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It\u2019s been more than half a century since Philip Kotler first published his principles of marketing, which has defined the practice of millions of professionals worldwide ever since. \u00a0It\u2019s no stretch to say that before Kotler, there was no marketing profession.<\/p>\n
What made Kotler different than what came before is that he took insights from other fields, such as economics, social science and analytics and applied them to the marketing arena. \u00a0Although it seems basic now, it was groundbreaking then.<\/p>\n
Today technology is transforming marketing once again. \u00a0Although up to this point, most of the impact has been tactical, over the next decade or so there will be a major strategic transformation. This, of course, will be a much harder task because we will not only have to change what we do, but how we think and many will be left behind. \u00a0Here\u2019s a short guide.<\/p>\n
In the past, promotion dominated the field of marketing. \u00a0While evaluating opportunities was important, advertising, especially on TV, was what drove budgets and, as a result, strategic thinking. Not surprisingly, coming up with the right message and broadcasting to the right people at the right time was of paramount importance.<\/p>\n
Today, however, digital technology has enabled us to retarget consumers when they respond to a message and that has changed marketing forever. \u00a0In effect, we must make the shift from grabbing attention to holding attention.<\/p>\n
That means that brands will have to learn to be more like publishers\u00a0and learn content skills. \u00a0It also means that marketers will have to create a genuine value exchange\u00a0rather than just coming up with catchy ad slogans and price promotions. \u00a0Like it or not, we\u2019ve entered a post-promotional paradigm.<\/p>\n
In the past, we focused on rational benefits to entice consumers to support our brands. \u00a0Show that you are better in a clear, rational way and, so the thinking went, you could build a loyal following.<\/p>\n
However, we\u2019re not rational, calculating machines, but emotional driven creatures who are subject to an whole array of cognitive biases and new research has changed the psychology of marketing. For example, research shows\u00a0that while a price promotion may spurs sales, it lessens enjoyment and can hurt the brand long-term.<\/p>\n
In effect, it\u2019s become clear that we are not operating in a rational economy, but a passion economy, where a sense of purpose determines how people will act and brand associations, rather than brand attributes, determine marketing success. \u00a0So we\u2019ll have to learn to focus on more than share of market, but also share of synapse.<\/p>\n
Marketing historically has been about big ideas. \u00a0The problem is that once you have a big meeting amongst a bunch of big egos, each of which has his own big idea, the ideas tend to get progressively smaller until ultimately the next marketing plan ends up being a tweaked version of the last one.<\/p>\n
The reason this has always been the case is that big ideas are risky. \u00a0Sure, by coming up with a new way of thinking you could end up a hero, but you could also end up fired. \u00a0Marketers, much like everybody else, are motivated less by the sublime and more by the mundane aspects of life, like paying the mortgage, braces for the kids and so on.<\/p>\n
Yet machine learning technology\u00a0is enabling a new approach in the form of marketing simulations. Rather than argue the merits of a new approach in stale conference rooms, we can test them in simulated environments built from real world data. \u00a0As the web of things\u00a0becomes more pervasive, this will truly allow us to co-create with our consumers.<\/p>\n
In other words, by increasing our failures in the virtual world, we can improve our performance in the real one.<\/p>\n
In the past, businesses focused on developing proprietary value chains. As they became more successful and added scale, their competitive advantage would grow in terms of quality, efficiency and brand equity. \u00a0Brands were, in effect, just another asset to be accounted for and then leveraged.<\/p>\n
Digital technology is forcing marketers to rethink their historical approach to marketing. \u00a0We are no longer operating in a scale economy, but in a semantic economy\u00a0where the connectivity drives value and brands are becoming open platforms and ecosystems\u00a0rather than assets to be closed off and protected.<\/p>\n
This has already become clear in technology products, where API\u2019s\u00a0and SDK\u2019s have become standard, but as the world of bits invades the world of atoms, all marketers will need to connect in order to survive.<\/p>\n
So, while Kotler reconciled marketing with the standards of business, over the next decade we will have to reconcile marketing with the standards of technology and, as Martin Heidegger once argued, technology isn\u2019t important because of what it builds, but because of what it uncovers.<\/p>","protected":false},"excerpt":{"rendered":"
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