This post is about Marketing 5.0 by Philip Kotler, Hermawan Kartajaya and Iwan Setiawan. It's not a summary, but more about concepts and reflection on parts that I found especially interesting.
I was originally waiting for the Japanese translated version to be published, but that normally takes at least 6 months. I was already excited for the father of modern marketing's new book, so I read the e-book in Rakuten kobo this week.
What is Marketing 5.0
Marketing 5.0 is based on both Marketing 3.0's human-centric approach and Marketing 4.0's technology-driven approach. If you've read Marketing 3.0 and 4.0, the previous themes will be familiar.
The main theme of marketing 5.0 is about marketing in the digital age, specifically with AI innovation. We can now use predictive models, optimization, and automation for digital marketing.
When businesses consider digital transformation of their services, they should assess whether their customer base is ready, in terms of both access and willingness to adopt new technology. If they might be hesitant, you can consider using incentives. Positive incentives could be some immediate benefit such as cash back or discounts. You could also consider negative incentives such as additional cost or wait time, or making the offline version unavailable altogether.
Intersection of Psychology and Tech
Marketing 5.0 discusses several main themes, such as generation gap and marketing in the new AI-powered digital age. The part that I found most interesting is actually about the intersection of marketing psychology and technology. Maybe because I'm already quite familiar with the concept of AI for marketing, which was the main concept of this book, but I didn't find it particularly eye opening.
We are social creatures, relating to others' life stories as we navigate our own. It's natural to compare ourselves and imitate people in our social circle - the people closest to us are the strongest influencers. These days, people constantly check social media, and that could be a subconscious motivation to live a more exciting life and win impressive accomplishments.
Humans have a natural desire to control their environment, and we get a sense of happiness from perceived control. So even if you're confident that you are already using technology to give the best customer experience, you can consider adding an element of choice.
Also, most people don't fully understand how AI and machine learning algorithms work. AI gets subconsciously perceived as something we cannot control, making it harder to overcome the psychological barrier to adopting new technology. This is especially true for systems that require a lot of trust, such as autonomous vehicles and medical treatment. Due to the 100th monkey effect, we should eventually adopt these technologies, but full integration could take decades.
Finally, Marketing 5.0 says that there's a divide in how people think about their personal data being used for digital advertising. Some people see it as a benefit because their digital activity will be more personalized. Others see it as an invasion of privacy used for capital gain.
Given the recent news and reactions to Apple's iOS 14 update, it seems to me that the latter is the majority.