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at Wiley – Richard Narramore, Tiffany Colon, and Jocelyn Kwiatkowski – who made it possible for us to share Marketing 3.0 and Marketing 4.0 with the world.

      PROLOGUE

      FROM MARKETING 3.0 TO MARKETING 4.0

      For the past six years, marketers whom we met around the world have been asking for a sequel to Marketing 3.0. Considering the dynamics of marketing, many would expect Marketing 4.0 to be in the pipeline.

      In Marketing 3.0, we talked about the major shift from product-driven marketing (1.0) to customer-centric marketing (2.0), and ultimately to human-centric marketing (3.0). In Marketing 3.0, we observed customers transforming into whole human beings with minds, hearts, and spirits. 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 2010, many marketers have been adopting the principles of Marketing 3.0. 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 3.0 in Ubud, Bali. The museum was built with the kind support of the three princes of Ubud: Tjokorda Gde Putra Sukawati, Tjokorda Gde Oka Sukawati, and Tjokorda Gde Raka Sukawati. 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 3.0, especially in terms of technological advancements. 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. New trends are emerging from this: the “sharing” economy, the “now” economy, omnichannel integration, content marketing, social CRM, and many other things.

      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 4.0 as the natural outgrowth of Marketing 3.0. 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 4.0 in those industries.

      Finally, the third part describes in detail the major tactics of Marketing 4.0. 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 4.0 describes a deepening and a broadening of human-centric marketing to cover every aspect of the customer's journey. We are hopeful that you will find insights and inspirations from this book and join us in redefining marketing in the years to come.

      ABOUT THE AUTHORS

      Philip Kotler, the S.C. Johnson & Son Distinguished Professor of International Marketing at the Kellogg School of Management, Northwestern University, is widely regarded as the Father of Modern Marketing. He is ranked by the Wall Street Journal as one of the top six most influential business thinkers. The recipient of numerous awards and honorary degrees from schools all over the world, he holds an MA from the University of Chicago and a PhD from the Massachusetts Institute of Technology (MIT), both in economics. Philip has an incredible international presence – his books have been translated into approximately 25 languages, and he regularly speaks on the international circuit.

      Hermawan Kartajaya is the founder and Executive Chairman of MarkPlus, Inc., and is one of the “50 Gurus Who Have Shaped the Future of Marketing,” according to the Chartered Institute of Marketing, United Kingdom. Hermawan is also a recipient of the Distinguished Global Leadership Award from Pan-Pacific Business Association at the University of Nebraska-Lincoln. He is the current President of the Asia Council for Small Business – a regional council of affiliates and chapters of the International Council for Small Business – and a co-founder of the Asia Marketing Federation.

      Iwan Setiawan serves as the Chief Operating Officer of MarkPlus, Inc. (www.markplusinc.com), where he helps businesses design their marketing strategies. A frequent writer and speaker, Iwan is also the Editor-in-Chief of Marketeers (www.marketeers.com). Iwan holds an MBA from the Kellogg School of Management at Northwestern University and a BEng from the University of Indonesia.

      PART I

      FUNDAMENTAL TRENDS SHAPING MARKETING

      1

      POWER SHIFTS TO THE CONNECTED CUSTOMERS

      From Vertical, Exclusive, and Individual to Horizontal, Inclusive, and Social

      Charlie Frost was a conspiracy theorist who strongly believed that 2012 would bring the end of civilization. A couple of geologists in 2009 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 2012. 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. Companies such as Microsoft and Amazon eventually needed to acquire smaller yet more innovative companies such as Skype and Zappos. Even millionaires Bill Gates and Mark Zuckerberg were aware of the need for economic inclusivity. They donated their

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