Marketing 4.0 in the digital economy: 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. Being “targets,” customers often feel intruded upon and annoyed by irrelevant messages aimed toward them. Many consider one-way messages from brands to be spam.

By having countless logo adaptations, MTV and Google remain solid yet flexible as brands

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. Similar to the mechanism on Facebook, customers will have the decision to either “confirm” or “ignore” the friend requests. 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 1980s, 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. The character is the brand’s raison d’être, its authentic reason for being. When the core of the brand remains true to its roots, the outer imagery can be flexible. Think of it this way: by having countless logo adaptations—Google calls them doodles—MTV and Google remain solid yet flexible as brands.

From selling the ‘four Ps’ to commercialising the ‘four Cs’

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, price, place, and promotion. 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. Dynamic pricing—setting flexible prices based on market demand and capacity utilization—is not new in some industries such as hospitality and airlines. 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 purchase 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.

The concept of channel is also changing. In the sharing economy, the most potent distribution concept is peer-to-peer distribution. Players such as Airbnb, Uber, Zipcar, and Lending Club are disrupting the hotel, taxi, auto rental, and banking industries, respectively. They provide customers easy access to the products and services not owned by them but by other customers. The rise of 3-D printing will spur this peer-to-peer distribution even more in the near future. Imagine customers wanting a product and in a matter of minutes receiving the product printed in front of them. In a connected world, customers demand access to products and services almost instantly, which can only be served with their peers in close proximity. This is the essence of communal activation.

With a connected marketing mix – the four C’s – companies have a high likelihood of surviving in the digital economy

The concept of promotion has also evolved in recent years. Traditionally, promotion has always been a one-sided affair, with companies sending messages to customers as audiences. Today, the proliferation of social media enables customers to respond to those messages. It also allows customers to converse about the messages with other customers. The rise of customer-rating systems such as TripAdvisor and Yelp provide a platform for customers to have conversations about and offer evaluations of brands they have interacted with.

With a connected marketing mix (the four C’s) companies have a high likelihood of surviving in the digital economy. However, the paradigm of selling needs to change as well. Traditionally, customers are passive objects of selling techniques. In a connected world, the idea is to have both sides actively obtain commercial value. With increased customer participation, companies are engaging customers in transparent commercialization.

From customer service processes to collaborative customer care

Prior to purchase, customers are treated as targets. Once they decide to buy, they are considered kings in a traditional customer-service perspective. Shifting to the customer-care approach, companies view customers as equals. Instead of serving customers, a company demonstrates its genuine concern for the customer by listening, responding, and consistently following through on terms dictated by both the company and the customer.

In traditional customer-service, personnel are responsible for performing specific roles and processes according to strict guidelines and standard operating procedures. This situation often puts service personnel in a dilemma over conflicting objectives. In a connected world, collaboration is the key to customer-care success. Collaboration happens when companies invite customers to participate in the process by using self-service facilities.

This is an edited extract from Marketing 4.0: Moving from Traditional to Digital, by Philip Kotler, Hermawan Kartajaya and Iwan Setiawan (Wiley, 2017)

Source: 08 March 2017, 13:01 p.m.

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WEEKEND READING: “MARKETING 4.0” BY PHILIP KOTLER

For the 100th episode of The Marketing Book Podcast I was thrilled to interview Dr. Philip Kotler, the man widely regarded at “The Father of Modern Marketing.”

A faculty member since 1962 of the Kellogg School of Management at Northwestern University, Dr. Kotler is the author of over 55 marketing books (translated into more than 25 languages), including “Marketing Management” (now in its 15th edition), “Principles of Marketing,” “Kotler on Marketing: How to Create, Win, and Dominate Markets,” and “Marketing 3.0: From Products to Customers to the Human Spirit.”

In this book, co-authored with Hermawan Kartajaya and Iwan Setiawan, “Marketing 4.0: Moving From Traditional to Digital” Dr. Kotler explains:

Marketing 4.0 is a marketing approach that combines online and offline interaction between companies and customers. In the digital economy, digital interaction alone is not sufficient. In fact, in an increasingly online world, offline touch represents a strong differentiation. Marketing 4.0 also blends style with substance. 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.

The book explains the three power shifts that are shaping our world (the shifts to a more horizontal, inclusive, and social business landscape) and explains how connectivity has fundamentally changed human lives and how connectivity is the most important game changer in the history of marketing.

The core of the book discusses how marketers can boost productivity by understanding customer paths in the digital era. It introduces a new set of marketing metrics and a whole new way of looking at marketing practices(goodbye AIDA, hello 5 A’s).

The book also covers the importance of content marketing (“Content Is the New Ad, #Hashtag Is the New Tagline.”) and why brand need to better embrace their humanity:

Marketers need to adapt to this new reality and create brands that behave like humans— approachable and likeable but also vulnerable. Brands should become less intimidating. They should become authentic and honest, admit their flaws, and stop trying to seem perfect.

Source: In Marketing Strategy

Na Amcham, Adobe, Sodexo, Porto Seguro, Netshoes e F.biz debatem efeitos do digital no Marketing (18/8)

Influenciados pelo mundo digital, os hábitos de consumo estão mudando e, com isso, redefinindo o relacionamento das empresas com seus clientes. Essa transformação digital do consumidor e, consequentemente do marketing, será tema do 3º Fórum de Marketing Amcham – A revolução do digital, que acontece na sexta-feira (18/8), das 8h30 às 12h.

No primeiro painel do encontro, empresas como Adobe, Sodexo e Porto Seguro Conecta compartilham experiências sobre a migração do marketing tradicional para o marketing digital. Os painelistas serão Tiago Galli, gerente-geral da Porto Seguro Conecta, Fernando Cosenza, diretor executivo de marketing estratégico, inovação e digital da Sodexo, e Gabriela Viana, diretora de marketing da Adobe para a América Latina. A moderação será de Marcos Henrique Bedendo, professor da ESPM.

Em seguida, Vicente Gomes, consultor e sócio da Corall Consultoria, aborda a influência do digital nas relações entre marcas e consumidores, e Miguel Genovese, diretor de criatividade & inovação da PwC, reforça a importância do uso de métricas para o marketing.

No segundo e último painel, empresas da economia criativa e startups debatem as práticas atuais de marketing e o que deve ser o marketing do futuro. Os participantes serão Gabriela Fujiki Platinetty, diretora de marketing da Netshoes, Rachel Horta, CEO da Hekima, Roberto Grosman, Co-CEO da agência F.biz, e Robson Harada, diretor de Enterprise Marketing Latam do Uber. Elber Mazaro, professor de marketing e tecnologia da FIA, fará a moderação do debate.

As inscrições podem ser feita no site ou e-mail inscricao@amchambrasil.com.br.

Fonte: André Inohara, Departamento de Comunicação | AMCHAM BRASIL

Inteligência Competitiva: Fórum Indústria 4.0 da Amcham – São Paulo, Canal das Empresas

Entrevistas com CEO da Amcham Brasil, Deborah Vieitas e com o diplomata, economista, Marcos Troyjo, da Columbia University (EUA), durante o Fórum Indústria 4.0: A era da manufatura avançada, da Amcham – São Paulo.

Para assistir clique aqui.

Inteligência Competitiva: Especialista reforça importância da impressão de embalagem no Congresso Internacional de Tecnologia Gráfica

O Congresso Internacional de Tecnologia Gráfica, promovido pela APS Feiras e ABTG (Associação Brasileira de Tecnologia Gráfica) no dia 24 de agosto, em São Paulo, vem para trazer aos participantes novas ideias e conceitos sobre gestão e inovação dentro das empresas de impressão. Um dos palestrantes é Sandro Cardoch, canadense que atua como diretor comercial para a América Latina da Smag Graphique.

Sandro destaca a evolução do mercado e elogia o formato proposto no Congresso da ABTG: “A tecnologia e as técnicas de impressão tiveram grandes melhorias nos últimos 10 anos, e avançaram tremendamente desde a invenção de Gutenberg. Um caminho como este é uma janela maravilhosa às companhias de equipamentos de impressão como nós, o que nos permite apresentar estas tecnologias em um congresso que tem configuração em que usuários podem interagir e fazer perguntas”.

Tema sempre em debate na indústria, a impressão digital será tratada por Sandro, que relata: “Benny Landa fez uma declaração visionária nos anos 90: “Tudo que pode se tornar digital irá se tornar digital, e impressão não é uma exceção”, e isto se provou profético. Desde o final dos anos 90 até a indústria multibilionária de hoje, a impressão digital tem experimentado um crescimento explosivo tanto em tecnologia por si só como no ambiente de impressão”.

O avanço do digital resulta em um quadro no qual o empresário precisa se adaptar às demandas de mercado: “A tendência de impressão na indústria gráfica está se movendo para tiragens menores por conta da personalização e customização dos produtos. A impressão digital dará a possibilidade para se tornar mais lucrativo nas pequenas e médias tiragens, e adicionar as vantagens do mundo digital como personalização, dados variáveis e oferecer diferentes qualidades de impressão”.

Inscrições podem ser feitas clicando aqui.

Inteligência competitiva como diferencial “definitivo” para os negócios!

A inteligência competitiva constitui a coleta ética e o uso da informação pública e publicada disponível sobre tendências, eventos e atores fora das fronteiras de empresa.

O mundo passa por um período de mudanças rápidas e avassaladoras, comandadas, principalmente, pela revolução digital e a integração de pessoas e negócios por meio da Internet e das redes sociais.

O poder maior, das organizações modernas e por consequência das nações de origem, proporcionado pelo TI, pelo acesso às informações e inovações em processos, produtos e serviços não reconhece a força econômica dos países ricos, e abre oportunidades a todos que decidem lançar mão dos novos instrumentos de desenvolvimento tecnológico, econômico e social.

As novas condições de igualdade têm feito com que os países desenvolvidos, apresentem taxas de crescimento inferiores àquelas de países em desenvolvimento e o poder econômico está rapidamente passando às mãos destes últimos.

A tecnologia está se sofisticando e ficando mais complexa, e dessa forma, criando profundos impactos nos processos transacionais dos negócios, em seu posicionamento e suas estratégias.

Como consequência, o ambiente de negócios no qual as empresas operam está se tornando cada vez mais complexo e mutante. As empresas sentem crescentes pressões competitivas forçando-as a responder rapidamente às novas condições de operação e de se obrigarem a inovar na maneira como operam.

Para continuar a leitura, clique aqui.

Inteligência Competitiva Tecnológica: “Profissões deixam de existir, mas surgem outras”, diz consultor

Empresários e sindicatos esperam ações do poder público para formar e requalificar nova mão de obra

Robôs na Volkswagen

Viabilidade. Com eficiência para competir globalmente, grupos podem manter operações Foto: Wether Santana

O efeito real sobre o impacto da robotização no número de empregos é incerto. Defensores do processo, visto como irreversível, afirmam que diversas profissões vão desaparecer, mas outras surgirão, a exemplo do que ocorreu nas revoluções industriais anteriores.

“Em países com maior índice de robotização, como Coreia, Cingapura, Japão e Alemanha, a taxa de desemprego é baixa”, diz o presidente da ABB no Brasil, Rafael Paniagua. De acordo com dados de 2015 e 2016, nesses países o desemprego varia de 2,2% a 6,1% da população economicamente ativa. O Brasil, apesar do baixo índice de robotização, registrou taxa de desemprego de 11,6% em 2016, decorrente em boa parte da crise econômica.

“Estamos vivendo o desemprego conjuntural, mas a reorganização do processo produtivo também terá impacto no desemprego estrutural”, afirma o secretário-geral do Sindicato dos Metalúrgicos do ABC, Aroaldo Oliveira da Silva. Ele reconhece, porém, que se o Brasil não acompanhar a transformação industrial muitas empresas podem levar a produção para outro local.

“Na Alemanha, onde nasceu a Indústria 4.0, sindicatos e governo buscam intensificar a qualificação dos trabalhadores; no Brasil ainda não vemos essa preocupação por parte do governo”, informa Silva.

Para Marcelo Cioffi, da PwC, é certo que o mercado de trabalho será impactado, mas ao longo dos anos haverá uma acomodação. “Novas tecnologias promovem mudanças no mundo todo e profissões deixam de existir, mas outras surgem.”

O Brasil levará um bom tempo até essa etapa. Para ele, uma onda consistente de robotização pressupõe altos investimentos e, no momento, a maioria das empresas não está preparada para essa mudança radical. “Além disso, embora alto, o custo da mão de obra brasileira ainda é menor do que em muitos países e, por isso, vários processos de automação devem ser postergados.”

José Rizzo, presidente da Associação Brasileira de Internet Industrial, defende uma mobilização entre empresas, governo e sociedade para qualificar as pessoas e facilitar o empreendedorismo. “É preciso repensar a forma de ensino e facilitar a criação de empresas de tecnologia”.

Para Rizzo, ainda que parte dos funcionários perca o emprego, a automação vai salvar as vagas de quem ficar. “As empresas hoje avaliam quão viável é manter a operação em um país; se não for, levam para outro e todas as vagas são perdidas.”

Novos postos

Na MAN, fabricante de caminhões da marca Volkswagen e onde o uso de robôs será quadruplicado, não haverá cortes. “Pode até haver contratação”, diz o presidente da empresa, Roberto Cortes.

Para ele, o novo processo produtivo e a nova linha de produtos ajudarão nas exportações, o que pode exigir mais mão de obra. A meta é ampliar de 15% para 30% a produção para o mercado externo.

Fonte: Cleide Silva, O Estado de S.Paulo, 14 Agosto 2017 | 05h00