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- Herausgeber: John Wiley & Sons
- Kategorie: Fachliteratur
- Sprache: Englisch
- Veröffentlichungsjahr: 2021
Rediscover the fundamentals of marketing from the best in the business In Marketing 5.0, the celebrated promoter of the "Four P's of Marketing," Philip Kotler, explains how marketers can use technology to address customers' needs and make a difference in the world. In a new age when marketers are struggling with the digital transformation of business and the changing behavior of customers, this book provides marketers with a way to integrate technological and business model evolution with the dramatic shifts in consumer behavior that have happened in the last decade. Following the pattern presented in his bestselling Marketing X.0 series, Philip Kotler covers the crucial topics necessary to understand modern marketing, including: · Artificial Intelligence for marketing automation · Agile marketing · "Segments of one" marketing · Contextual technology · Facial recognition and voice tech for marketing · The future of Customer Experience (CX) · Transmedia storytelling · The "Whatever-Whenever-Wherever" service delivery · "Everything-As-A-Service" business model · Internet of Things and blockchain for marketing · Virtual and augmented reality marketing · Corporate activism Perfect for traditional and digital marketers, as well as students and teachers of marketing and business, Marketing 5.0 reinvigorates the field of marketing with actionable recommendations and unique insights.
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Table of Contents
Cover
Title Page
Copyright
Dedication
About the Authors
Acknowledgments
PART I: Introduction
CHAPTER 1: Welcome to Marketing 5.0
Marketing 4.0: The Pivot to Digital
It's Time for Marketing 5.0
What Is Marketing 5.0?
How Technology Can Enhance Marketing
Five Components of Marketing 5.0
Summary: Technology for Humanity
PART II: Challenges Marketers Face in a Digital World
CHAPTER 2: Generation Gap
Challenges of Serving Different Generations
The Five Generations
The Life Stages of the Five Generations
Generation Gap and Marketing Evolution
Summary: Marketing to Baby Boomers, X, Y, Z, and Alpha
CHAPTER 3: Prosperity Polarization
The Polarized Society
Why Inclusivity and Sustainability Matter
Aligning Strategies to Sustainable Development Goals
Summary: Creating Inclusivity and Sustainability for Society
CHAPTER 4: Digital Divide
The Digital Divide Still Exists
The Perils and Promises of Digitalization
Technology Can Be Personal
Technology Can Be Social
Technology Can Be Experiential
Summary: Making Tech Personal, Social, and Experiential
PART III: New Strategies for Tech-Empowered Marketing
CHAPTER 5: The Digital-Ready Organization
Case Study: COVID-19 as the Digitalization Accelerator
Digital Readiness Assessment
How Ready Are You to Go Digital?
Strategies to Migrate Customers to Digital Channels
Strategies to Build Digital Capabilities
Strategies to Strengthen Digital Leadership
Summary: One Size Doesn't Fit All
CHAPTER 6: The Next Tech
Next Tech Made Possible
Reimagining Business with the Next Tech
Summary: It's Time for Human-Like Technologies to Take Off
CHAPTER 7: The New CX
Revisiting Customer Experience in the Digital World
Keeping Track of Touchpoints: The 5A's
Human and Machine in the New CX
Leveraging the Next Tech for the New CX: A Checklist
Summary: Machines Are Cool, But Humans Are Warm
PART IV: New Tactics Leveraging Marketing Tech
CHAPTER 8: Data-Driven Marketing
The Segments of One
Setting Up Data-Driven Marketing
Summary: Building Data Ecosystem for Better Targeting
CHAPTER 9: Predictive Marketing
Predictive Marketing Applications
Building Predictive Marketing Models
Summary: Anticipating Market Demand with Proactive Action
CHAPTER 10: Contextual Marketing
Building Smart Sensing Infrastructure
Delivering Three Levels of Personalized Experience
Summary: Making a Personalized Sense-and-Respond Experience
CHAPTER 11: Augmented Marketing
Building Tiered Customer Interfaces
Providing Digital Tools for Frontliners
Summary: Delivering Tech-Empowered Human Interaction
CHAPTER 12: Agile Marketing
Why Agile Marketing?
Setting Up Agile Marketing
Agile Marketing Project Management
Summary: Executing Marketing Initiatives at Pace and Scale
Index
End User License Agreement
List of Illustrations
Chapter 1
FIGURE 1.1 The Next Tech Across the New Customer Experience (CX)
FIGURE 1.2 How Humans Add Value to Tech-Driven Marketing
FIGURE 1.3 The Five Elements of Marketing 5.0
Chapter 2
FIGURE 2.1 The Five Generations and Their Brand Preferences
FIGURE 2.2 Human Life Stages and Key Priorities
FIGURE 2.3 The Five Generations and Marketing Evolution
Chapter 3
FIGURE 3.1 The Polarizing Society
FIGURE 3.2 Market Polarization Across Categories
FIGURE 3.3 The Reasons Behind Corporate Activism
FIGURE 3.4 Inclusive and Sustainable Development in the 17 SDGs
Chapter 4
FIGURE 4.1 Perils and Promises of Digitalization
FIGURE 4.2 Technology Compass: Making It Personal, Social, and Experiential...
Chapter 5
FIGURE 5.1 Digitalization Amid COVID-19
FIGURE 5.2 How COVID-19 Has Affected Different Customer Segments and Industr...
FIGURE 5.3 Digital Readiness by Industry
FIGURE 5.4 Digital Readiness Assessment
FIGURE 5.5 The Digitalization Strategies
Chapter 6
FIGURE 6.1 The Six Enablers of Next Tech
FIGURE 6.2 Bionics: Six Ways Technology Mimics Humans
Chapter 7
FIGURE 7.1 The 5
A
's Customer Path
FIGURE 7.2 The Knowledge Management Hierarchy
FIGURE 7.3 Combining the Strengths of Machines and Humans
FIGURE 7.4 Marketing Technology Use Cases in the New CX
Chapter 8
FIGURE 8.1 Segments-of-One Customer Profiling
FIGURE 8.2 Examples of Data-Driven Marketing Objectives
FIGURE 8.3 Data Matrix Framework
Chapter 9
FIGURE 9.1 Predictive Marketing Applications
FIGURE 9.2 How Predictive Marketing Works
Chapter 10
FIGURE 10.1 Contextual Marketing Mechanism
FIGURE 10.2 The Triggers and Responses in Contextual Marketing
Chapter 11
FIGURE 11.1 Example of Augmented Marketing in Tiered Sales Interface
FIGURE 11.2 Example of Augmented Marketing in Tiered Customer Service Interf...
Chapter 12
FIGURE 12.1 Developing Agile Marketing
FIGURE 12.2 Agile Marketing Worksheet Example
Guide
Cover
Table of Contents
Begin Reading
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PHILIP KOTLER
HERMAWAN KARTAJAYA
IWAN SETIAWAN
MARKETING 5.0
TECHNOLOGY FOR HUMANITY
Copyright © 2021 by John Wiley & Sons, Inc. All rights reserved.
Published by John Wiley & Sons, Inc., Hoboken, New Jersey.
Published simultaneously in Canada.
No part of this publication may be reproduced, stored in a retrieval system, or transmitted in any form or by any means, electronic, mechanical, photocopying, recording, scanning, or otherwise, except as permitted under Section 107 or 108 of the 1976 United States Copyright Act, without either the prior written permission of the Publisher, or authorization through payment of the appropriate per-copy fee to the Copyright Clearance Center, Inc., 222 Rosewood Drive, Danvers, MA 01923, (978) 750-8400, fax (978) 646-8600, or on the Web at www.copyright.com. Requests to the Publisher for permission should be addressed to the Permissions Department, John Wiley & Sons, Inc., 111 River Street, Hoboken, NJ 07030, (201) 748-6011, fax (201) 748-6008, or online at http://www.wiley.com/go/permissions.
Limit of Liability/Disclaimer of Warranty: While the publisher and author have used their best efforts in preparing this book, they make no representations or warranties with respect to the accuracy or completeness of the contents of this book and specifically disclaim any implied warranties of merchantability or fitness for a particular purpose. No warranty may be created or extended by sales representatives or written sales materials. The advice and strategies contained herein may not be suitable for your situation. You should consult with a professional where appropriate. Neither the publisher nor author shall be liable for any loss of profit or any other commercial damages, including but not limited to special, incidental, consequential, or other damages.
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Library of Congress Cataloging-in-Publication Data
Names: Kotler, Philip, author. | Kartajaya, Hermawan, 1947- author. | Setiawan, Iwan, author.
Title: Marketing 5.0 : technology for humanity / Philip Kotler, Hermawan Kartajaya, Iwan Setiawan.
Description: Hoboken, New Jersey : Wiley, [2021] | Includes index.
Identifiers: LCCN 2020046415 (print) | LCCN 2020046416 (ebook) | ISBN 9781119668510 (hardback) | ISBN 9781119668572 (adobe pdf) | ISBN 9781119668541 (epub)
Subjects: LCSH: Marketing. | Technology.
Classification: LCC HF5415 .K685 2021 (print) | LCC HF5415 (ebook) | DDC 658.8—dc23
LC record available at https://lccn.loc.gov/2020046415
LC ebook record available at https://lccn.loc.gov/2020046416
COVER DESIGN: PAUL MCCARTHY
COVER ART: © OXYGEN | GETTY IMAGES
Marketing's purpose always is to enhance people's lives and contribute to the Common Good.
—Philip Kotler
To all Asians, especially my Asia Marketing Federation brothers and sisters. We at MarkPlus, Inc. are very proud to collaborate with Philip Kotler as a knowledge lab for many books since 1998, including the Marketing X.0 series.
—Hermawan Kartajaya
Dedicated to the loving memory of my mom, Shinta, and my daughter, Keyvlin, who passed away during the writing of this book. Thank you to my family—my dad, Setiawan, my sister, Sisca, my wife, Louise, and my son, Jovin—for their endless love and care.
—Iwan Setiawan
About the Authors
Philip Kotler is Professor Emeritus of Marketing at the Kellogg School of Management, where he held the S.C. Johnson & Son Professorship of International Marketing. The Wall Street Journal ranks him as one of the top six most influential business thinkers. The recipient of numerous awards and honorary degrees from schools worldwide, he holds an MA from the University of Chicago and a PhD from Massachusetts Institute of Technology, both in economics. Philip has an incredible international presence—his books have been translated into more than 25 languages and he regularly speaks on the international circuit.
Hermawan Kartajaya is the founder and Executive Chairman 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. Hermawan is also a recipient of the Distinguished Global Leadership Award from the Pan-Pacific Business Association at the University of Nebraska–Lincoln. He is also Chairman of the Asia Council for Small Business and a co-founder of the Asia Marketing Federation.
Iwan Setiawan is Chief Executive Officer of MarkPlus, Inc., where he helps businesses design their corporate and marketing strategies. A frequent writer and speaker, Iwan is also Editor-in-Chief of Marketeers. Iwan holds an MBA from the Kellogg School of Management at Northwestern University and a BEng from the University of Indonesia.
Acknowledgments
The authors would like to thank the leadership team at MarkPlus, Inc., who spent countless hours brainstorming with the authors: Michael Hermawan, Jacky Mussry, Taufik, Vivie Jericho, Ence, Estania Rimadini, Yosanova Savitry, and Edwin Hardi.
A very special thank-you to Richard Narramore at Wiley for his vision and continuous commitment to the Marketing X.0 series. Without Richard, the books would not be possible. We would also like to thank the editorial team at Wiley—Deborah Schindlar, Victoria Anllo, Linda Brandon—for a great collaboration during the development of Marketing 5.0.
PART IIntroduction
CHAPTER 1Welcome to Marketing 5.0: Technology for Humanity
We wrote our first book in the series, Marketing 3.0: From Products to Customers to the Human Spirit, in 2009. The book has since been published in 27 language editions around the world. As the subtitle suggests, the book describes the major shifts from product-driven marketing (1.0) to customer-oriented marketing (2.0) to human-centric marketing (3.0).
In Marketing 3.0, customers look for not only functional and emotional satisfaction but also spiritual fulfillment from the brands they choose. Thus, companies build differentiation with their values. Their products and operations aim not only to bring profits but also to provide solutions to the world's toughest social and environmental problems.
It took nearly 70 years for marketing to evolve from its product orientation to the concept of human centricity. During the decades of evolution, several marketing concepts have stood the test of time. Despite being “traditional” in nature, the segmentation-targeting-positioning concept as well as the product-price-place-promotion (4Ps) model have become universal staples for modern marketers globally.
We have always considered Marketing 3.0 to be the ultimate stage of traditional marketing. The entire building blocks of serving customers intellectually (1.0), emotionally (2.0), and spiritually (3.0) were complete. Although published a decade ago, the book's relevance has become more evident in today's era dominated by Generation Y and Generation Z populations. Genuinely caring for the society, the youth essentially forced companies to adopt social impact in the business model.
Marketing 4.0: The Pivot to Digital
When we wrote the next book in the series, Marketing 4.0: Moving from Traditional to Digital, in 2016, we pivoted to “digital” as the subtitle implies. In the book, we differentiated “marketing in the digital world” from digital marketing. Marketing in the digital world does not rely solely on digital media and channels. The digital divide still exists; thus, marketing requires an omnichannel—online as well as offline—approach. The concept is partly inspired by Industry 4.0—a high-level strategy of the German government—in which physical-digital systems are used in manufacturing sectors.
Although the use of technologies in Marketing 4.0 is fairly basic, the book introduced new marketing frameworks to serve customers in the hybrid—physical and digital—touchpoints across their customer journeys. It has thus far been published in 24 language editions worldwide and inspired companies to adopt fundamental forms of digitalization in their marketing activities.
The applications of marketing technology (martech), however, are so much more than just distributing content in social media or building an omnichannel presence. Artificial intelligence (AI), natural language processing (NLP), sensor technology, and the Internet of Things (IoT) have great potential to be game-changing for marketing practices.
We excluded these technologies in Marketing 4.0 as they were not yet mainstream at the time we wrote the book. And we believe marketers were still in the transitional and adaptation period to a digital world. But the COVID-19 pandemic has indeed accelerated the digitalization of businesses. With lockdowns and physical distancing policies in place, both the markets and marketers were forced to adapt to the new touchless and digital realities.
That is why we think this is the right time for Marketing 5.0: Technology for Humanity. It is time for companies to unleash the full power of advanced technologies in their marketing strategies, tactics, and operations. This book is also partly inspired by Society 5.0—a high-level initiative of Japan—which contains a roadmap to create a sustainable society supported by smart technologies. We agree that technology should be leveraged for the good of humanity. Marketing 5.0, therefore, has the elements of both the human-centricity of Marketing 3.0 and the technology-empowerment of Marketing 4.0.
It's Time for Marketing 5.0
Marketing 5.0 materializes against the backdrop of three major challenges: generation gap, prosperity polarization, and the digital divide. It is the first time in history that five generations living together on Earth have contrasting attitudes, preferences, and behaviors. The Baby Boomers and Generation X still hold most of the leadership positions in businesses and the highest relative buying power. But the digital-savvy Generations Y and Z now form the largest workforce as well as the biggest consumer markets. The disconnect between the older corporate executives who make most decisions and their younger managers and customers will prove to be a significant stumbling block.
Marketers will also face chronic inequality and imbalanced wealth distribution, which causes the markets to polarize. The upper class with high-paying jobs is growing and fueling the luxury markets. At the other end, the bottom of the pyramid is also expanding and becomes a large mass market for low-priced, value products. The middle market, however, is contracting and even vanishing, forcing industry players to move up or down to survive.
Moreover, marketers must solve the digital divide between people who believe in the potential that digitalization brings and those who do not. Digitalization brings fear of the unknown with the threats of job losses and concerns of privacy violations. On the other hand, it brings the promise of exponential growth and better living for humanity. Businesses must break the divide to ensure that technological advancement will move forward and not be welcomed with resentment. These challenges that marketers face in implementing Marketing 5.0 in the digital world will be the subject of Part 2 of the book (Chapters ).
What Is Marketing 5.0?
Marketing 5.0, by definition, is the application of human-mimicking technologies to create, communicate, deliver, and enhance value across the customer journey. One of the critical themes in Marketing 5.0 is what we call the next tech, which is a group of technologies that aim to emulate the capabilities of human marketers. It includes AI, NLP, sensors, robotics, augmented reality (AR), virtual reality (VR), IoT, and blockchain. A combination of these technologies is the enabler of Marketing 5.0.
For many years, AI has been developed to replicate human cognitive abilities, especially to learn from unstructured customer data and discover insights that might be beneficial for marketers. When mixed with other enabling technologies, AI can also be utilized to provide the right offers to the right customers. Big data analytics enables marketers to personalize their marketing strategy to each customer—a process known as “segments of one” marketing. Today, such a practice is becoming more mainstream than ever.
Consider these examples of Marketing 5.0. With AI's machine learning, companies can envision if a new product with specific features is likely to succeed with the assistance of a predictive algorithm. Hence, marketers can skip many steps in the new product development process. In most cases, these predictions have better accuracy than backward-looking market research and produce insights faster than the time-consuming concept tests. PepsiCo, for instance, regularly launches beverage products based on in-depth analysis of customer conversations on social media.
AI can also help reveal shopping patterns useful for e-retailers to recommend the right products and content to a cluster of shoppers based on their profiles. The recommendation engines are the critical differentiation of e-commerce players and other digital businesses such as Amazon, Netflix, and YouTube. They continuously analyze past purchase histories to create a dynamic segmentation and profiling of the customers and find the hidden relationships between seemingly unrelated products to upsell and cross-sell.
Some companies across industries such as AB InDev, Chase, and Lexus leverage AI to develop advertising with minimum involvement of human personnel. AB InDev, the company behind Budweiser and Corona, monitors how various ad placements are performing and feeds the resulting insights to the creative team to generate more effective ads. Chase opted for an AI engine instead of a human copywriter to write ad copies for its digital banners. Lexus analyzed award-winning campaigns for the past 15 years, especially in the luxury markets, to create a television ad for the new ES sedan. With a script entirely written by AI, the company hired an Oscar-winning director to shoot the commercial.
The implementation of Marketing 5.0 is not just limited to back-office operations. Combined with NLP, sensors, and robotics, AI can assist marketers in performing customer-facing activities. One of the most popular applications is for customer service chatbots. Facing human resources challenges such as an aging society and rising costs, several companies also use robots or other automated means to replace frontline staff. Nestle in Japan, for instance, employs AI-empowered robots as coffee waiters. Hilton in the United States experiments with a robot concierge while Tesco in the UK aims to replace the cashiers with face-recognizing cameras.
With sensors and IoT, retailers can replicate the digital experience in the brick-and-mortar space. A face-detecting screen in a retail store, for instance, can estimate a shopper's demographic and offer the right promotions. Walgreens’ digital coolers are an example of this. Augmented reality apps, such as the ones Sephora or IKEA use, allow shoppers to try on products before committing to buying them. Macy's and Target apply sensor technologies for in-store wayfinding as well as targeted promotion.
Some of these applied technologies might sound far-fetched and even intimidating for marketers. But we are beginning to see how affordable and accessible these technologies have become in recent years. An open-source artificial intelligence platform from Google and Microsoft is readily available for businesses. There are plenty of choices for cloud-based data analytics, accessible via monthly subscriptions. Marketers can also choose from a wide variety of user-friendly chatbot-builder platforms that even nontechnology persons can use.
We explore Marketing 5.0 from a high-level strategic perspective. We will cover the know-how of using advanced martech to a certain extent, but this is not a technical book. Our principle is that technology should follow strategy. The concepts in Marketing 5.0 are, thus, tools-agnostic. Companies can implement the methods with any supporting hardware and software available in the market. The key is that those companies must have marketers who understand how to design a strategy that applies the right technology for various marketing use cases.
Despite the in-depth discussion on technology, it is important to note that humanity should remain the central focus of Marketing 5.0. The next tech is applied to help marketers to create, communicate, deliver, and enhance value across the customer journey. The objective is to create a new customer experience (CX) that is frictionless and compelling (see Figure 1.1). In achieving it, companies must leverage a balanced symbiosis between human and computer intelligence.
AI has the capability of discovering previously unknown patterns of customer behavior from piles of data. Despite its computational power, however, only humans can understand other humans. Human marketers are required to filter and interpret underlying motives for customer actions (see Figure 1.2). The reason for this is because human intelligence is highly contextual yet fuzzy. Nobody knows how seasoned marketers extract insights and develop wisdom. And technologists have not managed to build a machine that can make a human-level connection with customers.
FIGURE 1.1 The Next Tech Across the New Customer Experience (CX)
FIGURE 1.2 How Humans Add Value to Tech-Driven Marketing
Since we cannot teach computers the things we do not know how to learn, the role of human marketers is still critical in Marketing 5.0. The central discussion in Marketing 5.0, hence, is around selecting where machines and people might fit and deliver the most value across the customer journey.
Part 3 of this book will discuss this in detail and is useful to give the right foundations for marketers before delving into the tactical applications. Chapter 5 helps companies assess their readiness for the use of advanced digital tools. Moreover, Chapter 6 will help marketers familiarize themselves with the next tech as the chapter contains a primer on the subject. Finally, Chapter 7 discusses a complete list of use cases that are proven across the new CX.
How Technology Can Enhance Marketing
The rise of social media marketing and search engine marketing as well as the exponential growth of e-commerce have introduced marketers to the benefits of digitalization. But marketing in the digital context is not much more than migrating customers to digital channels or spending more on digital media. Digital technology can revolutionize how marketers ply their trade. There are five ways technology can boost marketing practices:
Make more informed decisions based on big data.
The greatest side product of digitalization is big data. In the digital context, every customer touchpoint—transaction, call center inquiry, and email exchange—is recorded. Moreover, customers leave footprints every time they browse the Internet and post something on social media. Privacy concerns aside, those are mountains of insights to extract. With such a rich source of information, marketers can now profile the customers at a granular and individual level, allowing one-to-one marketing at scale.
Predict outcomes of marketing strategies and tactics.
No marketing investment is a sure bet. But the idea of calculating the return on every marketing action makes marketing more accountable. With artificial intelligence–powered analytics, it is now possible for marketers to predict the outcome before launching new products or releasing new campaigns. The predictive model aims to discover patterns from previous marketing endeavors and understand what works, and based on the learning, recommend the optimized design for future campaigns. It allows marketers to stay ahead of the curve without jeopardizing the brands from possible failures.
Bring the contextual digital experience to the physical world.
The tracking of Internet users enables digital marketers to provide highly contextual experiences, such as personalized landing pages, relevant ads, and custom-made content. It gives digital-native companies a significant advantage over their brick-and-mortar counterparts. Today, the connected devices and sensors—the Internet of Things—empowers businesses to bring contextual touchpoints to the physical space, leveling the playing field while facilitating seamless omnichannel experience. Sensors enable marketers to identify who is coming to the stores and provide personalized treatment.
Augment frontline marketers’ capacity to deliver value.
Instead of being drawn into the machine-versus-human debate, marketers can focus on building an optimized symbiosis between themselves and digital technologies. AI, along with NLP, can improve the productivity of customer-facing operations by taking over lower-value tasks and empowering frontline personnel to tailor their approach. Chatbots can handle simple, high-volume conversations with an instant response. AR and VR help companies deliver engaging products with minimum human involvement. Thus, frontline marketers can concentrate on delivering highly coveted social interactions only when they need to.
Speed up marketing execution.
The preferences of always-on customers constantly change, putting pressure on businesses to profit from a shorter window of opportunity. To cope with such a challenge, companies can draw inspiration from the agile practices of lean startups. These startups rely heavily on technology to perform rapid market experiments and real-time validation. Instead of creating products or campaigns from the ground up, businesses can build on open-source platforms and leverage co-creation to accelerate go-to-market. This approach, however, requires not only the backing of technology but also the right agile attitude and mindset.
Five Components of Marketing 5.0
In essence, technology will enable marketing to be data-driven, predictive, contextual, augmented, and agile. Based on the ways advanced technology adds value to marketing, we define the five fundamental components of Marketing 5.0. Marketing 5.0 centers around three interrelated applications: predictive marketing, contextual marketing, and augmented marketing. But those applications are built on two organizational disciplines: data-driven marketing and agile marketing (see Figure 1.3). Part 4 is dedicated to exploring these five elements of Marketing 5.0.
Discipline 1: Data-Driven Marketing
Data-driven marketing is the activity of collecting and analyzing big data from various internal and external sources as well as building a data ecosystem to drive and optimize marketing decisions. This is the first discipline of Marketing 5.0: every single decision must be made with sufficient data at hand.
FIGURE 1.3 The Five Elements of Marketing 5.0
Discipline 2: Agile Marketing
Agile marketing is the use of decentralized, cross-functional teams to conceptualize, design, develop, and validate products and marketing campaigns rapidly. The organizational agility to deal with the ever-changing market becomes the second discipline that companies must master to ensure successful Marketing 5.0 implementation.
The two disciplines will sandwich the other chapters in Part 4. Data-driven marketing will be discussed in Chapter 8 while agile marketing will be explored in the concluding Chapter 12. We believe that for companies to run the three applications of Marketing 5.0, they must start with building data-driven capability. In the end, what will truly make or break the implementation is the organization's agility in the execution.
Application 1: Predictive Marketing
Predictive marketing is the process of building and using predictive analytics, sometimes with machine learning, to predict the results of marketing activities before launch. This first application allows businesses to envision how the market will respond and proactively influence it. The concept will be reviewed in Chapter 9.
Application 2: Contextual Marketing
Contextual marketing is the activity of identifying and profiling as well as providing customers with personalized interactions by utilizing sensors and digital interfaces in the physical space. It is the backbone that allows marketers to perform one-to-one marketing in real-time, depending on the customer context. The concept will be explored in detail in Chapter 10.
Application 3: Augmented Marketing
Augmented marketing is the use of digital technology to improve the productivity of customer-facing marketers with human-mimicking technologies such as chatbots and virtual assistants. This third application ensures that marketers combine the speed and convenience of digital interface with the warmth and empathy of people-centric touchpoints. The concept will be discussed at length in Chapter 11.
The three applications are interconnected and hence are not mutually exclusive. Consider this example. Company X builds a predictive marketing model that forecasts what product a customer with a specific demographic will likely buy. For this model to work, the company must set up various sensors at the point of sales, which include a face recognition camera attached to a digital self-service kiosk. When a customer with the right demographic approaches the kiosk, the camera picks up a trigger and sends a signal to the screen to display a contextual ad offering the product recommended by the predictive model. The customer can also use the digital interface in a personalized manner. But at the same time, Company X also provides a frontline staff, augmented with digital tools containing the predictive model, with the ability to help the customer when the self-service option is not satisfactory.
Summary: Technology for Humanity
Marketing 5.0 is built upon the human-centricity of Marketing 3.0 and the technological prowess of Marketing 4.0. It is defined as the use of human-mimicking technologies to create, communicate, deliver, and enhance value in the overall customer experience. It starts by mapping the customer journey and identifying where marketing technologies (martech) can add value and improve the performance of human marketers.
Companies applying Marketing 5.0 must be data-driven from the get-go. Building a data ecosystem is the prerequisite to implementing the use cases of Marketing 5.0. It allows marketers to execute predictive marketing to estimate the potential return of every marketing investment. It also enables marketers to deliver personalized, contextual marketing to every individual customer at the point of sale. Finally, frontline marketers can design a seamless interface with the customers using augmented marketing. All these execution elements require corporate agility to provide a real-time response to market changes.
REFLECTION QUESTIONS
Has the implementation of digital technologies in your organization gone beyond social media marketing and e-commerce?
What are some of the advanced technologies that you envision will bring value to your organization?
