MARKETING 3.0

Presented By:Chirag Patel (C005)Jigar Chaudhari (C016)Navin Chaudhari (C004)

The way to sustainable….

Can you count commercials?And now… they are constantly changing !!!

CHANGE

“Within five years, if you are run your

business in the same way as you do now, you

are going to be cut out of business.”

- Philip Kotler

Why Marketing 3.0 ?

So the…

MARKETING…. had to change

It’s all about our lives and our world !

Marketing 3.0

Old Philosophy:“What is good for business is good for society !”

New Philosophy:“What is good for society is good for business !”

Adoption of Marketing 3.0

Better Nutrition Traffic Safety

Reducing Solid Waste

Reducing Obesity Recycle Used Electronics

Staying Active

The Age of Participation and Collaborative Marketing

The Age of Globalization and Cultural Marketing

The Age of Creative Society and Spiritual Marketing

Marketing 3.0 : Collaborative, Cultural, Spiritual

The Stimulus

The Problem

The Solution

The Disciplines of Marketing

Today’s MarketingConcept

Future Marketing Concept

Product Management 4 P’s Co-creation

Customer Management STP Communitization

Brand Management Brand Building Character building

Co-creation• Innovation• Collaboration• Accumulation

PlatformIndividual Consumer

Consumer Feedback

CommunitizationConsumers can organize into communities that exist not to serve the business but to serve the members.

Pools strong belief and affiliation

Webs one-to-one

Hubs loyal fan base

Character Building

Authenticity that core differentiation.

Brand Touch point of mind, heart, spirit

Positioning Alerts consumer for authenticity

Differentiation Brand’s DNA reflects true integrity

Brand identity Positioning of brand

Brand integrity Fulfilling the promise – trust

Brand Image Acquiring consumers’ emotions

Shift to human spirit: The 3i Model

Solid Proof

Buying Decision

(Brand)Coca-Cola

Open Happiness “LIVE POSITIVELYTM ” Company Vision,

Sustainable Growth

(Positioning) (Differentiation)

Brand Integrity

3i

The 3i Model: Coca Cola

Shift to Values-Driven Marketing• To identify the anxieties and desires of the consumers to be able to target their minds, hearts, and spirits.• In the globalization paradox, they make their society and the world at large, a better an ideal place to live.

• Peter Drucker• Charles Handy

• Set of corporate priorities

• Picture of desirable future state

• Current and future CUSTOMER

• Current and future SHARE HOLDER

• Current and future EMPLOYEES

VALUE-BASED MATRIX MODEL (VBM)

MIND HEART SPIRIT

MISSION

To refresh the world...

To inspire moments of optimism and

happiness...

To create value and make a difference…

Nurture a

winning

network of

customers and

suppliers

Open Happiness

Live our values

LIVE POSITIVELY TM

VISION

- People

- Portfolio

- Partners

- Planet

- Profit

- Productivity

Economic value

of the satisfy

basic need

Maximizing return

to shareowner

while being

mindful of our

responsibilities

Sustainability

(GRI Report)

Sustainability

KPI

VALUE

Leadership, Collaboration, Integrity,

Accountability, Passion, Diversity, Quality

Be a highly

effective, lean

and fast-moving

organization

World’s 25 Best

Multinational

Workplaces 2013

Inspire

creativity,

passion,

optimism, fun

Values-based matrix model (VBM)

• Customer-centric:

Value based marketing is sometimes initiated because of external changes in customer

attitude.

E.g. Kraft Food

• Social Responsibility:

An organization’s corporate statement might expressive include value-based goals.

E.g. P & G has started Shiksha Abhiyaan to the rural children

• Business Alliances:

It helps to achieve value based objective. This is particularly effective when alliances

relates to delivering value to help communities.

E.g. TATA make alliances with DOCOMO to reach customers through communication.

• Customer Values:

In important part of developing value based strategy is discovering what customers

value for company.

The Goals of Values-Based Marketing

MISSION TO THE

CONSUMERS

VALUES TO THE

EMPLOYEES

VALUES TO THE

CHANNEL PARTNERS

VISION TO THE SHARE

HOLDERS

MISSION TO THE

CONSUMERS

Mission

“Cadbury means Quality”

CadburyAppleCoca Cola

“To make a contribution to

the world by making tools

for the mind that advance humankind”

• To refresh the world - in mind, body and spirit

• To inspire moments of optimism - through our brands

and actions

• To create value and make a difference everywhere we

engage

GOOD MISSION

Good Mission

Consumer Empowerment

Business as unusual

Story that moves people

Realizing

Creating Spreading

Amazone.com

• Provide the Biggest

Selection of Knowledge Delivered Conveniently

eBay

Google

• Make the world’s

information organized and accessible

• Transformation or Change • Consumer unconsciously accept

it as a part of its daily life• Human Spirit Marketing

Steve JobsTim cookHoward Schultz-Starbucks

ResourceConnectionContainerJourneyChangeTransformation

VALUES TO THE

EMPLOYEES

Shared values integrate employeesunder one corporate culture.

VALUES TO THE

CHANNEL PARTNERS

In marketing 3.0

• Collaborator• Cultural Change Agent• Creative Partners

Body shop :As imperative for growth emerged multi channel approach was adopted.Anita Roddick's was interested in people interested to make difference rather than people making profits.Women were more likely than men to share her same social and environmental values.(90%partners were women initially).

1. Single stage channel2. Multistage channel3. Territory based channel4. Integrated multichannel

stages.

Biggest issue in marketing is to access rural market.Socially responsible distribution is best modeled.

ITC: e-choupal: enables farmers to access information on weather and crop prices and sell their produce directly through consumers without middle men.Also choupal sagars concept of minimalls that sell products from consumer goods to health and financial services.

Hindustan UnileversEmpower rural Women ”Shakti Amma”

Consumer as Channel Partner

VISION TO THE

SHARE-HOLDERS

Profitability

Return-ability

Sustainability

long term GoalImproveShareholder Value

Short term Goal

Creating aCompetitive Advantage.

ImprovedCost Productivity

HigherCorporate Brand Value

Higher Revenue fromNew Market Opportunities

Marketing to the Post Growth Market

Little or No growth

Transformation85% US

Consumer

93% UK consumer

Creating Socio-Cultural Transformation

Identify Socio-Cultural Challenges

Select TargetConstituents

OfferTransformational

Solution

• Primary focus on Entertainment

Obesity Children Better for you

Creating Growth in Emerging Market

Bottom of Pyramid Diamond

< $ 1,500

$1,500 - $ 20,00

> $ 20,000

$ 1,500

Three force

Blend of Excess Supply

Access of Technology to Rural Market

Government Policy

Four Requirements

Effective

Huge scale

Efficient

Solutions must be enduring for generations

Shakti Amma

Effective

Huge scale

Efficient

Solutions must be enduring for generations• 14 State• 1,00,000 Village• 50,000 women

• Its job-creating impact

• Create better living condition

• Involve the community

Expands Disposable Income

Stretches Disposable Income

Increases Disposable Income

Social Business Enterprise (SBE)

• By providing goods & services at lower price

• By providing goods & services previously not available

Marketing Model of SBE

Elements ofMarketing

Social Business EnterpriseBusiness Model

Segmentation Bottom of the Pyramid

Targeting Targeting High Volume Communities

Positioning Social Business Enterprise

Differentiation Social Entrepreneurship

Marketing Mix

Product Accessible for Low-Income Customers

Price Affordable

Promotion Word-of-Mouth

Place Community Distribution

Love Your Customers, Respect Your Competitors

Be Sensitive To Change, Be Ready To Transform

Guard Your Name, Be Clear About Who You Are

Get Your Customers, Keep And Grow them

Whatever Your Business, It Is a Service Business

Learnings

Customers are Diverse; Go First To Those Who Can Benefit Most From You

Always Offer a Good Package at a Fair PriceGlobal Segment Global products and features at higher price

Global quality but with local features at slightly lower prices

Glocal Segment

Local Segment Local products with local features at local prices

Bottom-of-the-pyramid segment Buy only the cheapest products available

Shop Houses in Shri Lanka

Always Make Yourself Available, Spread The Good NewsAnnapurna Iodized Salt in Ghana

Always Refine Your Business Process In Terms of Quality, Cost and Delivery

Gather Relevant Information, But Use Wisdom in Making Your Final Decision

• Disney Consumer products: Marketing Nutrition to children, David E. Bell and Laura Winig,HBR article-2009.

• Shaping The Future:solving Social Problems through Business Strateg y; Pathways toSustainable Value Creation in 2020, Based on research by McKinsey & Company, CECParticle.

• Corporate Social Responsibility – Towards a Sustainable Future ; A White Paper; KPMG inIndia.

References

• Volunteering for Impact, Best Practices in International Corporate Volunteering, Greg Hills and Adeeb Mahmud, September 2007.

• http://gpah.bsr.org/en/case-studies/view/new-business-models-to-increase-access-in-developing-countries

• http://gpah.bsr.org/en/case-studies/view/base-of-the-pyramid-innovation-project

• http://www.malaria.novartis.com/innovation/sms-for-life/

• http://www.unilever.com/images/es-Fortified-foods-improve-health-in-Ghana_tcm13-387429.pdf