The Evolutionary Scroll of Marketing: From Marketing 1.0 to Marketing 4.0
Kotler divided marketing into 1.0, 2.0, 3.0 and the latest 4.0.
Marketing 1.0 is product-centric marketing in the industrial era, addressing the problem of how companies can achieve better transactions. Marketing at that time was to give all the products produced by the factory to those who could afford it. These products are usually relatively rudimentary and are produced to meet mass market needs. In this case, the company expands as much as possible, and the standardized products continue to reduce costs to form low prices to attract customers. The most typical example is the Ford Model T, which was only one color of the year – “No matter what color car you need, Ford only has black”.
Marketing 2.0 is consumer-oriented marketing, which not only requires functional differences in products, but also requires companies to appeal to consumers for emotion and image. Therefore, a large number of companies with brand as the core appeared at this stage. In this period, the golden rule for business success is “customer is God”, which needs to attract consumers by satisfying their specific needs. Just like Procter & Gamble, Unilever and other fast-moving consumer goods companies have developed thousands of different grades of daily chemical products to meet the needs of different people.
Marketing 3.0 is values-driven marketing. It restores consumers from “prey” captured by enterprises to “rich people”, which is a people-oriented marketing. Consumers are complete people with independent consciousness and feelings, and any of their needs and hopes cannot be ignored.
Marketing 4.0 is based on big data, community, and value marketing. Enterprises shift the center of marketing to how to actively interact with consumers, respect the values of consumers as the main body, and let consumers participate more in the creation of marketing value. . In the era of digital connection, insight into and meet the needs represented by these connection points and help customers realize their own value are the problems that Marketing 4.0 needs to face and solve. It is based on values, links, big data, community, and new generation analysis. based on technology.
Marketing 4.0 is a marketing method that combines online and offline interactions between enterprises and users. In the digital economy, it is not enough to rely solely on digital interactions, in fact, as the world becomes networked, offline interactions represent very different characteristics. Marketing 4.0 also combines style and substance. With the rapid evolution of technology, the flexibility and adaptability of a brand is important, but its physical characteristics are becoming more important. In an increasingly transparent world, authenticity is a company’s most valuable asset.
Understanding How People Shop: From 4A to 5A
In the era of Marketing 4.0, the purchasing path of consumers has also changed.
”AIDA” formula (AIDA) – attracting attention, inducing interest, stimulating desire, and promoting purchase, is one of the earliest widely used methods to describe the customer marketing model.
AIDA was created by sales and advertising pioneer E. St. Elmo Lewis and was first applied to advertising and sales. It’s a simple reminder and checklist tool to help advertisers design ads and help salespeople sell products. Like the 4P elements of marketing (products, pricing, channels, and promotions), AIDA has undergone many revisions and expansions.
Derek Rucker from the Kellogg School of Management revised the AIDA model, calling the new model the 4A: Know, Attitude, Behaviour, Repurchase. In the new model, interests and desires are integrated into attitudes, and a new link is added – repurchase. The revised model aims to follow up customer behavior after purchase, count customer retention, and regard repurchase as an important manifestation of customer loyalty.
However, in this era of interconnectivity, the original customer path cannot adapt to the changes brought about by connectivity, and the behavior path of customers purchasing products has changed again. The 4A customer buying behavior model also needs to evolve to the latest 5A model: Know, Attract, Ask, Act, and Advocate.
In the understanding stage, customers passively accept various product information from past experiences, marketing interactions, and other people’s experiences. This stage is the gate that prompts users to buy. Customers who have used a brand are more likely to remember or recognize the brand, and corporate advertisements and word-of-mouth from other users are also the main sources of brand recognition.
After learning about several brands, customers will process the known information into short-term memory or long-term memory, and then lock in a few favorite brands. This is the attraction phase, and brands with an element of wow are more likely to be remembered and more likely to stay on the customer’s wish list.
Driven by curiosity, customers often actively follow up on brands that appeal to them, learning more from family and friends, the media, and even directly from brands. This is the inquiry phase. Customers can get information from relatives and friends, and can also evaluate the quality of the brand by themselves.
Today, inquiry combines the online digital world with the offline real world. Customers can browse products in the store while searching for product information on their mobile phones. Due to the diversity of customer access information channels, companies must leave their presence in the more popular channels.
Action Once the
customer has confirmed enough information in the inquiry stage, it will move to the action stage (decision to buy). Keep in mind that the user behavior we expect is not limited to purchase behavior. After purchasing a specific product, customers interact more deeply with the brand through consumption, usage, and after-sales service. Brands need to keep customers engaged and make sure they have a good sense of ownership and user experience. When customers complain that there is a problem, the brand needs to pay attention in time and ensure that it is effectively resolved.
Over time, customers develop strong brand loyalty, which is reflected in retention, repurchase, and ultimately advocacy. This is the advocacy phase. Active brand advocates do not need others to ask, they will take the initiative to recommend, tell brand stories, and be brand evangelists. The triggers they need are inquiries and bad reviews, and when that happens, they feel obligated to protect their beloved brands. And because these people dare to recommend their favorite brands, they are naturally more likely to purchase products from these brands again in the future.
In fact, the stages in the 5A model are not strictly linear. For example, a customer may initially have no interest in a brand, but a recommendation from a friend may make him decide to buy. This means that customers skip the attraction link that generates likes and dislikes, and go directly from the understanding link to the enquiry link. On the other hand, many customers may skip the inquiry stage and buy the product impulsively based on the information obtained in the understanding and attracting stage.
In the case of rare and sought-after items, loyal followers need not necessarily be actual buyers. Tesla products, for example, have been enjoying promotion from non-buyers, meaning users skip the action link and go straight to the advocacy link. The new customer path does not have to be a fixed customer funnel structure, and the customer does not have to complete every stage of the 5A. Therefore, from understanding to advocacy, this road will also be appropriately lengthened or shortened according to the number of different customers in different links.
The new customer path may also be a spiral, with users returning to the previous link, forming a feedback loop. Customers asking questions may either add a new brand to the list or look for a more attractive brand. When customers encounter problems during use, they will ponder deeply, and then decide whether to continue to use or change brands. Due to the existence of this spiral path, the number of brands left in each stage of 5A will also fluctuate accordingly.
From Learning to Advocate: O Area (O3)
The ultimate goal of Marketing 4.0 is to make users change from understanding products to advocating them. In general, there are three main ways marketers can influence this. In the process of 5A, the customer’s decision is often influenced by self factors, other factors and external factors, we call this structure O area (O3) (see Figure 1).
External influences come from external factors, which are purposefully carried out by the brand through advertising or other marketing methods, and may also be the interaction of sales and customer service personnel with customers. From a brand perspective, external factors are still manageable.
The influence of others also comes from the external environment. Usually, the influence of others refers to the word of mouth of the product in the circle of relatives and friends, and may also come from the larger independent community of the user. For example, customers may be influenced by what they hear on social networking sites, such as by rating systems such as TripAdvisor (the world’s leading travel site that provides reviews and recommendations from travelers around the world) and Dianping . The influence of other influencers varies. Young people, women and netizens are the most influential groups, and the influence they bring is often the deciding factor for the final purchase of customers.
Self-influence comes from users themselves, from past brand interactions and experiences, personal evaluations of brands, and personal preferences for brands. Generally speaking, personal preferences (self) are influenced by brand word of mouth (others) and advertising (external).
In fact, each customer is generally affected by three types, although the proportions may vary. Some customers have distinct personal likes and dislikes and are not easily influenced by advertisements or friend recommendations; some customers rely heavily on other people’s recommendations, and some are willing to believe in advertisements. Despite the differences between individuals, today’s clients are still more dependent on the influence of others than self-influence and external influence. According to Nielsen’s research, 83% of respondents from 60 countries see family and friends as the most reliable “advertising”, and 66% care about what others say online.
In the 5A process, customers are vulnerable in both the inquiry and action stages. The inquiry phase is a great opportunity for marketers to increase brand likeability. In the action phase, brands that can provide customers with an excellent consumption and usage experience are always more favored.
O3 is also an effective tool for marketers to optimize their marketing strategies. If they can distinguish between external, others and self-influence, marketers can determine the focus of their work. When external influence is most important, marketing activities focus on interactive activities; when other people’s influence is most important, marketers should rely on community marketing activities; when self-influence is most important, marketing activities should focus on Provide a good after-sales service experience