In a new era where marketers are dealing with digital transformation of business and changing customer behavior, Philip Kotler, an honored supporter of the 4 P’s of Marketing of Product, Price, Place, and Promotion, explains how marketers can use technology to meet customer needs and make a difference in the world with co-authors Iwan Setiawan and Hermawan Kartajaya.
ps. While it is difficult to escape knowing Philip Kotler as a marketer, it is important to remember that other writers are also incredibly successful in the field and worth to be watched.
I’ve read the Marketing X.0 series by this trio and am now reading Marketing 5.0. I’d like to share with you some of the book’s highlights.
First and foremost, Marketing 5.0 gives marketers a way to combine the big changes in customer behavior over the past ten years with new technologies and change how businesses operate. Using the successful structure of the popular Marketing X.0 series as a model, the authors go into important modern marketing topics like agile marketing, AI, marketing automation, uber-personalized marketing, contextual technology, and more.
Marketing 5.0 is great for both traditional and digital marketers, as well as marketing and business students and teachers, because it gives practical ideas and unique points of view.
This 11-section holy book will be shared in parts. However, these are the three key concerns driving Marketing 5.0:
Why humans are still crucial to Marketing 5.0?
Marketing 5.0 components, as well as how to integrate them in the company you work for.
To win in industries with a lot of competition, you have to focus on the customer experience. (Is it new? Don’t think so.)
Part I: TIME FOR MARKETING 5.0
It’s time for companies to use advanced technologies in their marketing strategies, tactics, and operations. Marketing 5.0 combines the human-focused approach of Marketing 3.0 with the technology-driven nature of Marketing 4.0.
In Marketing 5.0, we use technology that imitates human behavior to create, communicate, deliver, and improve customer experiences. One of the key components in Marketing 5.0 is advanced technology, which refers to a range of technologies aimed at mimicking the skills of human marketers. It incorporates AI, NLP, sensors, robots, augmented reality (AR), virtual reality (VR), the Internet of Things (IoT), and blockchain. Marketing 5.0 is made up of a mix of several technologies.
If we had to write one red line about the book, it would be that Marketing 5.0 is the use of technologies that act like humans to build, connect, serve, and improve value along the customer journey.
Part II: This is the DANCE FLOOR with all generations on it
In the following pages of the book, the writers start by pointing out that for the first time in history, that the five generations living on Earth have different views, tastes, and ways of acting are in the game now. While in business, Baby Boomers and Generation X continue to occupy the majority of leadership roles and the greatest relative buying power, Generations Y and Z are now the greatest employee and consumer market. Yet, Generation Alpha has been taking over both the buying market and the job market. A significant barrier is the division between earlier business leaders, who make the majority of the choices, and their younger executives and consumers.
The book Marketing 5.0, which occurs against the background of three major challenges: the generation gap, socioeconomic segmentation, and the digital divide.
Part III: Humanity’s Golden Age of Prosperity
Yuval Noval Harari, a well-known writer and researcher, has also talked about the fact that people today have greater resources and wealth than ever before. Yet, we will have to deal with ongoing inequalities and an unequal distribution of wealth, which makes the markets more divided.
Although growing wealth and developing technology are beneficial to humanity, unequal distribution of this benefit has ended up resulting in polarization. The upper class is expanding and fuelling luxury markets, thanks to high-paying jobs. At the opposite end of the spectrum, the base of the pyramid is also growing, resulting in an enormous market for low-cost, and low-value products and services. The middle market, on the other hand, is shrinking or perhaps disappearing, requiring business players to go up or down to survive. Because up is the slower growing segment, the products and services available to lower segments are expanding. This is an increasing trend not only for Turkey, my home country, but also for the world as I understand it.
In addition, according to the authors, new technologies can be offered to upper-middle class segments with high business potential, and the increased level of welfare is only at the service of a certain sentence, which creates a polarization that goes beyond. For this reason, AI algorithms focus on machine learning of a selected segment, assuming it resembles the masses that make up most of it and shows the general pattern of the human brain.
This is not an inclusive technology-human penetration that covers all of humanity. In the long run, the increasingly sharp polarization seems to narrow the playing field for us as marketers. The future of digital marketingdepends on the development of new markets since Marketing 5.0 underlines the potential of technology to be used for the benefit of entire humanity.
In other words, the upper segment’s desire to have all increases one side of the scale and lowers the other. The shrinking middle class and the uneven division of income create two extremes: the very poor and the very wealthy.
The polarization of society leaves brands and businesses with just two sustainable positioning strategies.
As a result, it restricts companies’ access to certain markets. But most importantly, it limits growth opportunities, especially during the slowing economy and an increasing number of players. My own perception and concern is that businesses and policymakers are trying to get the most out of this market by shifting to low-value products and services, instead of regulating the inequality.
💭 What if this income inequality makes mediocrity the new standard? Then do you think we can use technology in the most beneficial way for humanity?
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