New Wave Marketing – The Modern Marketing Principles
My mentor and friend, Pak Hermawan Kartajaya, is the Asean’s Marketing Guru and the Pride of Indonesia. Since late August of this year, he has been writing about “The New Wave Marketing Series 100” at Kompass.com (Indonesia Online Media). It is also a great joy to hear that he will co-author with Philip Kotler on a new book with the same title “New Wave Marketing”.
I am sure anyone in the marketing world, especially those that has taken “marketing” in their higher education, will remember the thick blue book of “Principles of Marketing” by Philip Kotler. ( Of course, there has been many new editions of the book that may be of different colors now.) So there is no need of me to further the introduction of the world famous “Father of Modern Marketing for International Market”
So What’s “New Wave Marketing”?
According to Kartajaya, the famous nine principles of marketing, as we all have learned to know and applied in our marketing strategies, need to be revised and adapt to the modern world today and these new principles will be known as New Wave Marketing. Whether or not they will actually replaced the old terms from now on has not been announced.
Just to point out, The nine principles of marketing by Kotler also referred as “Legacy Marketing” are:
5. Marketing-Mix (Product, Price, Place, Promotion),
12 C’s of “New Wave Marketing”
The new elements or principles has now been termed the 12 C’s of “New Wave Marketing” and they are:
5. Crowd-Combo (Co-Creation, Currency, Communal Activation, Conversation),
The reason why I am posting and sharing this with you is that Internet Marketing Strategies are by and large derived from Marketing Strategies as we have learned and apply in the offline world. The nine principles of Marketing by Philip Kotler are commonly applied to all businesses in their marketing strategies.
These nine principles have been widely applied in internet marketing by many businesses and internet marketers. Since these nine principles of marketing will soon be revised to be “NEW WAVE MARKETING“, it is important for us to be aware of these new principles and apply the New Wave Marketing to online businesses and internet marketing in general.
The evolution of New Wave Marketing is actually the result of the development of internet. And many large successful businesses, who have applied it, has become highly successful including online companies such as FACEBOOK, eBay, Apple and Amazon!
You will be able to understand the new terms better with the illustration below and you will see that the New Wave Marketing is actually a replacement of terms of the Nine Principles of Marketing.
- Segmentation => Communitization
- Targeting => Confirming
- Positioning => Clarifying
- Differentiation => Coding
- Marketing-Mix => Crowd-Combo
- Product => Co-Creation
- Price => Currency
- Place =>Communal Activation
- Promotion => Conversation
- Selling => Commercialization
- Brand => Character
- Service => Caring
- Process => Collaboration
These new terms described the principles of Marketing better than the previous terms and make more sense in the new world today. The changes in information technology especially the internet has revolutionized how human interact with one another, creating more opportunities as well as threats to all businesses. Just like the 9 principles of Marketing that needs adaption to the new world, we too need to adapt to the New Wave Marketing and apply them to our business to face this new world.
“We cannot Live Without Changes”
“It is not the Strongest that will Survive, BUT the Most Adaptable” -Jong Yong Yun (CEO Samsung)
These New Wave Marketing principles, when applied, allows companies to reap huge benefits with sustainable competitive advantage over others.
As an example, Communitization is the first key of New Wave Marketing. Communities can easily be found on the internet as Online Communities have flourished tremendously over the past years. This can be seen in forums and social networking sites where users created their own community. With communitization principle in mind, marketers can now explore and research potential communities to market their business to.
Kartajaya explains that Communitization is much more effective than Segmentation as markets will not only be based on geography, demography or social backgrounds in traditional segmentation. BUT, markets will now be based on groups of people with the same passion or interest from all walks of life from anywhere around the world as communities.
If a company can apply communitization and gain the trust and love of communities, then these communities will volunteerily help market the company and defend the company from critisims coming from outside the community.
Marketers need to be aware of these new principles, gain better understanding and apply these New Wave Marketing in order to reap bigger benefits.
The 100 essays of New Wave Marketing are still developing at Kompas.com as I write this post. However, they are written in Bahasa Indonesia, you will need to wait for the new book with Kotler to gain deeper understanding about this New Wave.
Applying New Wave Marketing Principles
To show an example, Kartajaya instantly apply New Wave Marketing strategies in launching his book and conference by organizing a New Wave Marketing Competition.
There are three categories to the competition. Participants /Contestants will help promote “New Wave Marketing” and “Markplus” online by submitting either
- a Picture to Flickr,
- a Video to Youtube and/or
- a Story to their personal blogs.