foundation for Marketing 3.0. In Part II, we show how the company can market its corporate vision, mission, and values to each of its key stakeholders—consumers, employees, channel partners, and shareholders. In Part III, we share their thoughts on several key implementations of Marketing 3.0 for solving global issues such as wellness, poverty, and environmental sustainability and how corporations can contribute by implementing the human-centric business model. Finally, the Epilogue chapter summarizes the 10 key ideas of Marketing 3.0 with select examples of companies that embrace the concept in their business model.

NOTE ON THE ORIGIN OF THIS BOOK

The idea of Marketing 3.0 was first conceptualized in Asia back in November 2005 by a group of consultants at MarkPlus, a Southeast Asian-based marketing services firm led by Hermawan Kartajaya. After two years of co-creation to enhance the concept, Philip Kotler and Hermawan Kartajaya launched the draft manuscript at the 40th anniversary of the Association of Southeast Asian Nations (ASEAN) in Jakarta. The only G-20 member in Southeast Asia, Indonesia is a nation where human centricity and the character of spirituality overcome the challenges of diversity. The president of the United States, Barack Obama, spent four years of his early education in Indonesia to learn about the human centricity of the East. Marketing 3.0 was born and shaped in the East, and we are honored to have a Foreword by Susilo Bambang Yudhoyono, President of the Republic of Indonesia.

Iwan Setiawan, one of the MarkPlus consultants who initiated the concept, collaborated with Philip Kotler at Northwestern University’s Kellogg School of Management—one of the world’s top business schools in the West—to enhance the relevance of Marketing 3.0 with the emergence of the new world economic order and the rise of the digital world.

ABOUT THE AUTHORS

Philip Kotler, the S.C. Johnson & Son Distinguished Professor of International Marketing at the Kellogg School of Management, Northwestern University, is also widely regarded as the Father of Modern Marketing. He is ranked by the Wall Street Journal as one of the top six most influential business thinkers.

Hermawan Kartajaya is the founder and CEO of MarkPlus, Inc., and is one of the “50 Gurus Who Have Shaped the Future of Marketing,” according to the Chartered Institute of Marketing, United Kingdom.

Iwan Setiawan (Kellogg School of Management 2010) is a senior consultant at MarkPlus, Inc.

PART I

TRENDS

CHAPTER ONE

Welcome to Marketing 3.0

WHY MARKETING 3.0?

Over the years, marketing has evolved through three stages that we call Marketing 1.0, 2.0, and 3.0. Many of today’s marketers still practice Marketing 1.0, some practice Marketing 2.0, and a few are moving into Marketing 3.0. The greatest opportunities will come to marketers practicing 3.0.

Long ago, during the industrial age—when the core technology was industrial machinery—marketing was about selling the factory’s output of products to all who would buy them. The products were fairly basic and were designed to serve a mass market. The goal was to standardize and scale up to bring about the lowest possible costs of production so that these goods could be priced lower and made more affordable to more buyers. Henry Ford’s Model T automobile epitomized this strategy; said Ford: “Any customer can have a car painted any color that he wants so long as it is black.” This was Marketing 1.0 or the product-centric era.

Marketing 2.0 came out in today’s information age—where the core is information technology. The job of marketing is no longer that simple. Today’s consumers are well informed and can easily compare several similar product offerings. The product value is defined by the consumer. Consumers differ greatly in their preferences. The marketer must segment the market and develop a superior product for a specific target market. The golden rule of “customer is king” works well for most companies. Consumers are better off because their needs and wants are well addressed. They can choose from a wide range of functional characteristics and alternatives. Today’s marketers try to touch the consumer’s mind and heart. Unfortunately, the consumer-centric approach implicitly assumes the view that consumers are passive targets of marketing campaigns. This is the view in Marketing 2.0 or the customer-oriented era.

Now, we are witnessing the rise of Marketing 3.0 or the values-driven era. Instead of treating people simply as consumers, marketers approach them as whole human beings with minds, hearts, and spirits. Increasingly, consumers are looking for solutions to their anxieties about making the globalized world a better place. In a world full of confusion, they search for companies that address their deepest needs for social, economic, and environmental justice in their mission, vision, and values. They look for not only functional and emotional fulfillment but also human spirit fulfillment in the products and services they choose.

Like consumer-oriented Marketing 2.0, Marketing 3.0 also aims to satisfy the consumer. However, companies practicing Marketing 3.0 have bigger missions, visions, and values to contribute to the world; they aim to provide solutions to address problems in the society. Marketing 3.0 lifts the concept of marketing into the arena of human aspirations, values, and spirit. Marketing 3.0 believes that consumers are complete human beings whose other needs and hopes should never be neglected. Therefore, Marketing 3.0 complements emotional marketing with human spirit marketing.

In times of global economic crisis, Marketing 3.0 gains more relevance to the lives of the consumers as they are impacted more by rapid social, economic, and environmental change and turbulence. Diseases become pandemics, poverty increases, and environmental destruction is under way. Companies practicing Marketing 3.0 provide answers and hope to people confronting such issues and, therefore, touch consumers at a higher level. In Marketing 3.0, companies differentiate themselves by their values. In turbulent times, this differentiation is arguably a strong one.

Table 1.1 summarizes the comparison of Marketing 1.0, 2.0, and 3.0 from comprehensive viewpoints.

To understand Marketing 3.0 better, let us examine the rise of three major forces that shape the business landscape toward Marketing 3.0: the age of participation, the age of globalization paradox, and the age of creative society. Observe how these three major forces transform consumers to be more collaborative, cultural, and human spirit-driven. Understanding this transformation will lead to a better understanding of Marketing 3.0 as a nexus of collaborative, cultural, and spiritual marketing.

THE AGE OF PARTICIPATION AND COLLABORATIVE MARKETING

Technological advances have brought about huge changes in consumers, markets, and marketing over the past century. Marketing 1.0 was initiated by production technology development during the Industrial Revolution. Marketing 2.0 came into being as a result of information technology and the Internet. Now, new wave technology becomes the major driver for the birth of Marketing 3.0.

Since early 2000, information technology has penetrated the mainstream market and further developed into what is considered the new wave technology. New wave technology is technology that enables connectivity and interactivity of individuals and groups. New wave technology consists of three major forces: cheap computers and mobile phones, low-cost Internet, and open source.1 The technology allows individuals to express themselves and collaborate with others. The emergence of new wave technology marks the era that Scott McNealy, Chairman of Sun Microsystems, declared as the age of participation. In the age of participation, people create news, ideas, and entertainment as well as consume them. New wave technology enables people to turn from being consumers into prosumers.

Table 1.1 Comparison of Marketing 1.0, 2.0 and 3.0

One of the enablers of new wave technology is the rise of social media. We classify social media in two broad categories. One is the expressive social media, which includes blogs, Twitter, YouTube, Facebook, photo sharing sites like Flickr, and other social networking sites. The other category is the collaborative media, which includes sites such as Wikipedia, Rotten Tomatoes, and Craigslist.

Expressive Social Media

Let us examine the impact of expressive social media on marketing. In early 2008, Technorati found 13 million active blogs around the world.2 As with readership of print media, readership of blogs varies among countries. Unlike in Japan where 74 percent of Internet users read blogs, only around 27 percent of Internet users in the United States read blogs. Although the readership is low, 34 percent of blog readers in the United States are influencers. As a result, U.S. blogs stimulate follow-up actions by 28 percent of their readers.3 Seth Godin, a well-known marketer, runs a popular web site that offers a new idea every day to influence thousands of people who have elected to receive his feed.

Another popular form of blogging, and one of the fastest growing forms of social media is Twitter. From April 2008 to April 2009, the number of Twitter users has grown 1,298 percent.4 The microblogging site allows members to broadcast tweets of 140 characters or fewer to their followers. It is considered much simpler than blogging because users can easily send tweets from handheld devices such as iPhones and Blackberrys. Through Twitter, users can share their thoughts, their activities, and even their moods with friends or fans. Actor Ashton Kutcher reportedly hit the 1 million followers mark on Twitter, beating out even CNN.

Many of the blogs and tweets are personal where a person shares news, opinion, and ideas with chosen others. Another set of blogs and tweets are set up by persons who want to comment on the news or offer opinions and small essays on anything crossing their minds. Other bloggers or twitterers might comment on companies and products, supporting them or criticizing them. An angry blogger or twitterer with a widespread audience has the potential to dissuade many consumers from wanting to do business with a particular company or organization.

The popularity of blogging and twittering has reached the corporate world. IBM, for example, encourages its employees to create their own blogs where they can talk freely about their company as long as they adhere to certain guidelines. Another example is General Electric, which established a Tweet Squad, a group of young employees who train older employees to use social media.

People are also creating short video clips and sending them to YouTube for the world to see. Many are aspiring film-makers who hope their creativity will be recognized and lead to broader opportunities. Other video clips are prepared by organizations to enlist support for or against some cause or activity. Still other video clips are prepared by companies to dramatize their products and service offerings. One high-profile campaign on YouTube was Marc Ecko’s Air Force One hoax. To demonstrate its affinity for graffiti art, the clothing company made a video that showed a couple of youngsters spraying the words “Still Free” on Air Force One. It later admitted that the plane on the video was not Air Force One and it just wanted to create a pop-culture sensation as part of its brand-building efforts on YouTube.

As social media becomes increasingly expressive, consumers will be able to increasingly influence other consumers with their opinions and experiences. The influence that corporate advertising has on shaping buying behavior will diminish accordingly. In addition, consumers are getting more involved in other activities such as video games, watching DVDs, using the computer, and they are watching fewer ads.

Because social media is low-cost and bias-free, it will be the future for marketing communications. Connections between friends on social networking sites such as Facebook and MySpace can also help companies gain insights into the market. Researchers at IBM, Hewlett-Packard, and Microsoft are mining social networking data to do profiling and design better communication approaches for their employees and consumers.5

Collaborative Social Media

Consider also collaborative social media that applies open sourcing. A decade ago, people knew that software could be open sourced and developed collaboratively. People knew Linux. However, no one considered that this kind of collaboration could be applied to other industries. Who would have imagined an encyclopedia that anyone can edit like Wikipedia?

Wikipedia’s content is contributed to by vast numbers of people who volunteer their time to create entries on countless topics for this community-built encyclopedia. By mid-2009, Wikipedia had developed 235 active language editions with more than 13 million articles (2.9 million in English).6 Compare this with We Are Smarter than Me, a book written by thousands of people. The book is an example of collaboration in traditional book publishing.7 Another example is Craigslist, which aggregates and displays millions of classified ads for free, posing a threat to newspapers that sell advertising space. Owned partly by eBay, the site also becomes the marketplace for a large number of communities placing ads to sell and buy various items.

Collaboration can also be the new source of innovation. In Open Business Models, Chesbrough explained how companies can use crowdsourcing to find new ideas and solutions.8 A company called InnoCentive broadcasts research and development challenges and solicits the best solutions. It welcomes companies that wish to find solutions to their problems (solution seekers) and also individuals, scientists, and researchers who can propose solutions to the problems (problem solvers). Once the best solution is found, InnoCentive will ask the solution seeker to give a cash incentive to the problem solver. Like Wikipedia and Craigslist, InnoCentive becomes a marketplace that facilitates collaboration. This mass collaboration phenomenon is described by Tapscott and Williams in their book, Wikinomics.9

The growing trend toward collaborative consumers has affected business. Marketers today no longer have full control over their brands because they are now competing with the collective power of consumers. This growing trend of consumers taking over the job of marketers is what Wipperfürth anticipated in Brand Hijack. 10 Companies must now collaborate with their consumers. Collaboration begins when marketing managers listen to the consumers’ voices to understand their minds and capture market insights. A more advanced collaboration takes place when consumers themselves play the key role in creating value through cocreation of products and services.

Trendwatching, a large trend research network, summarizes consumers’ motivation for product co-creation. Some consumers enjoy demonstrating their abilities in value-creation for everyone to see. Some consumers want to tailor a product or service to their specific lifestyles. Sometimes, consumers target reward money given by companies for co-creation efforts. Others see co-creation as an opportunity to secure employment. There are also people who undertake cocreation just for fun. 11

Procter & Gamble (P&G) is known for its connect and develop strategy, which replaces its traditional research and development approach. The P&G model resembles a starfish, which, according to Brafman and Beckstrom, is a good metaphor for companies of the future because it has no head and is more like groups of cells working together. 12 The open innovation program leverages P&G’s network of entrepreneurs and suppliers around the world to provide fresh and innovative product ideas. The program contributes around 35 percent of P&G’s revenue.13 Some of the well-known products invented through connect and develop include Olay Regenerist, Swiffer Dusters, and the Crest SpinBrush. The program proves that collaboration can work in industries other than information technology.

Besides helping companies to develop products, consumers can also contribute ideas for advertising. Consider the “Free Doritos” advertisement. The user-generated ad won the top spot at the 21st Annual USA Today Super Bowl Ad Meter, defeating ads made by professional agencies. The victory proved that user-generated content can often reach consumers better because it is more relevant and more accessible.

This increase in consumer participation and collaboration is examined in The Future of Competition.14 Authors Prahalad and Ramaswamy argue that consumer roles are changing. Consumers are no longer isolated individuals, rather they are connected with one another. In making decisions, they are no longer unaware but are informed. They are no longer passive but are active in giving useful feedback to companies.

Therefore marketing evolved. In the first stage, marketing was transaction oriented, focused on how to make a sale. In the second stage, marketing became relationship oriented, how to keep a consumer coming back and buying more. In the third stage, marketing has shifted to inviting consumers to participate in the company’s development of products and communications.

Collaborative marketing is the first building block of Marketing 3.0. Companies practicing Marketing 3.0 aim to change the world. They cannot do it alone. In the interlinked economy, they must collaborate with one another, with their shareholders, with their channel partners, with their employees, and with their consumers. Marketing 3.0 is a collaboration of business entities with similar sets of values and desires.

THE AGE OF GLOBALIZATION PARADOX AND CULTURAL MARKETING

Besides the impact of technology on shaping new consumer attitudes toward Marketing 3.0, another major force has been globalization. Globalization is driven by technology. Information technology enables the exchange of information among nations, corporations, and individuals around the world, while transportation technology facilitates trade and other physical exchange in global value chains. Like technology, globalization reaches everyone around the world and creates an interlinked economy. But unlike technology, globalization is a force that stimulates counterbalance. In search of the right balance, globalization often creates paradoxes.

Consider the year 1989, which symbolized the rise of the globalization paradox. In 1989, the Chinese government used its military strength to put down a protest in Tiananmen Square. A series of pro-democracy demonstrations led by students, intellectuals, and labor activists resulted in a military crackdown that left between 400 and 800 civilians dead and between 7,000 and 10,000 injured. In the same year in Europe, another historical event occurred. The Berlin Wall, which had separated West Germany from East Germany, was knocked down, laying to rest a tangible symbol of the Cold War. David Hasselhoff, standing on the Berlin Wall, performed his popular song “Looking for Freedom.” The two 1989 events are paradoxical events. The Tiananmen Square event marked the fall of the pro-democracy movement in China, which halted movement toward freedom, while the dismantling of the Berlin Wall represented the beginning of a new world of freedom and democracy. Globalization liberates but at the same time puts pressure on nations and people around the world.

Consider, also, the two opposing views of Thomas Friedman and Robert Samuelson, representing globalization and nationalism, respectively. On the one hand, Friedman argued in The World Is Flat15 that the world is now without borders. The flow of goods, services, and people can move seamlessly because of cheap transportation and information technology. On the other hand, Samuelson argued in his article, “The World Is Still Round,”16