Marketing 3.0: From Products to Customers to the Human Spirit, co-authored by Philip Kotler, Hermawan Kartajaya, and Iwan Setiawan, was published by John Wiley & Sons in May 2010. The book describes how marketing is moving beyond winning customer minds and hearts into winning the human spirit. The authors illustrate their thesis with organizations that are moving in this direction. The book is translated into 21 non-English languages across Europe, South America, and Asia, showing its worldwide acceptance. Moreover, the concept has been introduced through seminars around the world. As a follow up, the authors have built the Museum of Marketing 3.0 in Ubud, Bali-Indonesia. The museum was launched on May 27, 2011.
The idea to build the museum was coined exactly two years prior to the launch date, when Hermawan Kartajaya proposed the concept to Philip Kotler, with whom he wrote five books. Bali, in which Ubud is a spiritual center, has a philosophy Tri Hita Karana: Balancing among God, People and Nature (vertical and horizontal spiritualism). This is aligned with the objective of the book: to honor the role of the human spirit in furthering human activities.
An Ubud Prince who is a marketing enthusiast, Tjokorda Gde Raka Sukawati, along with the other two princes (Tjokorda Gde Putra Sukawati and Tjokorda Gde Oka Artha Ardana Sukawati) agreed to sponsor the building of the museum in the prestigious museum complex owned by the Royal House of Ubud. All the interiors also come from donations.
The first marketing museum of its kind in the world, it will feature organizations and marketers that build their mission, vision, and values around the idea of serving customer as a whole human. The museum aims to portray sustainable business practices beyond regulatory compliance with a hope to inspire other companies to follow suit.
Over the years, marketing has mutated through three stages that we call Marketing 1.0, 2.0, and 3.0. Many of today’s marketers still practice marketing 1.0, some practice marketing 2.0, and a few are moving into Marketing 3.0. The greatest opportunities will come to marketers practicing 3.0.
Long ago during the industrial age—where the core technology was industrial machinery—marketing was about selling the factory’s output of products to all who would buy them. The products were pretty basic and were designed to serve a mass market. The goal was to standardize and scale up to bring about the lowest possible costs of production so that these goods could be priced lower and made more affordable to more buyers. Henry Ford’s model T automobile epitomized this thinking when he declared “Any consumer can have a car painted any color that he wants so long as it is black.” This was Marketing 1.0 or the product-centric era.
Marketing 2.0 came out in today’s information age—where the core is information technology. The job of marketing is no longer that simple. Consumers are well informed and can compare several value offerings of similar products. The product value is defined by the consumer. Consumers differ greatly in their preferences. The marketer must segment the market and prepare a superior product for a specific target market. The golden rule of “consumer is king” works well for most companies. Consumers are also better off because their needs and wants are well addressed. They are presented with a wide range of functional characteristics and alternatives and also are appealed to on a more emotional basis. Marketers in this period try to touch the consumer’s mind and heart. Unfortunately, the consumer-centric approach implicitly assumes the view that consumers are passive targets of marketing campaign. This is the view in Marketing 2.0 or the customer-oriented era.
Now, we are witnessing the rise of Marketing 3.0 or the values-driven era. Instead of people being treated as consumers, they are treated as whole human beings with mind, heart, and spirit. Consumers in Marketing 3.0 look for solutions to their anxieties to make the globalized world a better place. In the world full of confusion, they search for companies that address their deepest needs for social, economic, and environmental justice in their mission, vision, and values. They look for not only functional and emotional but also human spirit fulfillment in the products and services they choose.
Like Marketing 2.0 customer-oriented marketing, Marketing 3.0 also aims to satisfy the consumers. However, companies practicing Marketing 3.0 have bigger mission, vision, and values to contribute to the world and provide solutions to problems in the society. Marketing 3.0 lifts the concept of marketing into the area of human aspirations, values and spirit. Marketing 3.0 believes that consumers are complete human beings whose other needs and hopes should never be neglected. Therefore, Marketing 3.0 complements emotional marketing with human spirit marketing.
In times of the global economic crisis, Marketing 3.0 gains more relevance to the lives of the consumers as they are impacted more by rapid social, economic, and environmental change and turbulence. Diseases become pandemics, poverty increases, and environmental destruction is under way. Companies practicing Marketing 3.0 provide answers and hope to such issues and therefore touch consumers at a higher level. In Marketing 3.0, values addressed by a company are the company’s differentiation. In turbulent times, this differentiation is arguably a strong one.