Marketing 4.0: Moving from Traditional to Digital

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

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.