The Evolution of Brand Storytelling in the Digital Age
June 25, 2024
As time goes by, it’s not only technology that has changed but also marketing, which is undoubtedly already familiar to those of you who have online or offline businesses. Because of that, now comes Marketing 5.0, which is not just a term.
Running a business in the digital age is tricky. Yet, the marketing process is getting more modern thanks to Marketing 5.0. It is challenging because the development and sustainability of this business approach not fully control by technology, so it requires good human management.
Before discussing this topic in more detail, do you know the difference between this Marketing and previous marketing approaches? Marketing 01 to Marketing 3.0 is the era of traditional marketing. Meanwhile, Marketing 4.0 initiated digital marketing that combines online and offline interactions between companies and customers. Meanwhile, Marketing 5.0 balances the role of technology with human values. For more details, see the development of a business marketing approach that was once popular
1. Marketing 1.0: Entrepreneurs produce as many goods as possible.
2.Marketing 2.0: Entrepreneurs are starting to pay attention to consumers, but still see them as mere objects.
3. Marketing 3.0: Entrepreneurs pay attention to consumers and also the vision, mission and values of marketing.
4. Marketing 4.0: Entrepreneurs emphasize digital marketing by combining online and offline marketing.
5. Marketing 5.0: A marketing strategy combining technology with New Customer Experience (CX) that occurs at every customer journey stage.
Marketing 5.0 achieves its preparation for the future by providing a middle ground between the role of technology and human values, categorizing it as an upgraded version.
Then why is the chosen time future? The use of gadgets is now considered quite vital in everyday life. Humans are looking for the right technology to help work: marketing. As a result, Marketing 5.0 focuses on creating a customer experience through technology.
Looking back, marketing carried out by several large companies and individuals tends to be by word of mouth, brochures, and other traditional methods. Thanks to the latest technology, you only need to press a button on your cellphone to do marketing.
The implementation of Marketing 5.0 mimics human activity in creating, communicating, delivering, and enhancing customer journey value. The successful application of this approach depends on a balanced symbiosis between human and computer intelligence. In addition, in practice, several elements also support the implementation of Marketing 5.0. Check the explanation below.
Elements of Marketing 5.0 that collect and analyze big data from internal and external sources are known as data-driven marketing. The data you get enables the building of a data ecosystem to drive and optimize marketing decisions. With this principle, Marketing 5.0 elements rely on data to make decisions.
In addition to data-driven marketing, another essential element of Marketing 5.0 is agile marketing, which refers to using team tactical strategies in conceptualizing, designing, developing, and validating products and marketing campaigns with the right target. By mastering these elements, you can face dynamic market changes.
In predictive marketing, selecting possible marketing strategies and tactics is added by applying data science and analytics. In addition to big data, Marketing 5.0 elements also use data mining, statistical modelling, artificial intelligence or machine learning, and some other processes to develop accurate forecasts of customer behaviour.
Contextual marketing refers to the activities of identifying, profiling and facilitating customers with personalized interactions by utilizing sensors and digital interfaces in physical spaces. This Element of Marketing 5.0 allows marketers to execute one-to-one marketing in real-time, depending on customer context.
Element of Marketing 5.0 is the use of digital technology to increase marketer productivity in dealing with customers with technology miming humans, for example chatbots and virtual assistants. This element is the key element ensuring marketers combine the speed and convenience of digital interfaces with human empathy.
Talking about the reasonably rapid movement of Marketing 5.0, there are five trends that have contributed to it, starting from the number of digital-savvy generations, positive and negative impacts of digitalization, increasingly sophisticated technological developments, a symbiosis between humans and technology to the adoption of a phygital lifestyle, this lifestyle utilizes digital technology to enrich the user experience and provide convenience in activities.
In fact, this marketing gave birth to many new terms, namely Next Tech and New CX (Customer Experience). In this era, using technology for the benefit of humans helps optimize business.
Next Tech or bionics refers to synchronization between technology and humans. In this concept, technology tries to imitate human activities, such as ways of thinking, making decisions, and other daily activities. A familiar example is artificial intelligence technology .
Furthermore, there is also Natural Language Processing (NLP) technology which is capable of replicating human communication skills, which are often unstructured. It doesn’t stop there, human sensing abilities give birth to sensor tech, the ability to move with robotics, the ability to imagine with mixed reality, and the ability to connect with the Internet of Things (IoT) and Blockchain.
If Next Tech focuses on technological developments, New CX discusses consumer footprints at each 5A stage, namely Aware, Appeal, Ask, Act, and Advocate, which can move between offline and online channels. For more details, see the following explanation.
At first glance, this concept resembles basic marketing models such as the marketing funnel and the AIDA marketing model. The difference is, Marketing 5.0 combines squeeze technology with a human touch.
Marketing 5.0 is dissected more in-depth in “Marketing 5.0”, a book by the Founder and Chairman of Markplus Inc., Hermawan Kartajaya, Iwan Setiawan, and Philip Kotler. This book was featured on Soundview’s Best Business Books of 2021 list and was published in 15 languages within eight months of the first printing. The book formulates Marketing 5.0 in the following form.
Marketing 5.0 = New Tech x New CX
This means that the combination of Next Tech and New CX results in a more efficient customer experience so that your business can offer more value to consumers. The key lies in the human ability to outperform technology. As is known, technology thinks by reading human behaviour and routines. On the other hand, humans possess higher levels of creativity and thought than robots.
Therefore, separating routine work within the company is a good idea. There’s nothing wrong with adopting the Marketing 5.0 concept for jobs that machines or robots can handle. On the other hand, jobs that require thinking, creativity, and supervision still need to be left to humans.
Contextual Marketing is vital in today’s digital era because consumers are getting more intelligent and selective in choosing the products or services they buy. In contextual marketing, advertising messages must be relevant to the context and needs of consumers to increase engagement and marketing effectiveness.
The following are some examples of contextual marketing that companies have used successfully:
The transition from Marketing 4.0 to Marketing 5.0 is relatively fast. In its application, Marketing 5.0 technology combines technology and people to make work easier. Regardless of the sophistication of technological science, humans still have to be in control because they need to be managed by humans. In short, technology collects data, but humans elaborate and make decisions.
In this way, Marketing 1.0 to Marketing 3.0, which still adopts the traditional marketing system, begins to develop into Marketing 4.0, then leads to Marketing 5.0.
Applying the Marketing 5.0 approach for companies requires automation by separating business processes related to routines and processes requiring direct supervision. For example, many companies use technology to enter data because it is more efficient. Even so, humans must still contribute to supervising and considering decisions to optimize work results.
Furthermore, the use of targeted technology makes it easier for marketers to get to know consumers more personally so that they can provide a touching experience to build trust and advocate for other consumers. Such as applying market research that benefits businesses in targeting targets precisely, even expanding marketing overseas on several different platforms simultaneously.
It continues that the combination of humans and machines works better than human expertise and machine prowess. As a result, it is not surprising that AI technology is now starting to develop into intelligence amplification (IA), which can increase human intelligence with computing technology. Regarding function, IA is useful for increasing human experience in the marketing process. The reason is marketing comes with two main roles, namely service (services) and sales (sales). Thanks to IA, machines create productivity, and people increase marketing effectiveness by building trust and flexibility.
In addition to the elements and their application, Marketing 5.0 also details a number of marketing challenges that may arise in the future, such as different attitudes and behaviors between generations that require special treatment from marketing.
We take the example of the Alpha Generation and some of the Z generation, who are eager to feel attracted to the brands they use. There are also generations Z and generations Y who rely on brand experiences. On the other hand, Generation X and Baby Boomers tend to rely on brands with a good reputation in the market. The existence of differences in each of these generations creates gaps that marketers need to understand.
Not only in terms of generations, but this challenge also creates consumers in different groups, for example, based on preferences, ideology, lifestyle and market segments. In the book “Marketing 5.0”, this is known as polarization. Marketers can create products and use content marketing related to consumer needs to minimise this issue.
No less important, technological progress comes complete with all the advantages and disadvantages. Technology helps build communication, create consumer experiences in terms of its use, and define individual desires from consumers.
On the other hand, technology is also likened to a double-edged knife where the presence of technology triggers concerns, for example security and privacy issues, mental problems due to excessive use of technology, hoax news, and many more.
Marketing 5.0 plays an important role in the efficiency and effectiveness of marketing in the digital era so as to create a more personalized customer experience. If you are interested in developing a business with the Marketing 5.0 approach , trust Melon Branding Agency. We can implement various marketing strategies, such as market research and data-driven marketing. For further information, don’t hesitate to contact us at hello@melonbranding.com or visit our Instagram page @melonbranding.
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