New Wave Marketing

HERMAWAN KARTAJAYA ON WHATS NEXT IN MARKETING

By:

Hermawan KartajayaAsias Leading Marketing Strategist (CIM-United Kingdom)

President of World Marketing Association

Founder and President of MarkPlus, Inc

Tri-founder of Philip Kotler Center for ASEAN Marketing

Council of Advisors of the ASEAN Foundation

WHATWHATWHATWHATS NEXT IN MARKETING?S NEXT IN MARKETING?S NEXT IN MARKETING?S NEXT IN MARKETING?

NEW WAVE MARKETINGNEW WAVE MARKETINGNEW WAVE MARKETINGNEW WAVE MARKETINGTHE WORLD IS STILL ROUND,THE WORLD IS STILL ROUND,THE WORLD IS STILL ROUND,THE WORLD IS STILL ROUND,THE WORLD IS STILL ROUND,THE WORLD IS STILL ROUND,THE WORLD IS STILL ROUND,THE WORLD IS STILL ROUND,

THE MARKET IS ALREADY FLATTHE MARKET IS ALREADY FLATTHE MARKET IS ALREADY FLATTHE MARKET IS ALREADY FLATTHE MARKET IS ALREADY FLATTHE MARKET IS ALREADY FLATTHE MARKET IS ALREADY FLATTHE MARKET IS ALREADY FLAT


FOUR TYPES OF ROI-BASED MARKETING

BUDGET (INVESTMENT)

IMPA

CT (

RET

URN) NEW WAVE

SNOW WHITE

DOING SOMETHING (AND EFFECTIVE)

DOING EVERYTHING (..AND FAIL)

EFFE

CITI

VENE

SS A

XIS

EFFICIENCY AXIS

H

L

HL

LEGACY

SEVEN DWARF

DOING ANYTHING(BUT EXPENSIVE)

DOING NOTHING (BUT SALE!)


WHAT ARE THE KEY

CHANGES IN THE

BUSINESS LANDSCAPE

TODAY?


DECOUPLING:THE SHIFT

FROM TRADE OF GOODS & SERVICES

TO CAPITALMOVEMENT

(PETER DRUCKER, 1986)

TECHNOLOGY

ECONOMY

MARKET

S

O

C

I

A

L

/

C

U

L

T

U

R

EPOLITIC/ LEGAL

SHIFTING FROM PRODUCTIVITY TO

CREATIVITY

POLITICS: SHIFTING FROM

PARTY-LED IDEOLOGY TO

INDIVIDUAL-LED PERSONA

LEGAL: SHIFTING FROM

GOVERNMENT-LED TO GRASS-ROOT-

LED

SOCIAL: SHIFTING

FROM EXCLUSIVE TO

INCLUSIVE CULTURE:

SHIFTING FROM BELIEFS TO HUMANITY

SHIFTING FROM CLOSED TO OPEN

22 33

11

44

55

DIGITALIZATION

GLOBALIZATION

FUTURIZATION

SHIFTING FROM ROUND TO FLAT

SHIFTING FROM SILO-INDUSTRY TO

SEAMLESS INDUSTRY

SHIFTING FROM INFORMATION-AGE TO PARTICIPATION-AGE

Several key changes in the business landscape


PARTICIPATION AGE IS UNLEASHED BY THE EMERGENCE OF WEB 2.0

FORMAT1

Domain of

Content Created by

Architecture

Viewed through

State

Primary Unit of content

Mode

Web 2.0

(2003- beyond)

Web pages, plus a lot of

other content shared

over the web, with more

interactivity; more like an

application than a page

Web 1.0

(1993-2003)

Pretty much HTML

pages viewed

through a browser

Browsers, Mobile, and everything

Web browser

EveryoneWeb Coders

dynamicstatic

mass amatuerizationgeeks

Post / recordPage

Web ServicesClient Server

Write & ContributeRead

Table taken from Web 2.0: Is it a Whole New Internet? by Jim Cuene

Participation Age is inspired by Sun Microsystems


BLOG IS ONE OF THE MOST RECOGNIZED EXAMPLES OF WEB 2.01


BOOK WRITING IN THE PARTICIPATION AGE: WE ARE SMARTER THAN ME

EXAMPLE1

We Are Smarter Than Me is a collaborative-writing project using wiki

software, whose initial goal is producing a document about decision

making processes that use large numbers of people, to be published as a

printed book, late in 2007, by the publishing conglomerate Pearson

Education. Along with Pearson, the project's four core sponsors include

research institutes of MIT and the Wharton School.


POLITICS INDIVIDUAL

PERSONA

PARTY-LED

IDEOLOGY

TOFROM

SHIFTING IN POLITICAL LANDSCAPE2


CHANGE IN POLITICS: FROM PARTY IDEOLOGY TO INDIVIDUAL PERSONA2


POLITICS 2.0 - OBAMA NEW WAVE SCHOOL OF MARKETING2HOW TO BUILD

A BRAND LIKE

OBAMA

Taken from The Brand Called Obama , by Kevin Ohannessian, Fast Company, March 20, 2008


POLITICS 2.0 - OBAMA NEW WAVE SCHOOL OF MARKETING2


THE CHANGING ECONOMIC

LANDSCAPE

3

CAPITAL MOVEMENTTRADE OF GOODS AND

SERVICES

TOFROM


The primary-products economy has come "uncoupled" from the industrial economy.

In the industrial economy itself, production has come "uncoupled" from employment.

Capital movements rather than trade (in both goods and services) have become the driving force of the world economy. The two have not quite come uncoupled, but the link has become loose, and worse, unpredictable.

THE CHANGED IN THE WORLD ECONOMY

Source: THE CHANGED IN THE WORLD ECONOMY BY PETER DRUCKER, FOREIGN AFFAIRS, 1986

THE CHANGING ECONOMIC LANDSCAPE: THE SHIFT FROM TRADE OF GOODS &

SERVICES TO CAPITAL MOVEMENT 3


THE CHANGING SOCIOCULTURE

LANDSCAPE

4

CULTURE

SOCIAL

HUMANITYBELIEF

INCLUSIVEEXCLUSIVE

TOFROM


4 INTERFAITH: INCLUSIVITY AND HUMANITY


OPENCLOSED

TOFROM

THE CHANGING MARKET LANDSCAPE5


FROM CLOSED TO OPEN MARKET5

Source: DON TAPSCOTT, WIKINOMICS, 2006


WHAT DO THESE

CHANGES ACTUALLY

IMPLY?


MARKETING IS NOW HORIZONTAL !!!

DECOUPLING:THE SHIFT

FROM TRADE OF GOODS & SERVICES

TO CAPITALMOVEMENT

(PETER DRUCKER, 1986)

TECHNOLOGY

ECONOMY

MARKET

S

O

C

I

A

L

/

C

U

L

T

U

R

EPOLITIC/ LEGAL

SHIFTING FROM PRODUCTIVITY TO

CREATIVITY

POLITICS: SHIFTING FROM

PARTY-LED IDEOLOGY TO

INDIVIDUAL-LED PERSONA

LEGAL: SHIFTING FROM

GOVERNMENT-LED TO GRASS-ROOT-

LED

SOCIAL: SHIFTING

FROM EXCLUSIVE TO

INCLUSIVE CULTURE:

SHIFTING FROM BELIEFS TO HUMANITY

SHIFTING FROM CLOSED TO OPEN

22 33

11

44

55

DIGITALIZATION

GLOBALIZATION

FUTURIZATION

SHIFTING FROM ROUND TO FLAT

SHIFTING FROM SILO-INDUSTRY TO

SEAMLESS INDUSTRY

SHIFTING FROM INFORMATION-AGE TO PARTICIPATION-AGE


COMPETITIVE LANDSCAPE HAS TURNED INTO EITHER:

(1) GOOD LIKE TRADITIONAL BOXING GAME

(2) BAD LIKE THAI BOXING, WHERE YOU CAN ACTUALLY KICK YOUR OPPONENTS VITAL AREA

(3) UGLY LIKE AMERICAN WRESTLING , WHERE YOU CAN

FIGHT OUTSIDE THE RING

CUSTOMERS ARE MORE DYNAMIC .THE Y CAN TURN

OUT TO BE:(1) ACTIVE HIGHLY LOYAL,

STRONGEST ADVOCATE(2) PASSIVE GENERALLY

SATISFY , NEVER SAY A WORD ABOUT YOUR BRAND TO

OTHERS(3) REBEL TERRORIZE YOUR BRAND EASILY AND SPREAD NEGATIVE THINGS ABOUT

YOU

IN ORDER TO OUTSMART THE COMPETITOR AND BETTER MANAGE THE CHANGING CUSTOMER BEHAVIOR, IT IS ESSENTIAL TO PLAY A SMARTER MARKETING GAME,

CONTINOUSLY SENSITIVE TOWARDS THE CHANGE, AND CONDUCT BUSINESS WITH PRINCIPLES

COMPETITIVE SETTING CUSTOMER TREND

COMPANY

CHANGE

FROM VERTICAL TO HORIZONTAL, FROM TOP -DOWN TO BOTTOM-UP

MARKETING IS NOW HORIZONTAL !!!


4C LANDSCAPE 5C GLOBOSPHERE

THE MARKETING LANDSCAPE IS NO LONGER VIEWED

FROM A TOP-DOWN PERSPECTIVE (4C) BUT RATHER

SEEN AS A LEVELLED PLAYING GROUND (5C)


SOME OF THE MOST POWERFUL CHANGE

AGENTS IN THE WORLD TODAYTECHNOLOGISTS -

STEVE JOBS POLITICIANS

BARRACK OBAMAECONOMIST

WARREN BUFFETTSOCIOCULTURALIST

BONO

AND ALL

OF US


GADGETS AND APPLICATIONS THAT WE USE AS THE

CONNECTOR TO THE WORLD TODAY


HOW DO WE ANSWER

THESE CHALLENGES?


There are 3 types of company in todays landscape

CONNECTED CATALYSED CIVILIZED

IQ EQ SQ

SURVIVE SENSING SUSTAINABLE

1.0 2.0 3.0


CONNECTING WITH THE OTHER 3C (CHANGE AGENTS, COMPETITOR, AND

CUSTOMERS) TO SURVIVE THE MARKET COMPETITON

OFF-LINE

CONNECTION

OFF

+

ON CONNECTION

OFF

+

ALWAYS ON

CONNECTION

TRADITIONAL

MEDIA

WEB 1.0 WEB 2.0

P

L

A

T

F

O

R

M

1.0


CATALYSED BY SENSING (LISTEN, RESPOND, AND JOIN) THE OTHER 3Cs2.0

COMPANY

CHANGE

AGENTSCOMPETITOR CUSTOMER

FORMAL LEADERS

& SOCIAL ACTIVIST

ECONOMIST &

BANKERS

INDUSTRY PLAYERS

& MARKET MAKER

POLICY MAKERS &

GRASS ROOT

LEADERS

RESEARCHERS &

DEVELOPERS

CREATIVE

SOLUTION

COOPETITON

PLATFORM

COLLECTIVE WISDOM

Wisdom

Knowledge

Information

Data

Noise

FINDING OUT

COMPLEMENTARY

OPPORTUNITIES AND

COOPERATE

WITHOUT BEING TOO

MUCH OF A SAINT

FINDING OUT

COMPETITIVE

THREATS AND

COMPETE WITHOUT

KILLING AN

OPPOSITION


CIVILIZING THE COMPANY TO BE SUSTAINABLE3.0

Making a DIFFERENCE

CLARIFYING

YOUR

PERSONACODING

YOUR DNA

CHARACTER

WITH CHARISMA

WHAT IS YOUR

COLOR?

WHAT IS YOUR AUTHENTICITY?

WHAT IS YOUR AURA?


SO, WHATS NEXT IN

MARKETING?


FROM LEGACY

TO NEW WAVE


FROM LEGACY TO NEW WAVE

CONNECTED CATALYSEDCIVILIZED

CLARIFYING YOUR PERSONA

CODING YOUR DNA

CHARACTER WITH CHARISMA

WHAT IS YOUR

COLOR?

WHAT IS YOUR AUTHENTICITY?

WHAT IS YOUR AURA?


12 Cs OF NEW WAVE MARKETING9 ELEMENTS OF LEGACY MARKETING

CARINGSERVICE

CONFIRMATIONTARGETING

CROWD COMBO

CO-CREATION

CURRENCY

COMMUNAL ACTIVATION

CONVERSATION

MARKETING MIX

PRODUCT

PRICE

PLACE

PROMOTION

CODIFICATIONDIFFERENTIATION

CLARIFICATIONPOSITIONING

COLLABORATIONPROCESS

CHARACTER BRAND

COMMERCIALIZATIONSELLING

COMMUNITIZATIONSEGMENTATION

FROM LEGACY TO NEW WAVE


THREE STEPS OF NEW-WAVE MARKETING

Targeting theCUSTOMER

SELLINGThe Marketing-Mix

Processing TheSERVICE

(mind-share)STRATEGY

(market-share)TACTIC

Differentiation

'CORE' TACTIC

ProcessVALUE

'ENABLER'

1 2 3 4 5 6

7

8

9

VALUE(heart-share)

Explore Engage

Execute

Positioning'BEING'

STRATEGY

PROCESSING THESERVICE

TARGETING THECUSTOMER

SELLING THEMARKETING -MIX

COMMUNITIZINGTHE CROWD

COMMERCIALIZINGTHE CROWD COMBO

CARING FORCOLLABORATION

1 2

3

LOW-BUDGET, HIGH-IMPACT MARKETING TO WIN MIND-

SHARELOW-BUDGET, HIGH-IMPACT

MARKETING TO WIN MARKET-SHARE

LOW-BUDGET, HIGH-IMPACT MARKETING TO

WIN HEART-SHARE


THE BIG KEYWORDS FOR YOU TO TAG IN THE WORLD OF NEW WAVE

MARKETING

1.MOBILE-BASED INTERACTION

2.MASS COLLABORATION

3. SOCIAL MEDIA CONNECTION (offline

and online)


MOBILE INTERACTIVITY.

BBC WORLD NOW IN AMERICA EXAMPLE1


MASS COLLABORATION

MOUNTAIN DEW DEW-MOCRACY EXAMPLE2


MASS COLLABORATION

P&G CONNECT AND DEVELOP EXAMPLE2


MASS COLLABORATION

DIRECT TO DELL EXAMPLE2 POST > PROMOTE > DISCUSS -> SEE


MASS COLLABORATION

MY STARBUCKS IDEA EXAMPLE2


MASS COLLABORATION

INNOCENTIVE THE EBAY FOR GREAT IDEAS, THE MARKET PLACE WHERE PROBLEM

SEEKERS AND PROBLEM SOLVERS MEET.

2


SOCIAL MEDIA CONNECTION

Online Example: blog.airasia.com a blog for customers to express their experience

towards the brand.

3



Online Example: FASTLANE BLOG by GM, one of the most popular corporate blogsite3



Offline Example: Yamaha touring activities 3


Thank You !

New Wave Marketing

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