Table of Contents Cover Title Page Copyright Dedication About the Authors Acknowledgments PART I: Introduction CHAPTER 1: Welcome to Marketing 5.0: 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 5.1 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.1 Digitalization Amid COVID-19 FIGURE 5.2 How COVID-19 Has Affected Different Customer Segments and Industr.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 5A'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.1 Developing Agile Marketing FIGURE 12.2 Agile Marketing Worksheet Example 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.
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Library of Congress Cataloging-in-Publication Data Names: Kotler, Philip, author. | Kartajaya, Hermawan, 1947- author. | Setiawan, Iwan, author.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. Classification: LCC HF5415 .8—dc23 LC record available at https://lccn.gov/2020046415 LC ebook record available at https://lccn.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. —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.
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.
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. PART I Introduction CHAPTER 1 Welcome 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, 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.
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.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.