December 10, 2023

Philip Kotler on Digital Marketing




Marketing Management Revision Article Series





The Internet is having an impact today that is comparable to what the world felt when Gutenberg introduced the idea of printing.  The Internet, social media and new communication technologies are major game changers in marketing.  The company cannot promote its brand by having a monopoly on communications about its brands.  It is the consumers and their peer-to-peer talk that is shaping consumer images of brands and what to buy and how much to pay.  No Company can afford to deceive customers without being quickly exposed on the Internet.

New digital  technologies affect all of the 4Ps of marketing. The advent of 3D Printing will help entrepreneurs design new products cheaper and faster.  The development of software to do dynamic pricing will allow airlines to change the price of seats depending on the number of seats already sold. The development of new distribution channels such as online seller, Amazon and others,  and eBay are increasing the ease of transacting.  The development of social media technologies such as Facebook, Twitter and YouTube are changing marketing tools for promotion.

Traditional advertising will contribute to be a brand builder but it will have to do it with a lower budget.  Some percentage of every company's advertising budget will have to move into digital and social media marketing.  It may conceivably in five or more years rise to 50 percent.  Traditional advertising will increasingly partner with digital marketing, one supporting the other in a synergistic way.

Company Moves to use Digital Marketing Opportunity

1. Companies will increasingly resort to crowdsourcing to get ideas for new products, new advertising campaigns, and new sales promotion ideas.

2. Companies will increasingly move to marketing automation where they use artificial intelligence to carry out marketing activities that were formerly done by skilled marketers.

3. Companies will increasingly learn how to produce “lovemarks” with their customers and employees.

http://etalks.me/philip-kotler-marketing-for-better-world/


Edition  15 of Marketing Management by Kotler and Keller on Digital Marketing



New trends in marketing are co-creation, crowd-sourcing, sustainability, dynamic pricing, digital marketing, marketing automation, and growth strategies. Many of these are based on digital technologies.

Online Marketing Communication and Promotional Opportunities


Web Sites
Microsites
Search ads
Display ads
Interstitials
Internet-specific ads and videos
Sponsorships
Alliances and affiliate programs
Online communities
Email
Mobile marketing



Web Sites


Visitors will visit sites based on their need and judge a site's performance on ease of use and physical attractiveness. The physical attractiveness depends on typefaces, fonts and good use of color and sound. The statistics of visitors to various sites are collected by some agencies.

People have to be aware of the web site of an organization to visit it. For facilitating it, companies advertise their web site in all their communications. But the general practice now, is for people to use search engines to find the specific web site or web sites related to topics they want to visit. Hence search engine optimization has to be done by the company to get its web site included in the search results for more number of search terms. Search engine optimization (SEO) has become an important area in interactive marketing.

Key Design Elements of Effective Web Sites


Rayport and Jaworski propose that effective sites feature seven design elements they call 7Cs.

7Cs


Context: Layout and design
Content: Text, pictures, sound, video
Community: User-to-user communication
Customization: Site’s personalization ability
Communication: Site-user communication
Connection: Links to other sites
Commerce: Ability to conduct transactions


Microsite


Microsite is a site within the site of another related organization. For example, a vehicle insurance company can have a microsite on the website of a vehicle seller. Microsites can be sites paid for by an external advertiser/company. This explanation was given in the 13th Edition. In the oods/products classification, there is a category of unsought products. People do not visit websites of unsought products. Therefore microsites of unsought products can be hosted on websites of products in demand to gain the attention of the consumer.

Online Advertisements

The two major categories are Search Ads and Display Ads.

Search Ads

Search ads has a dominating marketing share today.Along with the general search results, search engines show some sites which pay money for it. This is the search ad feature. The average click through rates for search ads is estimated to be 2% and marketers are happy with this response and the cost of search advertising which is given as 35 cents per click. Google adwords is search ads program and people are specializing in finding out and bidding for key words that have better consumer responses.

Display Ads

In the early days of internet, banner ads had click rates of 2 to 3 percent. But very quickly the click through rates plummeted. Kotler and Keller give the opinion that display ads still hold great promise. But ads need to be more attention-getting.

YouTube Video Marketing


YouTube videos are popular as internet specific videos. Many brands are using YouTube to post videos having advertisement content and they are having very good number of views sometimes in millions.

Sponsorships
Internet content can be sponsored.

Alliances and Affiliate Programmes
The most popular ones are Google Adsense and Amazon affiliate programe

Online Communities
Nestle has 750 Facebook pages covering its various brands.

Email Marketing
e-Marketing Guidelines

Give the customer a reason to respond
Personalize the content of your emails
Offer something the customer could not get via direct mail
Make it easy for customers to unsubscribe


Social Media


Social Media Success Case: Dollar Shave Club


The video that went viral and got 12000 subscribers.
Uploaded on 6 March 2012
Now 26 million+ views
___________

___________


Website:  https://www.dollarshaveclub.com/

8 Content Marketing Tricks That Helped Dollar Shave Club Go Viral
Last Updated on March 26, 2019
https://www.quicksprout.com/content-marketing-tricks-that-helped-dollar-shave-club-go-viral/

Same content in another page:
https://cubatica.com/how-dollar-shave-club-soared-to-a-140-million-marketing-budget-in-just-five-years/

CMO Adam Weber’s View: How Dollar Shave Club built its brand on video marketing
As the company's first marketing employee, Adam Weber now serves as Dollar Shave Club's CMO, leading the brand's video marketing strategy.
July 20, 2016
https://marketingland.com/cmos-view-adam-weber-dollar-shave-club-video-marketing-184234

Mobile Marketing


Mobile is being now used to access internet and do transactions like booking tickets and online shopping. There are more than twice as many mobile phones in the world as personal computers. Mobile presents an opportunity to marketers to reach a big audience and also to reach them at more opportune time. Mobile advertising has already crossed $1 billion level and established itself as a viable advertising option. But the screen size being small, advertisers have to develop designs that are appealing and ease to users.

Marketing 4.0: Moving from Traditional to Digital



Marketing 4.0 is about balancing machine-to-machine (M2M) with human-to-human (H2H).

New Ideas in Marketing 4.0


‘Segmentation and Targeting’ to ‘Customer Community Confirmation’
‘Selling the 4P’s’to ‘Commercializing the 4C’s’
‘Customer Service Processes’ to ‘Collaborative Customer Care’
‘Brand Positioning and Differentiation’ to ‘Brand Characters and Codes’
‘Segmentation and Targeting’ to ‘Customer Community Confirmation’

Book

Marketing 4.0: Moving from Traditional to Digital


Philip Kotler, Hermawan Kartajaya, Iwan Setiawan
John Wiley & Sons, 05-Dec-2016 - Business & Economics - 208 pages

Marketing has changed forever—this is what comes next

Marketing 4.0: Moving from Traditional to Digital,  written by the world's leading marketing authorities, helps you navigate the increasingly connected world and changing consumer landscape to reach more customers, more effectively. Today's customers have less time and attention to devote to your brand—and they are surrounded by alternatives every step of the way. You need to stand up, get their attention, and deliver the message they want to hear. This book examines the marketplace's shifting power dynamics, the paradoxes wrought by connectivity, and the increasing sub-culture splintering that will shape tomorrow's consumer; this foundation shows why Marketing 4.0 is becoming imperative for productivity, and this book shows you how to apply it to your brand today.

Marketing 4.0 takes advantage of the shifting consumer mood to reach more customers and engage them more fully than ever before. Exploit the changes that are tripping up traditional approaches, and make them an integral part of your methodology. This book gives you the world-class insight you need to make it happen.

Discover the new rules of marketing
Stand out and create WOW moments
Build a loyal and vocal customer base
Learn who will shape the future of customer choice

Every few years brings a "new" marketing movement, but experienced marketers know that this time its different; it's not just the rules that have changed, it's the customers themselves. Marketing 4.0 provides a solid framework based on a real-world vision of the consumer as they are today, and as they will be tomorrow. Marketing 4.0 gives you the edge you need to reach them more effectively than ever before.
https://books.google.co.in/books?id=jN9mDQAAQBAJ

Marketing 4.0: Moving from Traditional to Digital - A Reading Review
https://www.linkedin.com/pulse/marketing-40-moving-from-traditional-digital-reading-aziza-amri

“Marketing 4.0” – A Podcast Interview with Philip Kotler
December 13, 2016
http://www.marketingjournal.org/marketing-4-0-a-podcast-interview-with-phil-kotler/

What Is The Future Of Digital Marketing?

https://www.forbes.com/sites/forbesagencycouncil/2018/03/28/what-is-the-future-of-digital-marketing


Marketing 4.0: Enhancing Consumer-Brand Engagement through Big Data Analysis

How big data can be used to enhance the consumer-brand relationship.


Ana Isabel Jiménez-Zarco (Open University of Catalonia, Spain), Asher Rospigliosi (Brighton University, UK), María Pilar Martínez-Ruiz (University of Castilla la Mancha, Spain) and Alicia Izquierdo-Yusta (University of Burgos, Spain)
Source Title: Socio-Economic Perspectives on Consumer Engagement and Buying Behavior
Copyright: © 2017 |Pages: 24

Abstract
Marketing evolves in parallel with technology. Growing research is focusing on Marketing 4.0: the marketing of big data.  Taking into account how consumers' behavior has been changing since the beginning of this century, this chapter seeks to review Marketing 4.0 concepts, analyzing how big data can be used to enhance the consumer-brand relationship.



Data Analytics Based Marketing  

Modern marketing organizations use data analytics to look ahead. They identify opportunities they didn’t know existed, and reveal subtle and addressable customer pain points. Data analytics help in visualizing micro level opportunities from big sets of data.

Data analytics can also predict the next best actions to take, including the right mix of commercial messages (for cross-selling, upselling, or retention) and engagement actions (content, education, or relationship deepening).

To facilitate data analytics,  data must be centralized  so that activities in all channels can be immediately analyzed to support real time, or near-real-time analysis and appropriate actions are taken in all channels based on the insight in any one channel. The usage by marketers of data analytics based recommendations and alerts has matured and marketing leaders have to understand how their department persons are using analytics information effectivly and should work with IT leaders to develop a shared vision for how data will be accessed and used. This now requires CMO and CTO/CIO collaboration. 


Marketing 5.0


To be edited and rewritten




How has Marketing changed from 1.0 to 4.0?

we have to help professional marketers move with the times, 
The idea of creating more periodic books of about 200 pages that would update professional marketers on the most important latest developments well so we came out in 2010 2017 I believe with one book which was 
called marketing 3.0 we didn't start with a book on 1.0 but

we use 3.0 to look backward at how marketing evolved all the way up to 3.0

so we defined 1.0 as the time when marketers assume that the customers are 
all rational the marketers are rational and the best way to sell something is to put a lot of 
facts out about the product and why it is different and it performs well

well uh the fact is we'd began to realize that it's more like the kind of
selling they used to do in Russia where they would put all that information and it was more not motivating
3:51
so we had to create something called marketing 2.0 to acknowledge the growing
3:57
role of emotions in the in guiding decisions made not only by consumers but
4:04
by even the CEOs too just think of yourself going in to buy
4:10
something you may even have a list I would bet that in the store you ended up
4:16
buying more things than you meant to buy so we see at the checkout counter some
4:22
candy bars we end up buying them so emotions play a very big role but also
4:28
in the decisions of CEOs because they're taking risks with very big decisions and
4:35
their own tolerance for risk their own emotional mindset uh comes into play so
4:42
we were describing 2.0 as emotionally loaded marketing understanding and then
4:49
we Define 3.0 as a kind of a new way to think namely
4:55
a lot of consumers hopefully a growing owner want to be what we call same

consumers not insane which no one wants but they're saying insanity is important

buying products that don't harm you not buying cigarettes uh

making sure that the products you're buying are not bad for the environment

that's 3.0 it's a more almost a more spiritual view

of good buying same buying so that took us to 3.0 now what happened is

um we started to move into a whole new generation called the digital generation

we had no remember normally most marketing was using TV advertising very

heavily 30-second commercials also using a lot of the print advertising uh and

and fancy pricing and so on but you know the digital age was coming into being

and we had to capture that and ask professional marketers to stack
6:11
getting um closer to the new social media that
6:16
was appearing Facebook Instagram and therefore they would um this may lead to
6:24
a different type of marketing which we call digital marketing and it's not that it should replace all traditional
6:30
marketing but the two of them together would be more powerful than just traditional marketing that and that led
6:38
to our uh Point our marking 4.0 book which was an introduction to digital
6:45
marketing so why are we at 5.0 now well because there are new techniques in
Why do we have Marketing 5.0 now?

marketing 5.0 in the digital age that we wanted to explain so that's my

long-winded answer to your question of what 1.0 2.0 all the way to 5.0 means


What are the main principles behind the book Marketing 5.0?

you've launched this book in 2021



 the whole uh question of digital marketing uh we introduce a view of how because consumers make their decisions and they go through stages and it's well known that that buying is a staging process.

certainly the first task of a company is to create awareness of your brand.

now awareness is not enough you want to also create an appeal they

they must not only know you but find you interesting enough to to to want to know

more and that's important because we introduced the word ask as the third

stage in the what we call the five A's it's a way to we say what are the five

A's of the journey because if you aren't prepared to answer a lot of questions

they will buy because the the risk is too high

so you have to anticipate how people who are interested in finding

your product appealing what would they like to know more they might like to know is has your company been around a

long time uh how does your product differ from competitive products so by

anticipating the questions you you advertise the information and then they

feel more comfortable account more comfortable enough to act to buy the first time it could be it

could be anything from a small product like a can of soup or it could be a car but they they act yeah and you hope
9:42
they're satisfied and if they're satisfied uh they will buy some more from you and have respect
9:49
for you so that's the customer journey and it's made up of touch points we have

to reach a point where we could say well exactly what medium was used to make

them aware uh what what ads what what vehicles uh at the touch Point worked

and and did your company look good at the touch point was it a moment of truth that the

customer felt by your statement so um this whole problem is  important

but I want to lead to the next slide Julia because it shows what happens

and this repeats the slide but we're beginning to say there's really a

stage a state of transitions and we need our marketing focusing on

each of those States for example what can we do to make an aware person a

person who finds the product appealing well we use things like branding 

marketing Communications and so on and that we could spell out a lot of

things that will create an appealing feeling in the customer in the prospect

who might become a customer another transition is uh after a person

is appealing finds it appealing what kinds of questions do they ask well we

should do some social group interviewing and we will get a sense of what new

consumers might think about and want to know about and again there's another ratio between people who have asked a 
lot of questions and and we're satisfied enough to act and finally those who act

how can we make them into an advocate now the word advocate is very important

great it's one thing to have a customer who buys a few times hopefully that customer could be defined

as a loyal customer now a loyal customer is not enough anymore it's wonderful if you have

customer liability you would like that customer to be enthusiastic

if he is in a conversation or she's in a conversation with someone about buying a

car and they bought your car this person  who bought your car if you're that

person says boy am I satisfied with my car that company makes really one of the best cars for that purpose then you have 
one or more customers who are going out of their way to praise you and you know

what they're doing they are your marketing department if you can't get your new customers to include a number who are fans of your company and talk a lot about you favorably then maybe

you're not a very exciting customer that company I mean so advocacy is an

important thing that we have okay thank you totally agreed

um 

okay I'm gonna stop sharing the screen for a moment just so we see you bigger again uh and also think it
13:04
underlines the idea of Word of Mouth marketing so if you manage to really capture the attention and to make people
13:10
and customers your Advocates I think uh we can all be much more successful in marketing right yeah 

Philip Cutler in What are the main technological driving forces in Marketing 5.0?
13:17
your book uh marketing 5.0 uh you were looking at the customer Journey which is
13:22
so important uh to optimize uh from the very start to the very end
13:28
um but also you were introducing technology various different technologies that are becoming more and

more important in marketing uh what would you say are these main technological drivers and forces that we

see and experience today as marketers 

okay turn to the next slide Julia

it turns out that the 5.0 book wanted to also the next slide yeah

um and and that book wanted to um mention some of the newer techniques

now could we make this aside a little larger let's see if I
14:10
is this large enough for you there we go yeah because the book says
14:17
some very important things here and I'm just going to be brief about them namely
14:22
uh there are three gaps that this uh book is recognizing the first one is
14:28
called the generation gap and that has to do with
14:33
um a company should ask who is our best
14:38
prospects you know for some products for example for the manufacturers canes
14:45
you know a walking stick it's not for the uh the the young people it's for
14:52
older people who um can use a cane and to support themselves a little more so what is the

general what are the characteristics of people who are in their 60s and 70s and
15:05
so on uh or you might want to reach the youngest group of kids growing up on the
15:12
new music but what we are emphasizing is that everyone grows up during a special
15:19
set of times made up of the music of the times the
15:26
central ideas that are driving people at the time and we want to know what what
15:31
it was like for that Target Market because we can use some flashback to
15:39
those times they grew up in and use what we call Nostalgic marketing not
15:44
especially if there's a feeling Oh What A Wonderful Life I had when I was
15:50
growing up nostalgic thinking um so we we spend a lot of time asking
15:56
you to define the generation of the people you're trying to reach the
16:02
digital divide was another problem that we took up because a lot of people don't
16:07
have computers at the time so what the computers were doing uh
16:13
making it uh more successful for people who had computers and and leaving behind
16:19
a lot of other people who were reachable it really meant that we needed to use a
16:25
lot of digital traditional marketing and mass marketing because many people didn't have computers at the time uh and
16:34
and so we had to do the blending of traditional and and uh this and digital
16:40
and we wanted to recognize also Prosperity polarization namely that income differences that people had
16:47
because who are we aiming for can they afford the product where are they to be
16:52
found if it's an expensive product and so on so then we went on and we distinguished
16:59
different types of marketing uh data-driven marketing became an obsession namely why should we just
17:07
assume we know how people buy a car or any other product maybe we have to
17:13
collect real data and do a lot of good marketing research and maybe we need
17:19
to have um actual individual data not just group data but what is Joe like what does Joe
17:28
read what does what stores does he shop in
17:34
um what movies does he see uh so things like that is
17:40
means that we became customer driven individual customer driven marketing as
17:46
a New Prospect in other words you heard the term customization how to make your
17:52
product appeal to that specific individual or we would use the term personalization we wanted to make sure
17:59
it's had a personal meaning to the person so that was Data driven marketing predictive marketing was to set up your
18:06
marketing tools so you could predict what the sales would be based on the set
18:12
of variables and usually you use what we call regression multiple regression
18:17
analysis which took some key variables and their weights were allowed allowing
18:26
us to predict how many units of our product would be sold then we talked about in the same book
18:33
augmented marketing and uh it meant that you could do extra things and a good
18:41
illustration of that would be let's say a person wants to buy some 
furniture from Ikea and um they don't know what it would look like in their room
so we can create a picture of their room where they plan to put the furniture and
we couldn't superimpose the pieces of furniture that they might be interested in and actually designed the room filled with Ikea furniture which might be their living room or dining room or whatever so that's augmenting the reality it's oh it's reality marketing it's using the real world of the consumer another
example would be a woman who wants to know what she would look like to wear a certain dress we can superimpose the dress on the woman in a mirror and then we talked about agile Marketing in times
of great change how how do you remain agile so and now if we look at the other side
of the screw of that example 

we wanted to say that the main points in 5.0
marketing it had six enablers I'll reach read the list 
the huge
increase in computing power was changing marketing 
the open source software was
20:01
improving all the time 
the widespread diffusion of the internet among more
20:07
people than ever 
Cloud Computing Made A Difference 
the ubiquity of mobile devices the lap the laptop the mobile phone and the fact

that real data of about real people real individuals was being collected 
so all of that made 5.0 important and that's what you find in the book

so thank you very much for giving us so many insights into the technological forces and drivers
um it was also really interesting to go when I read your book to go very deep into HR marketing data-driven marketing
20:46
into all these aspects that influence us as marketers today um so that was a great summary about
20:53
ongoing developments when you think of companies uh that are currently using
What companies can be seen as role models in terms of Marketing 5.0?
21:00
marketing 5.0 which case studies or specific entities come to your mind


One of them that I'm very fond of is the company called Unilever uh and
they are worldwide uh and uh they were run the company was run by Paul Pullman
who's was brilliant in his 10 years of uh running the company uh getting uh
21:26
their uh size up from something like 36 billion to 60 billion uh but the main
21:33
thing about Paul is he wanted to be uh sure that the company has a clear
21:39
purpose he distinguished actually between purpose vision and Mission uh

purpose is why you're doing something and then vision is what you're doing and

Mission is how you're doing it and then he wanted to um say that we are not just in the
21:57
business of making money for the investors that's business is
22:04
more than that business is about serving all the stack the stakeholders we're not
22:09
successful at all if our employees are not successful if our suppliers are not
22:16
successful so he distinguished seven different groups of stakeholders

and they all were important to be rewarded they should be sharing in the

income produced not just the investor and then he said my plan is always long
22:35
run I never make just a short run plan in fact I tell the in uh the market I'm not even going

to tell you how much money I'm going to make next year because then you if I were you're going to hold me to it and
22:48
it will reduce my flexibility but I will tell you this I'm going to double the size of the business over the

next 10 years I'm going to end up um uh making sure that there's we're
23:03
producing with more and more efficiency and less harm to the environment and I'm
23:08
also going to take up some social causes because businesses are being affected by these social causes and sure enough he 
got everyone excited about it and the proof was in the pudding he absolutely

grew his business to the size and said it would grow and his business he even told every
23:28
brand manager please define the purpose of your brand in the case of Dove the

the dove planets for women is to make them help them feel very beautiful and

very worthwhile not just um use the soap to clean dishes or
23:48
something else so I would suggest that that's one

example of a firm that is thinking marketing 5.0
nice I really like that approach and uh what do you does another example come to your


Can you give an example of a specific Marketing 5.0 campaign?
mind of a campaign maybe or something um where these Technologies you
introduce as part of your marketing 5.0 book come into effect I also like to cite uh another company
that I'm very impressed with I do a lot of work in Japan and uh the company
24:25
white high k k is very interesting because all of us are affected by YKK
24:31
why because they make the world's best zippers so uh someone uh with a purse or
24:38
a briefcase or pants or whatever or there's a zipper it's ykk's brand it's
24:44
that reliable but Mr Yoshida and I work together a lot and I loved his concept

of the firm which is a 5.0 kind of concept that it's there to produce value for all the
24:59
participants including the consumers of course uh he's very conscious that
25:05
workers themselves should not only work for Wages that's not a way to have a a
25:12
strong income he wants to make sure that they set aside money for
25:19
um their savings and for buying uh shares in The Firm they're working for
25:25
because of that since they would not only get a wage they would not only get
25:30
bonuses for working well they will also get dividend returns because they love
25:36
the company and it's part of their own uh shareholder business well if you look
25:43
at the diagram if you use a firm Laden with value production and remember marketing
25:50
is all about creating real value for all the participants and this The Firm shows
that um 


so Philip Cutler a topic that also interests me personally is uh the topic
How do you see Omnichannel marketing?
of omnichannel marketing I have recently held a lecture on it it's a concept you
26:11
introduced as part of your marketing 4.0 book so I'm curious uh how do you see
26:18
Omni Channel marketing because from my view find a lot of companies want to get there they're not there yet uh how would
26:24
you describe the main principles and ideas behind it and do you have an advice for companies that really want to
26:30
implement it over the years to come yeah you know most companies uh start
26:35
off with a single Channel distribution I mean a company that makes food for the public wants to be uh had on the shelves
26:43
of supermarkets let's say uh but sometimes they go further and they add

another Channel and another Channel a good example would be a Starbucks Starbucks had one channel at

the beginning which the only place to get Starbucks coffee was to go to the shop which itself was designed to be an

experience away from home a wonderful experience people call that your third home the first home was your home and

the second was your office and the third was Starbucks but that wasn't enough

then they added uh the idea of the coffee would be obtainable in the off

the shelves of supermarkets so you can make Starbucks coffee at home you don't have to be at a store

then later on as gas stations began to have

um Candy and and soft and and soft drinks and so on sometimes you would see

there the Starbucks Outlet in part of the gas station now what it means is they have three channels now they

normally have three different managers of those channels who don't really talk

to each other they each want to optimize the channel that they manage but then it

could create confusion if one channels prices are way off the line of the other

channels uh if the ads are saying different things so the difference

between running your business as a set of multi it's called multiple channels

versus Omni channels is whether or not you're managing them as one unit

I'm the channel means you're wherever they go for what you're selling they get

the same impression of the brand its value uh its price being reasonable and
28:39
so on and so forth so it's an it's a discipline put over multiple channels to
28:45
make them all work with the same delivery of value that's called on the
28:51
channel marketing thanks for summarizing it and I think as we um proceed in the digital era it's
28:57
becoming more and more challenging for companies uh to actually incorporate uh these ideas across all the channels no
29:04
matter where people get in touch um yeah great um so you're based in the US
What are the differences in today's marketing in the US versus Europe?

Philip kotler thanks by the way for joining from Florida today uh and you've had International collaborations all over the world so what would you say uh are the differences in marketing in the

US versus in Europe oh well I think that um Europe has the

thing they call the gdpr which is really called the general uh data protection
29:37
regulations and uh we don't have those uh and as such uh the Europeans
29:44
generally uh value privacy uh and want to protect privacy and uh it makes it a
29:52
little different uh therefore for companies in the same International
29:58
firms in the US they can get a lot of personal data about people
30:05
um data that will help them to know whether that is the real Prospect or not
30:12
so that data helps you bring more effective in sending messages to people
30:20
who might become customers rather than Mass marketing but in Europe
30:26
um there's a lot of protection against getting data about individual people and
30:34
what what media they are watching what magazines they are reading uh when they
30:39
shop where they shop what uh how long do they stand in front of the wine section
30:45
of the store so I would say that the European marketers will be find that
30:53
they have less of efficiency than Americans have in what we call
31:00
data driven Marketing in other words it will slow down even the international
31:06
the multinational company that is very operating Europe and in the US the U.S
31:13
will have more efficient and profitable results possibly than the European
31:19
marketers and and that's that delivers however to the European marketers more
31:24
protection of privacy I have to think of a personal example because I was running marketing ads in
31:31
the US and also in Europe and during my time in the U.S we could Target People based on income and I was very surprised
31:37
that this was not the case in Europe I'm totally with you here and uh so looking at the European companies then
31:44
and also let's say uh as an example at the fact that the AI tool Google Bart

was delayed and could only be launched later in Europe versus the US what advice uh can you give a company
How can european companies drive innovation without falling behind the US?
31:56
specifically how can they drive Innovation how can they still be competitive without falling behind the
32:01
US um well there's some wonderful things
32:07
about European companies that uh and the quality of their goods and services I often spend time in Italy and there's
32:14
nothing like handcrafted products and and the beautiful fashion Goods the
32:19
leather goods uh and that's the way they can they have monopolies too you know
32:25
you might say that um every company wants to be so special
32:31
that they're almost there's no second hand for second firm that can compete
32:36
with them um you remember maybe the German firms that were called um
32:43
they they had a name they were small firms that were fantastically uh niched
32:50
they were the only ones making the world's best binoculars the only one another company was making the world's
32:57
best umbrellas big umbrellas that wouldn't fall on people outside when they were
33:03
stopping their coffee or something uh those German Brands were really
33:10
monopolies in a sense they were able to charge much more because their product
33:16
was more special and um and and Germany thrived and a huge
33:23
number of niched companies so I think niching is
33:29
very a good strategy for European firms to become the master of some particular
33:35
Special Touch that they put on that product that they're selling or that
33:41
service the real problem is um what about small businesses and
33:47
you're because many European countries want to protect their small businesses
33:54
and the fact is that it's the ambition of the big companies to to buy up the
34:00
small companies get them under their own Wing but by the way many small
34:06
businesses get started because they want to build them up then build it up to a point where they will
34:12
be acquired by a big company they don't want to remain small they want to get the rent from selling having created a
34:21
business that someone else buys but I still think that Europe is
34:27
so many beautiful cities and places and having the local bakery having the
34:34
local flower shop having small scale and having products made within that very
34:41
country that doesn't have to import from Asia or
34:46
somewhere else 40 000 miles away or something products we we have to aim in
34:54
Europe to it to keep cities distinctive and and small and with regional supplies
35:01
rather than International supplies yeah I also had to think about the made
35:07
in Germany claim or made in Italy claim which is very popular in the US and you really sell products just uh by putting
35:15
this stamp on it uh so just practice the most impactful companies in the world
How does the shift of the dominating industries impact the economy in general?
35:20
and uh when you look at which companies have actually dominated the industries over the past decades uh let's say in
35:27
the 60s there was the automotive Industries now we've moved and transitioned to the tech and software companies uh how do you think uh do
35:34
these shifts impacting economy overall and do you think we need to rethink our business models in Europe and abroad or
35:42
and if yes how well you know there's a article that came out re recently called is Big
35:49
Business too big and there is uh I have a friend named
35:55
Jack the chef chef who has written a lot and he has proposed proposes that most
36:03
uh Industries will end up with the rule of three there will be three firms
36:10
the leader the second one and the smaller one trying to be the second one and the second one trying to be the
36:17
first one and uh that bigness is part of uh the uh nature of things now the fact
36:26
is that many companies want to merge and acquire and grow you wish a company would grow
36:33
just on the basis of their organic offerings no uh that's not enough in
36:39
many cases so they grow by acquiring other firms so we need good laws on the
36:44
mergers and acquisitions we should say um for example if Kodak at the time when
36:52
there was such a great firm bought a Fujifilm a company I liked so
36:58
much and worked with uh we they would never allow that because the two dominant filmmakers would have been one
37:06
company so very important to have good competitive policy
37:13
um in any country in every country to prevent mergers that would hurt the
37:18
customer and reduce the amount of supply uh and I would say that
37:26
um that we have been a little uh sloppy
37:31
about that in both the United States and Europe uh that more regulation uh for
37:38
keeping the markets all competitive uh must be worked on more vigorously
37:46
mm-hmm thank you very much um so I'd like to uh take the time to
37:53
allow the audience now and the viewers today to ask some questions uh so whoever wants to ask Philip kotler
38:00
question please type it into the chat now and um
38:06
yeah let's see many uh responses uh people really enjoy the interview with you today a lot of people could join
38:13
from all over the world and especially from Europe and so one of the questions
38:19
I see here is uh Philip kotler what are the challenges to integrate AI uh into
38:26
existing Market processes well I should have mentioned uh what's
38:32
happening with AI it's so important um it turns out that many companies are
38:39
using artificial intelligence in different processes and decision making
38:45
that they're not even aware of but the most visible thing was to hear about
38:53
algorithms and that algorithms are going to do a lot of our decision making for
39:00
us so let me just make a statement about that namely just think of a banker uh every
39:09
day he's asked for agreeing on to make a loan to someone
39:14
and then you can ask it as the banker had a good record that most of the loans
39:20
get paid off because after all we trust his experience in doing this for 30
39:26
years but the truth is when we look at what the Banker's results were we'll
39:31
find that he made a lot of loans that never paid off so that shouldn't happen so could we see
39:39
where he went off and can we use his normal decision-making variables and
39:46
improve on them so that where he made mistakes doesn't happen again and that's called creating
39:53
an algorithm now if it's a really successful algorithm you don't need the banker anymore to make decisions in fact
40:01
the customer comes and says he wants a loan the banker instead of just thinking
40:07
in his own mind whether to make a loan he goes to the algorithm he puts in the
40:12
numbers because there are questions that must be answered and then the algorithm says yes or no
40:18
and that's being done at universities now for admission to the universities they have an algorithm and not just an
40:25
admission officer so more business decisions will be uh
40:31
made by successful algorithms that minimize losses and so on but the
40:38
biggest thing in AI that has come along is called chat GPT or generative AI
40:46
and there's different versions of it but it's going to revolutionize even the
40:51
marketing 5.0 that we talked about uh in fact it will be in maybe our 6.0
40:58
book uh but the point is we are able to put a question
41:04
to the whole to to the software and the
41:09
software can print uh an answer an intelligent readable answer like we
41:15
might say um what is happening to what what is the latest happening to the whole idea of
41:22
influencer marketing where some companies get a group of high visible
41:29
people who are big influencers they have very big networks and they can pay these
41:34
people to show that they use the product you want everyone to use well
41:41
that AI generated AI will give you a three-page essay on
41:48
what's Happening to influencer marketing and you could use that as the beginning of now if you were a copywriter
41:56
and had to get a good message you can ask the machines to make a message out
42:01
of the points you make and and it's a very good starting point message maybe we're not not going to need as many
42:08
copywriters maybe the um the new system is going to
42:13
generate ads for us we just tell them we want an ad showing a pair of shoes of a
42:18
certain pair of colors and floating in the air and it makes an ad so the once that AI will be come
42:27
essential parts of of the marketing planning of
42:34
the marketing professional marketers I totally agree and also uh from my
42:39
experience a lot of marketers are using chat GPT already on a daily basis and it does to some extent replace content
42:45
writers and also when you brought in the influencer topic I found that very interesting uh because when I read your
42:51
book and did some more research on it apparently there's two 200 artificial intelligence influencers already out
42:58
there so you don't even need Humanity anymore uh to be an influencer if you can control the content much better uh
43:05
let's get to another topic of um one person in the audience they're asking
43:10
what impact do you think uh does metaverse have and what impact will it
43:16
have on Modern marketing well the metaverse means different things to different people but you know
43:23
that back in uh before even Zuckerberg and and Facebook
43:28
changed their name to meta and talking about the metaverse there was a thing
43:34
called um oh I was a member of it um early something but uh what happens
43:42
is anyone could join they become an avatar they get a costume they assume a
43:48
name they meet other avatars uh actually you talk to someone else because you
43:55
find their costume interesting and then you could it it also moved to the stage
44:02
where you could buy products or Services you could buy a saying oh I'm gonna want
44:08
to build a house and put a fireplace in the living room and there was a person a
44:13
virtual person selling fireplaces and money was being created and exchanged so
44:21
in the literal sense a metaverse means you've created a an alternative reality
44:28
that really functions it resembles real the real world but it is made up of
44:35
avatars and sellers and buyers uh conducting business and I had a
44:42
son-in-law who became an avatar and I remember he made a lot of money uh
44:47
selling some some furniture to others in that universe will the question may be
44:54
how far will this go uh is it just a play thing um well some people think it's a good
45:00
way to test ideas by creating the artificial world and that it's it's and that land will be
45:11
bought by companies on the uh this artificial in this artificial world
45:18
and that these companies will put up a Disneyland in that artificial world of
45:23
their own and it could be exciting but it's it's still not going to be mainstream for a long long time the the
45:30
real world will be the mainstream yes it's it's going to be very exciting to see how far this trend actually goes
45:37
and uh we've got one more question um what is the future of marketing Automation and what role does AI play in
What is the future of marketing automation and which role does AI play in it?
45:44
it yes very good question uh all of them are good the one about automation uh
45:53
certainly there's a lot of clerical work in marketing a lot of files and folders have to be kept uh and so that should be
46:02
automated you don't need uh people actually uh using their time for
46:08
clerical purposes in marketing now the real question is can
46:16
decisions be made by Machine more or by the cooperation between a live marketer
46:23
and the Machine I almost always believe that that if a machine can help the black
46:30
marketer then the team is fine I don't think the machine's going to take over
46:36
the the whole job there are zombies there are pictures of a future where the
46:43
robots take over no I I don't believe that's going to happen but here's the
46:49
thing um because most marketers have to go to sleep at night right all of us and
46:57
therefore who's taking care of the business let's say everyone who runs uh Unilever
47:02
is at sleep from uh uh 10 a.m 10 P.M to 8 A.M in the morning but things could
47:10
happen a competitor could go after make a price change or a brilliant ad move uh
47:17
while everyone's asleep so some people say well we should have what is called
47:23
uh assistance it's like a robot it's it's like if
47:30
anything happens to change while we're asleep decisions will be made to protect us
47:39
by anticipating what kinds of steps we should take if a price is cut by 20
47:47
what should our automatic robot do about that because we're asleep at the time so
47:53
there's talk about some automation of decision making but in limited cases so
47:59
far it's great to also hear your broader background um because marketing
48:04
automation is a topic that's heavily discussed in digital marketing and also to now see that you can take it further
48:09
to a management board or a decision making while people are sleeping uh so
48:15
one other question we got from the audience is uh which connections do you see between a consumer branding and
Which connections do you see between consumer Marketing and Branding and Employer Branding?
48:21
marketing and employer branding oh they are very intimately related
48:28
don't forget to join the two in your thinking process let's take a hotel uh
48:34
Hotel may look very beautiful rooms and and and so on but the the one who rents
48:45
a room at the hotel finds when he goes into the room that it's not very clean
48:50
um that there's there's a cigarette smell in the room which wasn't expected
48:55
and and may find out at the basis the employees are not happy people the
49:03
people are who are supposed to make the beds up carefully uh they they're
49:08
underpaid uh they they're not proud of the place uh they're sabotaging the
49:14
place so unless you every Hotel
49:19
um the outstanding hotel is one that says our employees our marketers
49:24
our clerks the receptionists from the moment someone comes in everything
49:30
should go right as expected as we have designed our brand to say to people and
49:37
and so we must have we must get the best employees pay them the best we can pay
49:44
and then we'll be a successful business thank you very much uh so there's one
49:50
question uh from a viewer um I also actually thought about it when I when I
When do we reach the point, where Marketing 5.0 becomes reality?
49:55
read your book because it's um there's so many new developments and Technologies being introduced and uh
50:03
these few are now wonders when are we gonna reach the point where actually marketing 5.0 becomes reality or becomes
50:10
true and where we reach this state of Ideal customer Journey
50:15
well here's the thing uh the digital Revolution was the big thing to happen
50:20
and that's what we talked about in uh Five Point uh 4.0 originally and then
50:25
all the tools came out in 5.0 and um
50:31
we're we we're never going to be perfect in our marketing there will be mistakes
50:37
made all the time um but the thing is that
50:44
we should have the mantra we're in the business to create value
50:52
in terms of not what we think value is but what we think is value in the
50:59
consumer's mind and in the minds of our employees and the minds of our suppliers
51:05
and Distributors so basically uh
51:11
we are aiming to be an authentic firm uh standing behind every claim we
51:19
make the brand is our it could easily be damaged it's worked
51:26
on all the time we need you know to be good as a company you
51:31
better have three good managers in in the marketing area a good customer manager who knows how to attract uh and
51:39
serve good customers a good product manager who brings the latest things
51:44
that we can offer to Consumers to excite them and so on and a good brand manager
51:50
who can keep on top of the brand all the time and making sure that it sends the message the right messages
51:57
that uh describe why how we're adding and creating value for the world for
52:04
Better Lives to be led by more people and so specifically in the P2P industry
Will there be a delay, when B2B-industries adjust to these ongoing developments?
52:10
because that's another question um the fears one viewer says there we heavily rely on relationships in world
52:16
of mouth marketing uh so do you think there will be a delay in terms of how quickly to B will adjust to these
52:23
ongoing developments or what is your view on that well B2B is uh very much is
52:29
larger marketing than even consumer marketing because behind every product that is sold to the consumer there was
52:35
so much work so many business to business transactions to get the shoelaces and the shoes and the leather
52:42
and all that so B2B marketers are they're often sales driven too uh but I
52:51
I think uh they are on top of things too remember take car manufacturers cars are
52:59
bought not only by consumers but they are bought by other divisions that want
53:04
a whole set of cars for their people or trucks and so on and uh B2B marketing
53:12
um whether it's chemicals or trucks or whatever uh has to be run by
53:20
people who as a matter of fact B2B marketers usually know the customer much
53:26
better because they have sales people talking to customers
53:32
and they should be able to adjust more into the real mind of anyone they're
53:38
selling something to then even the consumer marketer who doesn't know and Joe versus Bob or Robert that well
53:48
anyways I'm very enthusiastic about marketing 5.0
53:53
it's basically about uh bringing all these new developments to the mind of uh
54:00
traditional marketers so they move into the digital age and it's not enough to
54:06
to know your in the digital digital age of marketing but to do your marketing
54:12
digitally yeah as well as traditionally yeah and we'll have more to say about that in
54:18
these we're coming out with 6.02 because there are other new developments that uh professional
54:26
marketers are anxious to hear about yeah you told me uh 6.0 is coming out soon but in the meantime it's still
54:33
marketing 5.0 so uh one viewer is wondering what key qualifications do you need as a marketer uh to actually
54:39
succeed in today's marketing world and I'm gonna add one question to it is it
54:45
actually uh one uh key qualifications or does it really depend on the area within
54:51
marketing oh I I think that um that all areas of marketing uh have to
55:00
go digital now and they also have to know about these new techniques which we
55:06
didn't have a chance to talk about um we did talk about Ai and the idea of
55:12
the algorithm and so on uh all of these are relevant to all forms of marketing
55:18
uh but try to remember that a lot of marketing is product marketing but
55:25
products really exist as devices for delivering a service
55:30
and there's a lot of talk increasingly is keep your mind on the service or the value we're trying to train to create
55:38
through the means of a product now the other thing that's happening is many products are becoming dematerialized
55:46
uh we used to um in order to listen to music we had to buy records now we just
55:52
uh sign up with Spotify uh we used to get a physical newspaper
55:58
now we get it all on on our computer um so there's a lot of dematerialization
56:05
going on which is good because we're in a world of climate change and uh heating
56:12
a world that is getting warmer because of of our basic sources of of Supply
56:20
which is the oil industry and we all have to be careful about
56:25
and how much product in the earth carry uh and the elite materialization that's
56:32
taking place is pretty helpful to reduce the amount of physical product and getting us to more to the purpose of
56:40
products which is service yeah well thank you for your questions uh uh very much
56:46
there's so many more questions that people want to uh hear about like your opinion about
56:52
um so one of it is uh there's like a specific artisanal one-of-a-kind product you mentioned and in reality we faced
How does a Marketing 5.0 strategy look like to be successful with targeting limitations?
56:59
limited targeting possibilities and so philucadler from your Viewpoint how would a marketing strategy a marketing
57:07
5.0 strategy look like uh that could still be successful with these limitations that we're facing
57:15
well uh limitations are opportunities they may be uh disasters for some but
57:22
opportunities for others uh those who uh people should never say
57:30
well the world is pretty settled in there are no new opportunities not at
57:35
all and I often give a lecture on how some things were were too settled and
57:43
and people were brighter enough to to break into them for example who would
57:48
ever charge so much for a cup of coffee uh when coffee a coffee bean is is just
57:55
a few cents why Why Pay four dollars for a cup of coffee or an ice cream that is
58:02
uh as expensive as it is today when it's a good one so there's always ways to
58:09
either come out with the lowest cost or the highest cost and there are always new things to be
58:16
added to any uh area of of enjoyment so
58:22
I'm all all good marketers are optimists and they're creative people too
58:29
great um so we we don't have so much more time but let's do two more questions so one
What challenges and chances are important to consider regarding the non-profit-sector?
58:35
question is um how about the non-profit sector what challenges and chances are important to consider in 2023
58:42
yes well I did a lot of work with non-profit firms like the YMCA and the
58:47
Very and the companies that are environmental firms and so on uh do you
58:53
know originally these firms were places that um people with degrees in marketing went
59:00
to because they didn't like businesses much as the non-profit purpose
59:07
uh and I had to spend a lot of time convincing non-profit firms uh that
59:14
basically they are businesses too they're not businesses to make big profits they are businesses to grow and
59:22
create more value for people and uh I even wondered whether we should
59:30
how much to pay people who are CEOs of non-profit firms because it gets a
59:36
little uncomfortable and it's a non-profit firm paying millions and millions of dollars to the CEO and some
59:43
some bad cases occurred like that but we need a non-profit world as rich as as uh
59:50
as the for-profit world uh we we need more organizations that are there
59:57
because they care and and that profit making firms cannot pay attention
1:00:03
to certain problems and the question really has to do with uh whether education should be for-profit or an
1:00:10
after-profit and whether Health should be for-profit or not for profit and companies and countries differ in that
1:00:18
and I think some of the very basic things like education and health have to
1:00:23
be more of a non-profit uh aspiration thank you very much a totally agree
1:00:30
agree on that and uh one funny short question for the end uh what is your
What is your view on social media channels like Tiktok?
1:00:35
view on social media channel channels like Tick Tock and how do you see how do you think will they be relevant in the
1:00:41
future yeah well I think um the different uh social media platforms and I have a
1:00:47
whole book on the subject uh are important uh Facebook is going through
1:00:53
changes now uh Instagram went through great changes uh Tick Tock has caught
1:00:59
everyone by surprise it's it it it it's allowing more people to become visible
1:01:05
around the world uh all of a sudden for dancing in a funny way for five seconds
1:01:11
you know and so on uh Tick Tock some people want to rain rain and then
1:01:17
because they think it's taking too much attention and hurting some of the social media events just like another thing
1:01:24
happening in the streaming movies have become uh a source of discontent because
1:01:30
people then end up watching one thing for several night evenings when they
1:01:36
should be watching different movies or doing other things by it's using up their Buy down to just sit and watch a
1:01:44
movie a screaming movie for a long long number of days
1:01:49
lots of things are happening but they're all uh challenges for for the creative
1:01:55
marketers around us thank you very much Philip kotler
1:02:02
um also thank you for you dear audience uh just so you know this interview will be recorded and available on YouTube
1:02:07
next week and also uh we will include a link to the presentation uh in the
1:02:12
comments of the YouTube video also Philip kotler uh and I were having two more interviews coming up one on the
1:02:19
topic of regeneration and one on the topic of entrepreneurial marketing and I'm very excited uh to be asking more
1:02:26
questions and also to giving you Their audience the opportunity to ask your own questions as part of these live
1:02:32
interviews uh Philip kotler thank you so much for your time it's such a great uh it's so
1:02:37
nice to really be in touch with you now on a more regular basis and uh thank you so much for your ideas and thoughts on
1:02:43
Modern marketing and I look forward to seeing you very soon thank you Julia and I enjoy very much
1:02:49
your questions they've made me think and almost maybe another book will come out of my thinking about the things you've
1:02:56
raised questions about in the audience raised questions about thank you right until the next time until the next time
1:03:04
bye [Music]




https://www.marketing-psycho.com/marketing-5-0/

Marketing 5.0: Technology for Humanity


Philip Kotler, Hermawan Kartajaya, Iwan Setiawan
John Wiley & Sons, Feb 3, 2021 - Business & Economics - 224 pages
Rediscover the fundamentals of marketing from the best in the business

In Marketing 5.0, the celebrated promoter of the “Four P’s of Marketing,” Philip Kotler, explains how marketers can use technology to address customers’ needs and make a difference in the world.

In a new age when marketers are struggling with the digital transformation of business and the changing behavior of customers, this book provides marketers with a way to integrate technological and business model evolution with the dramatic shifts in consumer behavior that have happened in the last decade.

Following the pattern presented in his bestselling Marketing X.0 series, Philip Kotler covers the crucial topics necessary to understand modern marketing, including:

· Artificial Intelligence for marketing automation

· Agile marketing

· “Segments of one” marketing

· Contextual technology

· Facial recognition and voice tech for marketing

· The future of Customer Experience (CX)

· Transmedia storytelling

· The “Whatever-Whenever-Wherever” service delivery

· “Everything-As-A-Service” business model

· Internet of Things and blockchain for marketing

· Virtual and augmented reality marketing

· Corporate activism

Perfect for traditional and digital marketers, as well as students and teachers of marketing and business, Marketing 5.0 reinvigorates the field of marketing with actionable recommendations and unique insights.

https://www.blinkist.com/en/books/marketing-5-dot-0-en

https://www.pkmarketing.jp/en/articles/marketing5_05_en/

https://www.bookey.app/book/marketing-4.0

https://www.linkedin.com/pulse/philip-kotler-father-digital-marketing-riya-sangal/

Kotler Digital
Helping companies navigate the vast digital world

Advertising Services Irving, TEXAS (TX) 649 followers 201-500 employees
https://www.linkedin.com/company/kotler-digital/about/



Updated on  11.12.2023,  18 July 2021,  30 May 2019, 2 May 2019














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