MARKETING 6.0 HAS ARRIVED
Marketing is constantly evolving, with new changes happening every day. Philip Kotler and his colleagues are exploring these changes in their “Marketing X.0” series. The first book, Marketing 3.0, introduced the idea that marketing should cater to the human spirit. Customers now seek more than just functionality and emotional satisfaction; they also look for a deeper, spiritual connection with brands.
This shift led companies like Procter & Gamble (P&G) to include themes of diversity, equity, and inclusion in their campaigns. Instead of just selling products, companies began aiming to make a positive social impact. For instance, P&G’s Gillette brand launched a campaign challenging traditional views of masculinity, demonstrating P&G’s commitment to diversity. Unilever’s Dove brand also contributed with its “Real Beauty” campaign.
With Marketing 4.0, the focus moved to the digital world. Digital marketing strategies became crucial, especially during the pandemic, which highlighted the importance of integrating online and offline channels. Content marketing and omnichannel strategies became key parts of the customer journey.
Then came Marketing 5.0, which saw the rise of artificial intelligence (AI) in marketing. AI helped enhance customer relationships by personalizing experiences based on individual preferences. For example, Frito-Lay used AI to analyze social media and online reviews to create new flavors and products.
Now, Kotler and his colleagues say we have entered a new era with Marketing 6.0. This era caters to Generation Z and Alpha, who expect interactive and immersive brand experiences. Key elements of this era include short videos, augmented reality (AR), and virtual reality (VR). Two major concepts are the “Metaverse,” where brands offer experiences blending the physical and digital worlds, and “Metamarketing,” which aims to create new experiences in this integrated environment. The traditional divide between physical and digital is now expanding to include real and virtual experiences.
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“Marketing 6.0,” like the previous books, has three authors. Philip Kotler, at 93 years old, still serves as a professor at Northwestern University’s Kellogg School of Management.
He has been recognized by the Financial Times as the 4th most important guru of all time and is hailed as “the world’s foremost expert on the strategic application of marketing.” Additionally, he is considered one of the most significant pioneers in digital marketing.
Hermawan Kartajaya, 74, is an Indonesian marketing guru with 12 internationally published books. He also owns MarkPlus, one of Indonesia’s largest marketing consulting firms.
The third author, Iwan Setiawan, is a seasoned marketing professional. He is the CEO of Marketeers, one of Indonesia’s largest media marketing companies, and has been working in the industry for 20 years, bringing extensive consulting experience.
The book is distinctly organized into separate sections, making it easier to read.
We are now witnessing the emergence of the Phygital Generation (Physical + Digital), which perceives the physical and digital worlds as one. In previous marketing efforts, the focus was on Generation Y, due to their substantial numbers and considerable purchasing power. However, now we have Generation Z and Generation Alpha, who were born into the digital world and not content with its offerings, demand even more.
Generation Z, involving those born from the mid-1990s to the early 2010s, are deeply familiar with technology, while Generation Alpha, born after 2010, is growing up fully immersed in digital advancements. Together, these two generations total over four billion people around the globe, making them extremely valuable to brands.
The Phygital Generation, who seamlessly merge the physical and digital worlds, comfortably navigates both physical stores and online platforms when shopping. The book highlights social media, short video content, and online games as indispensable elements in the lives of these generations and adds, “Brands must offer interactive and immersive customer experiences to engage with these generations.”
The authors highlight that this new generation reaches maturity at a faster pace than its predecessors. Early exposure to technology and strategic targeting by brands from a young age significantly accelerate their self-expression and inclination towards using tech devices.
Among the defining characteristics of the Phygital Generation are a pragmatic attitude, a search for authenticity, and a strong need for self-expression. These generations, characterized by their strong financial awareness, prioritize functional benefits when assessing products and services. They are drawn to brands that resonate with their values and invest time in shaping their digital identities.
The Inevitability of Immersive Marketing
As digital lifestyles become indispensable for Generation Z and Generation Alpha, businesses must adapt to this reality. In the marketing realm, five essential elements shape the digital landscape: content, social media, e-commerce, artificial intelligence (AI), and devices (phones, tablets, computers). These components are pivotal in establishing the role of marketing in the digital era.
The authors emphasize the growing importance of short video content today. Today, audiences favor concise, direct content, with short videos gaining immense popularity through platforms like TikTok, Instagram Reels, and YouTube Shorts. These brief formats especially engage Generation Z and Generation Alpha, prompting brands to find innovative strategies to showcase their products on these channels.
Secondly, we see the rise of community-based social media platforms. Platforms like Reddit and Discord enable users to share and discuss content tailored to specific interests. The authors believe these platforms stand out as alternatives to major social media platforms, providing users with a sense of privacy and security.
Thirdly, the growing trend towards interactive e-commerce is noteworthy. New e-commerce models, such as social chatting and live streaming, are enhancing the product discovery and purchasing experience, making the process more engaging. For example, platforms such as Facebook, Instagram, and TikTok now enable users to shop directly through social media.
Similarly, in China, consumers can recommend and purchase products on social media apps like WeChat, Sina Weibo, Zhihu, Meituan, Douyin, and Douban.
Fourthly, the use of language-based artificial intelligence (AI) is increasingly becoming prevalent. Voice assistants like Amazon Alexa, Google Assistant, and Apple Siri allow users to search for information and perform various tasks through voice commands. Additionally, chatbots like ChatGPT enhance customer experiences by engaging in more natural and contextual conversations with users. (I previously explored the voice industry in a past article, which you can view by clicking this link: https://www.linkedin.com/pulse/ses-espiyonaji-istihbarat-end%C3%BCstrisi-murat-%C3%BClker/).
Fifthly, with the increase in wearable technology devices, people can experience digital content in a more immersive manner. For example, augmented reality (AR) and virtual reality (VR) devices allow users to have more interactive and realistic experiences in the digital world.
For instance, Apple’s Spatial Audio technology creates the sensation of being at a live concert while listening to music, whereas the Apple Vision Pro features technology so advanced that it can nearly detach users from their surroundings.
I have also had the chance to try out the Apple Vision, which was quite an enjoyable experience. The gestures you make in the air might seem odd to others, but the extent of its adoption will hinge on how effectively it address user needs. Of course, there is also the question of how long you can stay engaged with a headset that disconnects you from the real world. We will see how things unfold…
At this point, accurately understanding the trend is vital: The future of marketing lies in providing interactive and immersive experiences. To engage Generation Z and Generation Alpha and fulfill their expectations, brands must embrace creative strategies that blend the digital and physical realms. I think the metaverse meetings we attend with our avatars were just the beginning. In the future, the distinct boundaries between real and virtual environments will increasingly merge. Recognizing this shift and positioning oneself accordingly is crucial, which makes me wonder: When will Marketing 7.0 appear, and what will it involve?
The Future of Customer Experience
In the marketing world, there is a growing trend to focus more on delivering customer experiences than on merely creating products. This shift transforms marketing from a single function into a cross-functional approach, encompassing all interactions a customer has with a company.
Customer experience spans a broad spectrum, from seeing the first ad about a product to researching it on Google, from examining the product in-store to using it, from filing complaints and warranty claims to commenting about the product on social media. Each touchpoint creates a different impact depending on the context of the other touchpoints. That is why customer experience is a holistic and integrated concept.
The authors highlight how the rising significance of customer experience is driven by increased transparency and the rapid shift in younger generations’ preferences due to social media. With product life cycles getting shorter, businesses must innovate and bring new products to market continuously. However, launching a new product alone is not sufficient; the customer experience with the product now holds equal importance to the product itself.
Under this topic, the authors cite Coca-Cola’s marketing campaigns as examples. Coca-Cola captured the personalization trend with its “Share a Coke” campaign. Additionally, In the “Friendly Twist” campaign, special vending machines were set up on university campuses, featuring uniquely designed bottles that could only be opened when paired with another bottle. This campaign, which promoted social interaction, is noted in the literature as a prime example of how Coca-Cola engages with younger generations.
Eventually, we need to thoroughly assess the future of customer experience for our brands and determine how they can adapt to this evolving landscape.
Key Technologies Driving Marketing 6.0
Technology is a pivotal force in shaping the future of marketing. Central to Marketing 6.0 are five cutting-edge technologies that blend physical and digital experiences: the Internet of Things (IoT), Artificial Intelligence (AI), Spatial Computing that facilitates interaction between the physical and digital worlds, Augmented Reality (AR) and Virtual Reality (VR), and Blockchain.
The Internet of Things (IoT) collects real-time data from the physical environment and transforms it into digital information. For example, in retail stores, it tracks customer movements and sends instant in-app promotional notifications as customers walk through specific aisles.
Artificial Intelligence (AI) is the ability of computers to mimic human cognitive abilities. AI learns customer preferences by collecting data from IoT sources in real-time and instantly presents the most suitable product or content to customers.
Spatial Computing is a set of technologies that facilitate digital interaction in physical spaces. For instance, smart fitting rooms recognize the clothes customers bring in and offer personalized style recommendations. It feels similar to the Internet of Things working with sensors… but the logic is the same. Sensors recognize you in the physical space and offer recommendations on digital screens in changing rooms. This technology can be applied to various physical environments.
Augmented Reality (AR) and Virtual Reality (VR) are transforming how we interact with digital content. AR enables customers to explore products and services in a virtual setting, letting them visualize how items look and function. For instance, customers can virtually try on shoes, or IKEA utilizes AR to help users see how furniture would fit in their homes. In turn, VR offers fully immersive experiences in virtual environments. Brands such as Volvo and BMW use VR technology to offer virtual test drives.
Blockchain helps content creators establish ownership rights over the content they produce. This technology underpins decentralized social media platforms and enables more secure and transparent content sharing among users.
The technologies mentioned above form the foundation of Marketing 6.0, enabling brands to offer more immersive and interactive experiences to their customers.
Creating Extended Realities
The authors emphasize the importance of offering experiences to customers that are not just digital or physical, but a blend of both worlds. Extended Reality (XR) technologies are crucial enablers of this integration.
Augmented Reality (AR) enhances the physical environment by overlaying digital elements onto the real world. For example, the Pokémon Go game allows players to find and catch virtual monsters at real-world locations using their smartphones. At that time, we saw people walking around streets and neighborhoods with their phones in hand. Some businesses even transformed their locations into areas where players could earn in-game currency in Pokémon Go.
Virtual Reality (VR), on the other hand, creates entirely digital environments, providing users with an experience completely detached from the real world. VR is also used for educational purposes; for instance, customer service representatives can simulate real-world scenarios through VR as part of their training.
Stepping into the Metaverse
The Metaverse blurs the lines between digital and physical realities, enabling users to engage in real-world activities within virtual environments. This emerging digital universe represents the next evolution of social media platforms. Younger generations, particularly Generation Z and Generation Alpha are increasingly drawn to the metaverse, spending more time immersed in this virtual realm. For example, while playing in the virtual worlds they create, they live as entirely different personalities through their avatars. We do not yet know what kind of social misalignments and health issues this might bring in the future.
The early examples of the Metaverse come from the gaming industry. Games like Roblox, Fortnite, Minecraft, Decentraland, and The Sandbox allow users to interact in virtual worlds and experience various activities. These games are not limited to just playing; they also offer different experiences such as virtual concerts and events. The authors cite the successful campaigns of Fortnite, which hosted virtual concerts by famous artists like Marshmello, Travis Scott, and Ariana Grande, reaching millions of users.
The Metaverse extends beyond gaming and entertainment, with expectations that social media platforms will evolve in this direction. Facebook’s rebranding to Meta signals its intent to pioneer in this space, aiming to immerse users more deeply in the Metaverse through virtual reality headsets and augmented reality glasses. However, the younger generation’s interest in natural living and social detox trends could be a significant barrier to the future success of these new formations. So, what should we do? Should we restrict these innovations with the same prohibitive mindset, just as calculators were banned in middle school in the 1970s? Would this be a solution?
In conclusion, metaverse marketing is a pivotal element in shaping the future of brand strategies. By establishing a presence in the metaverse, brands can build deeper and more impactful connections with younger generations. In this new universe, where physical and digital worlds fully merge, it is possible to offer customers unique and unforgettable experiences. However, I believe the future of the metaverse will hinge on whether this technology can be worn comfortably for extended periods without causing physical discomfort, and whether it can offer immersive experiences without disconnecting users from their real-life surroundings. For example, right now, as I’m writing these lines to you, I could be sitting in my scenic room in front of an open window, listening to the chirping of my caged birds, watching the linden blossoms gently sway in the morning breeze, feeling the coolness of the morning with my bare feet, sipping my milky coffee, while also keeping up with social media, WhatsApp, and other updates on other screens around me, glancing at the TV, and listening to music. No, I am not exaggerating. I just have to get up to make coffee. The metaverse claims to offer you all this and perhaps more, but how it will achieve this without changing us, I don’t know. On the other hand, it might find it easier to blend into the environment I’ve described as merely another screen.
Kotler describes Nike as one of the pioneers of metaverse marketing. Nike has created a new shopping experience by offering digital shoes and clothing for users’ avatars in virtual worlds, which generated quite a buzz. Users could dress their avatars in these digital collections, reflecting their style in the virtual world. This approach was both innovative and groundbreaking, catering to the younger generation’s desire for self-expression and a deeper personal connection with brands.
Sensory Marketing
In the marketing world, multisensory marketing is becoming increasingly important in enhancing customer experience. Sensory marketing seeks to create deeper, more memorable brand interactions by engaging all five senses of customers. This approach goes beyond just sight and sound to also include touch, taste, and smell.
Cafés exemplify multisensory marketing well. Entering one of their locations, you are not just purchasing coffee; you are immersing yourself in the brand’s carefully crafted atmosphere. The focus here is on delivering an “integrated” experience. The visual arrangement of the store, the music selection, the smell of coffee, the taste of the coffee, and the comfortable seating areas—all of these elements engage your senses. This experience is a factor that makes a significant difference.
The book highlights another important aspect of sensory marketing: combating digital fatigue. Customers continuously use their visual and auditory senses while interacting with digital devices throughout the day, which can lead to fatigue over time. At this point, integrating physical and digital experiences aims to provide a more relaxing and revitalizing interaction. I’m doubtful, though, as this approach might end up being even more exhausting.
Spatial Marketing
Spatial marketing revolutionizes customer interaction by integrating physical spaces with human behavior. This approach aims to provide customers with a more immersive experience through the use of technology and design. Amazon Go, Amazon’s chain of physical stores, is one of the most striking examples in this field.
Customers entering Amazon Go stores can complete their shopping and leave without the need for a cashier, thanks to Amazon’s “Just Walk Out” technology. Shoppers check in using an app connected to their Amazon account, and the items they select are automatically tracked. When they exit, their purchases are charged to their Amazon account, ensuring a smooth and uninterrupted shopping experience. This is an experience you might want to repeat, right? Or perhaps you could invite a friend to share this experience next time—but who will pay? However, it’s important to remember that these initiatives must deliver positive commercial outcomes, or they won’t be sustainable.
Alternatively, you should be rich as my late mother used to say: When I was a child, she would take me by the hand and we would go shopping around the neighborhood. After visiting the grocer and the greengrocer to complete our purchases, she would say, “Thank God we can shop without looking at the prices; this is what wealth is.” But in reality, what we bought wouldn’t even fill a shopping bag, and despite my insistence, she would dismiss my requests, saying things like, “It’s too expensive, it’s out of season, it’s not good now,” and wouldn’t even buy bananas. In the end, our greatest wealth was contentment.
To summarize, the book “Marketing 6.0: The Future Is Immersive” appears to be a valuable resource for anyone looking to understand the evolution and future trends of marketing. Philip Kotler, Hermawan Kartajaya, and Iwan Setiawan outline the various phases the marketing world has experienced, detailing how each phase has shaped and evolved the marketing landscape.
The book is especially valuable in illustrating the evolution of marketing, from its origins as a discipline focused on serving the human spirit to its transformation through the digital revolution, culminating in immersive, all-encompassing, integrated, and continuous experiences. Grasping the concepts and developments outlined in the book is essential for effectively analyzing the evolving landscape and strategically positioning yourself. In a fast-changing environment where decisions can significantly influence key outcomes, rather than saying foreigners use, ‘The person who chases two rabbits catches neither,” I would say in Turkish, “Dimyata pirince giderken evdeki bulgurdan olmayın!”
In a world where choices are almost endless, sharp instincts are essential to navigate effectively. In business, developing these instincts is a long-term, ongoing journey that starts with transforming your experiences into actionable insights and continues through learning from those around you. This is why I share my thoughts with you; it’s a process through which I also learn and grow.
