Marketing 4.0 pdf free download

Ubud, with its aura of spirituality, is indeed the perfect place for the first marketing museum of its kind. In the museum, we have been curating inspiring cases of marketers, companies, and marketing campaigns that embrace the human spirit. The contents are organized in a modern multiscreen setup.

In recent years, the museum has been upgraded with advanced technologies such as augmented reality and virtual reality. Indeed, a lot has happened since we wrote Marketing 3. The technologies we are seeing today are not new.

But they have been converging in recent years, and the collective impact of that convergence has greatly affected marketing practices around the world. We believe that the technology convergence will ultimately lead to the convergence between digital marketing and traditional marketing. In a high-tech world, people long for high touch. The more social we are, the more we want things that are made just for us.

Backed by big-data analytics, products become more personalized and services become more personal. In the digital economy, the key is to leverage these paradoxes. In this transitional era, a new marketing approach is required. Thus, we introduce Marketing 4.

The major premise of this book is that marketing should adapt to the changing nature of customer paths in the digital economy. The role of marketers is to guide customers throughout their journey from awareness and ultimately to advocacy. The first part of the book is the result of our observation of the world we are living in. Description: It is a medium sized book for any moderate reader. It fairly focuses on different modules of Digital Marketing.

Hence, the learner can go for it and learn Digital Marketing Fundamentals as well as generating Marketing Strategies for businesses. Description: It is a very small sized book. You can read it while traveling, or in a waiting room. A quick glance could be given before any presentation for reference. Description: It is also a small booklet. It is a PowerPoint document. The use of PPT tools is beautiful. The digital marketing strategies covered are quite good.

You can count on the book for a quick revision as well as it is a quick read for beginners if they want to start with Digital Marketing for their projects.

Create Build beautiful, highly functional assets and content for brands and campaigns. Engage Use the power of the connected web to drive the traffic to those assets and leverage the available channels. Optimize Relentlessly use data and analysis to improve all the marketing efforts.

Description: A very small book. Click here to sign up. Download Free PDF. Marketing 4. A short summary of this paper. Download Download PDF. Translate PDF. It's critical in such an environment to have a baseline and point of reference to help marketers find their way forward.

This book is the eye-opener for marketing in the new era. His ability to identify and interpret new marketing trends and developments is truly astounding. Once again, with Marketing 4. This is definitely the one marketing book you HAVE to read this year. The future of marketing is digital and this book is your guide. Perplexed marketers will learn how to navigate the power shifts and possibilities of digital connectivity and turn them into advantages.

Day, Geoffrey T. All rights reserved. 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 the author shall be liable for damages arising therefrom. For general information about our other products and services, please contact our Customer Care Department within the United States at , outside the United States at or fax Wiley publishes in a variety of print and electronic formats and by print-on-demand.

Some material included with standard print versions of this book may not be included in e-books or in print-on- demand. For more information about Wiley products, visit www. Kartajaya, Hermawan, author. Setiawan, Iwan, author. Title: Marketing 4. Internet marketing. K DDC Over this period, a number of people have contributed to the completion of the book.

We would also like to thank the leaders at MarkPlus, Inc. Last but not least, we would like to thank the team at Wiley—Richard Narramore, Tiffany Colon, and Jocelyn Kwiatkowski—who made it possible for us to share Marketing 3.

Considering the dynamics of marketing, many would expect Marketing 4. In Marketing 3. Therefore, we argued that the future of marketing lies in creating products, services, and company cultures that embrace and reflect human values. Since the book was published in , many marketers have been adopting the principles of Marketing 3.

The book was so universally accepted that it has been translated into 24 languages besides English globally. A year after the book was published, we built the Museum of Marketing 3. Ubud, with its aura of spirituality, is indeed the perfect place for the first marketing museum of its kind.

In the museum, we have been curating inspiring cases of marketers, companies, and marketing campaigns that embrace the human spirit. The contents are organized in a modern multiscreen setup. In recent years, the museum has been upgraded with advanced technologies such as augmented reality and virtual reality. Indeed, a lot has happened since we wrote Marketing 3. The technologies we are seeing today are not new.

But they have been converging in recent years, and the collective impact of that convergence has greatly affected marketing practices around the world. In a high- tech world, people long for high touch.

The more social we are, the more we want things that are made just for us. Backed by big-data analytics, products become more personalized and services become more personal. In the digital economy, the key is to leverage these paradoxes.

In this transitional era, a new marketing approach is required. Thus, we introduce Marketing 4. The major premise of this book is that marketing should adapt to the changing nature of customer paths in the digital economy. The role of marketers is to guide customers throughout their journey from awareness and ultimately to advocacy. The first part of the book is the result of our observation of the world we are living in.

We start by embracing the three power shifts that are shaping our world. We move further by exploring how connectivity has fundamentally changed human lives. Moreover, we take a deeper look into the major digital subcultures of youth, women, and netizens that will serve as foundations for a completely new breed of customer. The second and core part 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 our marketing practices. We will also dive deep into several key industries and learn how to implement the ideas of Marketing 4. Finally, the third part describes in detail the major tactics of Marketing 4. We start with human-centric marketing, which aims to humanize brands with humanlike attributes. We then explore content marketing in greater detail in order to create customer conversations.

Moreover, we also describe how marketers can implement omnichannel marketing for higher sales. Finally, we dig into the concept of customer engagement in the digital era. In essence, Marketing 4. We are hopeful that you will find insights and inspirations from this book and join us in redefining marketing in the years to come.

He is ranked by the Wall Street Journal as one of the top six most influential business thinkers. Philip has an incredible international presence—his books have been translated into approximately 25 languages, and he regularly speaks on the international circuit.

A frequent writer and speaker, Iwan is also the Editor-in-Chief of Marketeers www. A couple of geologists in found that Frost's belief might be true. They discovered that the earth's core was about to explode and bring catastrophe to the world.

And so the world's leaders gathered to find a solution and decided to build giant ships resembling Noah's Ark to save select groups of the world's population. The survivors on the ships would be expected to start a new civilization. This story is completely fictional and is taken from the movie But many of the scenes in the movie symbolize the change we are experiencing today.

The movie shows how the old standards of civilization—political, economic, socio-cultural, and religious standards—were being destroyed and being replaced by a more horizontal and inclusive set of social standards. It shows how leaders of the Western superpower countries were forced to drop their egos and collaborate.

They even had to rely on China to build the giant ships. The ships also functioned as the symbols of a new world in which diverse people were connected with one another without any geographical and demographical boundaries. Today, we are living in a whole new world. The power structure we have come to know is experiencing drastic changes. The internet, which brought connectivity and transparency to our lives, has been largely responsible for these power shifts.

We witness how exclusive powers surrender to the power of inclusivity. The G7, which is an exclusive group of powerful nations, could not solve the global financial crisis by themselves. They had to involve the G20 nations, which include China, India, and Indonesia. The economic power is now more inclusively dispersed. Large corporations also found it difficult to nurture innovation within their exclusive organizations.

Even millionaires Bill Gates and Mark Zuckerberg were aware of the need for economic inclusivity. They donated their wealth to help the poor through the Bill and Melinda Gates Foundation and the Startup:Education now part of the Chan Zuckerberg Initiative organizations, respectively. We are also seeing how a vertical power structure has been diluted by a more horizontal force. We also see how people now go to Twitter for breaking news from citizen journalists whereas in the past, a large TV network like CNN would be the go-to channel.

Even YouTube has taken Hollywood by storm. A survey commissioned by Variety magazine revealed that for to year-olds, YouTube celebrities are more popular than Hollywood stars. The entertainment giant Sony collaborated with YouTube to show that horizontal forces could not be hindered by vertical ones. Sony's North Korea— themed comedy movie The Interview was commercially released first via YouTube in response to an alleged cyberattack from North Korea.

The power shift also influences people. Now, the power lies not with individuals but with social groups. Dictators were overthrown by people led by unknown leaders. Wall Street financiers were shaken by the Occupy Wall Street protest movement. Ebola fighters were chosen as Time magazine's Person of the Year rather than U. These shifts have radically changed our world. In a world where the horizontal, inclusive, and social forces trump the vertical, exclusive, and individual forces, customer communities have become ever more powerful.

They are now more vocal. They are not afraid of big companies and big brands. They love to share stories, good and bad, about brands. Random conversations about brands are now more credible than targeted advertising campaigns.

Social circles have become the main source of influence, overtaking external marketing communications and even personal preference. Customers tend to follow the lead of their peers when deciding which brand to choose. From Exclusive to Inclusive Gone are the days when being exclusive was the goal. Inclusivity has become the new name of the game. At the macro level, the world is moving from a hegemony to a multilateral power structure. The superpowers, mainly the European Union and the United States, realize that some economic powers are shifting to the rest of the world, most notably to Asia, which has experienced steady growth in recent years.

It is important to note that the Western superpowers will still be powerful; it's just that other nations are gaining more power over time. Economic powers are no longer concentrated but are more evenly distributed.

This economic shift is often attributed to the demographic profile of the emerging market populations: younger, more productive, and growing in terms of income level. It has created strong demand for products and services, which in turn drives economic growth. Recent data, however, suggest that the reason might not just be demographic. From the innovation perspective, emerging markets are also heading in a better direction.

Recent data collected by Robert Litan suggests that innovation in the United States has been declining.

The number of start-ups accounted for only 8 percent of total companies in the country, whereas 30 years ago, it was nearly 15 percent. In Litan's data, the number of bankruptcies exceeded the number of start-ups. The trajectory for Asia is quite the opposite. According to the Organization for Economic Cooperation and Development, China will overtake the European Union and the United States in innovation-related spending by In , South Korea became the most advanced country for innovation, spending over 4 percent of its GDP on research and development.

The political influence of the Western world is also declining, following the drop in its economic influence. Military powers that used to provide effective influence are slowly being replaced by the soft approach of economic support and diplomacy. China, for example, maintains a strong influence in Africa due to its support for developing better governance and a more sustainable development. Business itself is moving toward inclusivity.

This also works the other way around. With reverse innovation, new products can be developed and introduced in the emerging markets before being sold elsewhere.

The frugality and cost-consciousness shown in developing products are becoming the new sources of differentiation. A well-known example of this is GE's Mac , a portable battery-operated electrocardiogram machine, which was designed to serve rural villagers in India. It was marketed elsewhere with portability as its core differentiation.

The transparency brought by the internet also enables entrepreneurs from emerging countries to draw inspiration from their counterparts in developed countries. They are building clone businesses marked by local twists in the execution. There are, for example, Amazon-inspired Flipkart. Customers in these countries experience the services without having to wait for American companies to establish their footprints there.

The walls between industries are also blurring. The convergence and integration of two or more industries are trending. Industries have the choice to either compete or synergize to reach the same customers. In most cases, they synergize. Many medical centers are now integrated with tourism facilities so that the costs of health care and holiday can be optimized.

United Kingdom—based Patients Beyond Borders estimated serving around 11 million medical tourists in Popular medical treatments and destinations include dental work in Costa Rica, heart operations in Malaysia, and cosmetic surgery in Brazil. In some emerging markets where prepaid cellular phone usage is immense, the telecommunications sector is collaborating with financial services to provide payment channels for goods and services.

Within an established industry, the sub-sectors will also be difficult to distinguish. In the financial-services industry, the lines that now separate banking, financing, insurance, fund management, and other industry sub- sectors will fade away, making it imperative for financial institutions to find new ways to differentiate themselves.

Vertical integration in one industry will create business entities that engage in comprehensive roles from material supply to production to distribution, making it difficult to define in which business a company is active. At a more micro level, humans are embracing social inclusivity. Being inclusive is not about being similar; it is about living harmoniously despite differences. In the online world, social media has redefined the way people interact with one another, enabling people to build relationships without geographic and demographic barriers.

The impact of social media does not stop there. It also facilitates global collaborations in innovation. Consider Wikipedia, which was built by a countless number of people, or InnoCentive, which broadcasts research and development challenges and asks for the best solutions.

In fact, all social media that take a crowd-sourcing approach are good examples of social inclusivity. Social media drives social inclusivity and gives people the sense of belonging to their communities. Social inclusivity is happening not only online but offline as well. The concept of inclusive cities—cities that welcome the diversity of their inhabitants—are often dubbed as a good model for sustainable cities.

Similar to the concept of social media, the concept of inclusive cities argues that when cities welcome minorities who are often left behind and give them a sense of acceptance, that will only benefit the cities.

Social inclusivity can also appear in the form of fair trade, employment diversity, and empowerment of women. These practices embrace human differences across gender, race, and economic status. The competitiveness of companies will no longer be determined by their size, country of origin, or past advantage.

Smaller, younger, and locally based companies will have a chance to compete against bigger, older, and global companies. Eventually, there will be no company that overly dominates the others. Instead, a company can be more competitive if it can connect with communities of customers and partners for co-creation and with competitors for co-opetition.

The flow of innovation that was once vertical from companies to the market has become horizontal. In the past, companies believed that innovation should come from within; thus, they built a strong research and development infrastructure. Eventually, they realized that the rate of internal innovation was never fast enough for them to be competitive in the ever-changing market.

It later transformed its research- and-develop model into a connect-and-develop model. Its rival Unilever has been moving in the same direction by capitalizing on its vast external innovation ecosystem.

Today, innovation is horizontal; the market supplies the ideas, and companies commercialize the ideas. Similarly, the concept of competition is changing from vertical to horizontal. Technology is the main cause. Chris Anderson's long tail hypothesis could not be truer today. The market is shifting away from high-volume mainstream brands into low-volume niche ones.

With the internet, physical logistical constraints no longer exist for smaller companies and brands. This inclusivity now enables companies to enter industries that they would not otherwise have entered in the past. This provides opportunities for companies to grow but poses significant competitive threats.

Because distinctions between industries are blurring, it will be highly challenging for companies to keep track of their competitors. Competitors in the future will come from the same industry as well as from other relevant and connected industries. To spot latent competitors, companies should start with the customers' objectives and consider potential alternatives that customers might accept to achieve their objectives.

Companies should also track competitors from outside their home markets. These competitors are not necessarily multinational corporations.

In recent years, we have observed the rise of great companies from emerging markets such as Xiaomi and Oppo. These companies innovate out of necessity and were created in challenging home markets. They match the quality of major brands but with significantly lower prices. This is made possible by the online go-to-market option. Highly innovative and resilient, these companies have all the necessary ingredients to expand their markets globally. The concept of customer trust is no longer vertical; it is now horizontal.

Customers in the past were easily influenced by marketing campaigns. They also sought for and listened to authority and expertise. But recent research across industries show that most customers believe more in the f-factor friends, families, Facebook fans, Twitter followers than in marketing communications.

Most ask strangers on social media for advice and trust them more than they do advertising and expert opinions. In recent years, the trend has spurred the growth of communal rating systems such as TripAdvisor and Yelp. In such a context, a brand should no longer view customers as mere targets. In the past, it was common for companies to broadcast their message through various advertisement media. Some companies even invented a not-so- authentic differentiation to be able to stand out from the crowd and support their brand image.

Consequently, the brand is often treated as outer-shell packaging, which allows for a fake representation of its true value. This approach will no longer be effective because with the help of their communities, customers guard themselves against bad brands that target them. A relationship between brands and customers should no longer be vertical but instead it should be horizontal.

Customers should be considered peers and friends of the brand. The brand should reveal its authentic character and be honest of its true value. Only then will the brand be trustworthy.

From Individual to Social When making purchase decisions, customers have typically been driven by individual preference as well as by a desire for social conformity. The level of importance for each of these two factors varies from one person to another.

It also varies across industries and categories. Given the connectivity we live in today, the weight of social conformity is increasing across the board. Customers care more and more about the opinions of others. They also share their opinions and compile massive pools of reviews. Together, customers paint their own picture of companies and brands, which is often very different from the image that companies and brands intend to project.

The internet, especially social media, has facilitated this major shift by providing the platform and tools. This trend will continue. Virtually everyone on earth will be connected very soon. It turns out that the solution for the internet laggards was not cheap laptops but rather cheap smartphones. In fact, it is projected by the UMTS Forum that mobile data traffic will jump by a factor of 33 from to With such vast connectivity, market behavior will become significantly different.

For example, in many countries in-store research using mobile phones to compare prices and check reviews is trending. Mobile connectivity allows customers to access the wisdom of the crowd and to make better purchase decisions. In such an environment, customers conform more to social opinions. In fact, most personal purchase decisions will essentially be social decisions.

Customers communicate with one another and converse about brands and companies. From a marketing communications point of view, customers are no longer passive targets but are becoming active media of communications. A beauty products brand—Sephora —has been exploring communities as a new form of media assets. Sephora has built a social media community in which all community-generated content is incorporated into the Beauty Talk platform.

It has become a trusted medium for customers who are trying to consult with other members of the community. Embracing this trend is not easy. With community-generated content, companies have no control over the conversation. Censoring content will weaken credibility. They must also be prepared for massive social backlash when something goes wrong. That being said, companies and brands that have strong reputations and honest claims about their products should have nothing to worry about.

But those who make false claims and have poor products will not survive. It is practically impossible to hide flaws or isolate customer complaints in a transparent, digital world.

Summary: Horizontal, Inclusive, and Social Marketers need to embrace the shift to a more horizontal, inclusive, and social business landscape. The market is becoming more inclusive. Social media eliminate geographic and demographic barriers, enabling people to connect and communicate and companies to innovate through collaboration. Customers are becoming more horizontally oriented. They are becoming increasingly wary of marketing communications from brands and are relying instead on the f-factor friends, families, fans, and followers.

Finally, the customer buying process is becoming more social than it has been previously. Customers are paying more attention to their social circle in making decisions. They seek advice and reviews, both online and offline.

Reflection Questions What are the trends in your respective industry that demonstrate the shifts toward a more horizontal, inclusive, and social business landscape?

What are your plans to embrace these shifts in the marketplace? Offline Interaction, Informed vs. Distracted Customer, and Negative vs. Positive Advocacy We have always believed that the word marketing should be written as market-ing. Writing it that way reminds us that marketing is about dealing with the ever-changing market, and that to understand cutting-edge marketing, we should understand how the market has been evolving in recent years.

The clues and trends are there for us to see. A new breed of customer, the one that will be the majority in the near future, is emerging globally—young, urban, middle-class with strong mobility and connectivity.

While the mature markets are dealing with an aging population, the emerging market is enjoying the demographic dividend of a younger, more productive population.

They are not only young, they are also rapidly migrating to urban areas and embracing a big-city lifestyle. The majority of them are in the middle class or above and thus have a sizable income to spend. Moving up from a lower socio-economic status, they aspire to accomplish greater goals, experience finer things, and emulate behaviors of people in higher classes. These traits make them a compelling market for marketers to pursue. But what distinguishes this new type of customer from other markets we have seen before is their tendency to be mobile.

They move around a lot, often commute, and live life at a faster pace. Everything should be instant and time-efficient. When they are interested in things they see on television, they search for them on their mobile devices. When they are deciding whether to buy something in-store, they research price and quality online.

Being digital natives, they can make purchase decisions anywhere and anytime, involving a wide range of devices. Despite their internet savvy, they love to experience things physically. They value high-touch engagement when interacting with brands. In fact, they trust their network of friends and family more than they trust corporations and brands. In short, they are highly connected. Breaking the Myths of Connectivity Connectivity is arguably the most important game changer in the history of marketing.

Granted, it can no longer be considered a new buzzword, but it has been changing many facets of marketing and is not showing signs of slowing down. Connectivity has made us question many mainstream theories and major assumptions that we have learned about customer, product, and brand management. Connectivity significantly reduces the costs of interaction among companies, employees, channel partners, customers, and other relevant parties. This in turn lowers the barriers to entering new markets, enables concurrent product development, and shortens the time frame for brand building.

There have been various cases of how connectivity quickly disrupted long- established industries with seemingly high entry barriers. Amazon has disrupted the brick-and-mortar bookstores and later the publishing industry. Likewise, Netflix has disturbed the brick-and-mortar video rental stores and, along with the likes of Hulu, has shaken up the satellite and cable TV services.

In a similar fashion, Spotify and Apple Music have changed the way music distribution works. Connectivity also changes the way we see the competition and customers. Today, collaboration with the competitors and co-creation with customers are central.

Competition is no longer a zero-sum game. Customers are no longer the passive receivers of a company's segmentation, targeting, and positioning moves. Connectivity accelerates market dynamics to the point where it is virtually impossible for a company to stand alone and rely on internal resources to win. A company must face the reality that to win it must collaborate with external parties and even involve customer participation. Partner companies such as Kaz and Bissell launched Honeywell scented fans and odor-removing vacuum bag filters that carry the Febreze brand.

Seeing connectivity from a technological viewpoint alone would often be misleading. In the context of strategy, many marketers view connectivity simply as an enabling platform and infrastructure that support the overall direction. A bigger-picture view of connectivity allows marketers to avoid this trap.

A survey by Google reveals that 90 percent of our interactions with media are now facilitated by screens: smartphone, tablet, laptop, and television screens. Screens are becoming so important in our lives that we spend more than four hours of our leisure time daily to use multiple screens sequentially and simultaneously.

And behind these screen-based interactions, the internet has been the backbone. Global internet traffic has grown by a factor of 30 from to , connecting four out of ten people in the world. According to a Cisco forecast, we will see another ten-fold jump of global internet traffic by , powered by more than 11 billion connected mobile devices.

With such a massive reach, connectivity transforms the way customers behave. When shopping in-store, most customers would search for price comparison and product reviews. Google research shows that eight out of ten smartphone users in the United States do mobile research in-store.

Even when watching television advertising, more than half of the TV audience in Indonesia conducts mobile search. This is a trend affecting customers globally. Derivative products of the internet also enable transparency. Social media such as Twitter and Instagram enable customers to show and share their customer experience, which further inspires other customers from the same or a lower class to emulate and pursue a similar experience. Communal rating sites such as TripAdvisor and Yelp empower customers to make informed choices based on the wisdom of the crowd.

Thus, to fully embrace connectivity we need to view it holistically. While mobile connectivity—through mobile devices—is important, it is the most basic level of connectivity, in which the internet serves only as a communications infrastructure. In this stage, we are no longer concerned only about the width but also about the depth of the connectivity. The ultimate level is social connectivity, which is about the strength of connection in communities of customers.

Since connectivity is closely related to the youth segment, it is also often considered relevant only for the younger generation of customers. It is true that being digital natives, younger customers are the first to adopt connectivity, but they inspire their seniors to adopt connectivity as well. Moreover, as the world population ages over time, digital natives will become the majority and connectivity eventually will become the new normal.

The importance of connectivity will transcend technology and demographic segment. Connectivity changes the key foundation of marketing: the market itself. Paradox No. While online businesses have taken up a significant portion of the market in recent years, we do not believe that they will completely replace offline businesses. In fact, we believe that they need to coexist to deliver the best customer experience.

Here is why: in an increasingly high-tech world, high-touch interaction is becoming the new differentiation. Birchbox, an online-first beauty product retailer, opened its brick-and-mortar store to complement its existing e- commerce business. The retailer provides iPads to make personalized recommendations, mimicking its online personalization scheme. Zappos, an online shoe and clothing retailer, relies heavily on very personal call-center interactions as a winning formula.

Buying shoes online can be a daunting task for many customers, but a touch of personal consultation from the call-center agents reduces the psychological barrier.

When making transactions on ATMs in these centers, customers can video-chat with a personal teller for assistance. The service combines ATM convenience with a personalized human touch. On the other hand, a high-tech interface can also enhance a predominantly high-touch interaction, making it more compelling.

Macy's shopBeacon project is an example of this. With Apple's iBeacon transmitters installed in various locations within a Macy's store, customers will be alerted with highly targeted offerings throughout their journey in-store.

When walking past a certain department, customers might be reminded of their shopping list, receive discount notifications, and get gift recommendations through an iPhone app. As transaction data accumulate over time, the offerings will become more personalized to each shopper profile. Another example is John Lewis's sofa studio, which allows customers to select a sofa model from 3-D- printed miniatures.

By placing a miniature alongside a selection of fabric in front of a computer screen, customers can see what their sofa will look like on the screen. It gives a very playful customer experience when choosing sofa model and fabric.

As it turns out, the online and offline world will eventually coexist and converge. Technology touches both the online world and the offline physical space, making it possible for the ultimate online—offline convergence. Sensor technologies, such as near field communication NFC and location-based iBeacon, provide a far more compelling customer experience.

In the engine room, big-data analytics enables the personalization that new customers are longing for.