By : Iwan Setiawan
(Engagement Manager, MarkPlus Consulting Recipient of AMF-Kellogg Scholarship Spo)


Marketeers July 2010

From decade to decade, marketing has evolved through three stages. Most marketers today are still practicing Marketing 1.0, some have started to apply Marketing 2.0, and only a small number of marketers are practicing Marketing 3.0. Little do we know that the greatest opportunities lie in abundance for those who practice Marketing 3.0.

Back in the years, in the industrial era – where the main technology is the machinery industry – marketing is merely about selling products from the factory to anyone who wants to buy it. The products are usually simple and are designed to serve the market’s needs as a whole. A growing concern at that time was the standardization and scaling of products to lower production cost in order to sell the products with a lower price to make it available for buyers. A famous quote from Henry Ford explains that in this era, "Any customer can have a car painted any color that he wants so long as it is black." This is Marketing 1.0 or the product-centric era.

Marketing 2.0 emerged in the information age, where the main technology is the information technology. The role of marketing is no longer as simple as before. Consumers are more intelligent and are able to compare similar products that are offered. The value of a product is determined by the consumers. Marketers in this era need to segment the market and develop better products for the specific target market. The concept that states, "Customer is King", is practiced quite well here. In the end, consumers are increasingly given the benefits, because their needs and wants are well satisfied. They are able to choose from the products’ various alternatives and functional characteristics. Marketers in this era are the ones who put the effort to touch the consumers’ minds and hearts. Unfortunately, this customer-centric approach indirectly assumes that consumers are passive objects of a marketing campaign. This is called Marketing 2.0, or the customer-oriented era.

We are now witnessing the development of Marketing 3.0 or an era where everything is values-driven. Marketers are not only treating consumers as individuals, but they also approach consumers as human beings with a mind, heart, and spirit. More and more consumers are beginning to seek solutions to their concerns regarding the ever changing world in facing globalization. In a world that is full of confusion, consumers look for companies that are able to answer their anxieties and desires in social justice, economics, and environment with their vision, mission, and values. It is no longer enough to be merely functional and emotionally satisfied. Marketers need to fulfill consumers’ spiritual needs as human beings in the selection of their daily products and services.

A full version of this article in Bahasa Indonesia can be read in our July 2010 edition of Marketeers.