As time goes by, society is changing and therefore, technologies are advancing and their use is

necessary, so marketing 5.0 was born as a change which describes these changes that occurred
from product-oriented marketing, which we know that in the past marketers focused more on
the sales of a specific product and not on the needs of the consumer. After that, customer-
oriented marketing was born, which is marketing 2.0, and as a last update before entering the
digital era, Philip Kotler proposes human-centered marketing, which is marketing 3.0, which
focuses on providing solutions to the most difficult social and environmental problems in the
world, and we can say that this type of marketing is the last one that has a traditional approach.

“It took almost 70 years for marketing to evolve from its product orientation to the concept of
human-centricity” (Kotler et al., 2021, p. 17.).

The emergence of marketing 4.0: The pivot towards the digital age

The focus of this type of marketing is to move from the traditional era to the digital one, since
we were able to observe that marketing requires an omnichannel approach both online and
offline, meaning that this type of marketing seeks to serve the consumer in a hybrid way
throughout their journeys as customers. We believe that, and the book suggests, marketing
specialists are in a period of transition and adaptation to digital.

Marketing 5.0

“It is the application of technologies that imitate humans to create, communicate, deliver and
improve value” (Kotler et al., 2021, p. 19.).

As a more critical issue, we see that marketing is what we call the next technology, which is a
group of people who aim to imitate the capabilities of human specialists. Over the years,
artificial intelligence has been developed for human cognitive capabilities, particularly to learn
from unstructured customers and discover insights that could benefit marketers. It is therefore
important to seek a combination of technologies in terms of artificial intelligence, in order to
offer appropriate offers to the right customers. Because “artificial intelligence helps us identify
useful purchasing patterns so that e-retailers can recommend products and the right content to
a group of buyers based on their profiles.” (Kotler et al., 2021, p. 20.). While artificial
intelligence helps us find such patterns, we must take into account that only among humans
can we understand our behavior, since the information must be filtered and interpreted.
One of the most popular applications currently used are the so-called chatbots, specific for
customer service, which have the utility of facilitating the tasks posed by the organization,
including the efficiency of the staff's work, and helping to optimize the main tasks.

Technology as an improvement in marketing

“Marketing in the digital context is not much more than migrating customers to digital
channels or spending more on digital media” (Kotler et al., 2021, p. 24.).

1. While the information that the company collects through each point of contact with the
customer, this information helps in making decisions, based on said information.
2. Through artificial intelligence, it is much easier for specialists to predict the outcome
before executing the actions selected for the company.
3. It allows to offer contextual and personalized experiences.
4. Through artificial intelligence, specialists will seek to offer greater value to customers
by offering attractive products.
5. Instead of building products or campaigns from scratch, companies can build on open
source platforms and leverage co-creation to accelerate time to market. However, this
approach requires not only the support of technology, but also the right agile attitude
and mindset.

There are 5 components on which marketing is based

1. Data-driven marketing; which refers to the collection and analysis of big data.
2. Agile marketing refers to the use of multifunctional teams to deliver campaigns and
products effectively.
3. Predictive marketing: predicting outcomes before taking the action predicted by
marketing.
4. Contextual marketing; provides personalized interactions.
5. Augmented marketing; use of technologies that improve the productivity of workers in
the area.

Marketing to Baby Boomers, Generations X, Y, Z and Alpha

There is a constant challenge in serving different generations, since they have differences in
terms of their sociocultural environment and different life experiences, so life experiences
make these types of generations have preferences for specific products or services.

“Every customer is unique, and with technological support, marketing will eventually become
one-to-one, driven by personalization and customization at the individual level” (Kotler et al.,
2021, p. 34.).

To better understand the generations, we will describe them in terms of personnel:

- Baby Boomers (the aging economic power): People who are considered to be part of
this generation were teenagers in the boom years, meaning they grew up in well-off
families, associating them with movements in the United States and other Western
countries.
- Generation X (Middle Child Leaders): This generation has been overlooked or ignored
by marketers and is considered “the forgotten child” because, growing up in dual-
income families, children of Generation X spent less time with their families and
interacted more with friends.
- Generation Y (millennials genns why): The most common generation in recent
decades, this generation is characterized by researching, buying online and through
their mobile phones.
- Generation Z (the first digital natives): These are the people who want brands to offer
personalized content to customers. This type of generation is immersed in the search
for social change and environmental sustainability.
- Generation Alpha (the children of millennials): Generation Alpha is shaped and
influenced by the parenting and lifestyle of their parents, who are Generation Y,
meaning they are very well educated, technologically savvy, and inclusive of society.

TYPES OF MARKETING

Marketing 1.0: Product-centric.-

Its purpose is to create perfect products and services that produce the greatest value in the
minds of customers, and it seeks to serve baby boomers and their parents.

Marketing 2.0: Customer-centric.-

This type of marketing seeks to understand segmentation and targeting, meaning they
create a product for a specific segment and do not seek to cover the entire market.

Marketing 3.0: Human-Centered.-

These are business practices that focus on ethical and socially responsible marketing with
this business model.

Marketing 4.0: Traditional to digital

“Marketers adapted to this change by communicating and delivering products and services
through an omnichannel presence. They began to move from traditional to digital” (Kotler
et al., 2021, p. 46.).

Marketing 5.0: Technology for humanity

It seeks to bring about positive changes in humanity and improve people's quality of life,
while also seeking to promote technology in all aspects of daily life.

Polarization:

“Corporations have generated enormous wealth in recent decades. However, the

distribution of that wealth has been uneven, pulling people in opposite directions. The
middle segment slowly migrates, either rising to the top or falling to the bottom of the
pyramid” (Kotler et al., 2021, p. 49.).

Globalization demands inclusion but does not create equitable economies. It seems that it
harms as much as it aims to help, so we can identify that it is a cause of inequality. The
side effect is that opinions and decisions are now determined through the prism of political
identity, not necessarily for the common good.

Markets no longer consist of a wide range of offerings from the cheapest to the most
luxurious and have begun to polarise between the top and bottom ends. The middle
segment is disappearing as people switch to no-frills quality offerings or move to more
premium luxury offerings.

When everything is polarized, there are only two meaningful ways to position your brands
and your businesses.
Companies must integrate the concept into their model by reinvesting in society with a
purpose. So companies should use technology, because it plays an important role in
accelerating progress and opening up for everyone.

The digital divide

The fundamental obstacle to connectivity is no longer the availability and accessibility of

the Internet. So we must note that Internet usage is not yet evenly distributed, new users
will come mainly from emerging markets. In addition to connecting people, the Internet
also connects devices and machines.

In Marketing 5.0, companies must prove to customers that the right applications of
technology can improve human happiness. Technology enables a personalized approach to
solving their problems while allowing for optional customization. Customers must be
convinced that digitalization does not kill social relationships. Instead, it provides a
platform to build a more intimate connection. between customers and their
communities. (Kotler et al., 2021, p. 80.).

To deliver a superior customer experience, integrating high-tech, high-touch interactions is

imperative.

Digital-Ready Organization: One Strategy Doesn't Fit All

In this chapter of the book we talk about the COVID-19 pandemic and how it becomes a
global digital accelerator. This means that companies and markets have been forced into
restricted mobility and have therefore become highly digital. A digitally prepared
organization is prepared for who will follow as digital natives take over markets around
the world.

We must assess the digital readiness of the customer base in which we compete, and
therefore self-assess the digital capabilities of the organization.

The next technology:

“The next technology has been in development for decades, but in a somewhat dormant
state” (Kotler et al., 2021, p. 114.). So in the next decade, this developing technology will
finally take off.

The foundation is all laid with open source software computing, high-speed Internet,
ubiquitous mobile computing and big data. So we can say that what technology in its
advanced state aims to imitate is the highly contextual forms of human learning.

Life experience enriches our general cognitive understanding of how the world works. So
Big Data improves the life experience.

Considering the applications of the next crucial marketing technology, thus allowing the
customer to have an adaptable experience, and with distributed computing capabilities,
delivery is in real time at the point of demand.

The new CX

“In 2015, the Henn-na Hotel in Japan opened what Guinness World Records officially
recognized as the world’s first hotel with robot staff. Multilingual reception robots are
equipped with facial recognition to assist guests with check-in and check-out. The robot
concierge helps to order taxis while the robot cart brings luggage to the rooms and the
housekeeping robot cleans the rooms. Initially, the use of robots was a strategy by the
hotelier to overcome staff shortages in Japan” (Kotler et al., 2021, p. 115.).

The expectation was that the minimal amount of staff would be able to run the hotel,
keeping labor costs down. But the robots created problems that frustrated guests, creating
more work for hotel staff to fix. One example of a guest complaint was about an in-room
desk robot that failed to understand snoring for a query and thus repeatedly woke sleeping
guests. As a result, the hotel scaled back automation and “fired” half of its robots.
Interactive and immersive experiences that were once peripheral are now more important
than products and core. Technology is primarily useful for analyzing data to discover
insights about specific target markets.
Finding optimal parameters, for example in media purchasing and pricing, is another area
where marketing has proven effective. The predictive power of artificial intelligence is
valuable for increasing sales, recommending products, and detecting potential losses.

Artificial intelligence also enables marketers to personalize products and services at scale
and speed. But the role of the human touch should not be overlooked, as it will offset the
speed and efficiency that technology brings with wisdom, flexibility and empathy.

Taking advantage of new tactics. Marketing Technology

“Great marketing typically comes from great market understanding. Over the past few
decades, marketers have refined the way they conduct market research to uncover insights
their competitors don’t have” (Kotler et al., 2021, p. 140.). In the past decade, marketers
also became obsessed with collecting a robust customer database to facilitate better
customer relationship management. And they began to wonder how to merge two isolated
sets of information from market research and analysis into a unified data management
platform.
Despite the promise, not many companies have figured out how to best do data-driven
marketing.

The rise of big data has changed the face of market intelligence and targeting. The breadth
and depth of customer data is increasing exponentially. In the digital age, the problem is
no longer the lack of data, but identifying the data that matters.

That’s why data-driven marketing should start with defining specific, narrow goals. The
information obtained can lead to more precise marketing campaigns and offers. However,
data-driven marketing should only be undertaken as an information technology initiative.
A strong marketing leadership team must lead and align business resources, including
information technology.

Predictive Marketing

Predictive analytics uses and analyzes past historical data. But it goes beyond descriptive
statistics, which involves reporting retrospectively on a company's past results to explain
the reasons behind them.
It also goes beyond real-time analysis to provide rapid response in contextual marketing to
test marketing activities in agile marketing. Predictive marketing examines customers' past
behaviors to assess the likelihood that they will display similar or related actions.
Predictive analytics is essential for proactive metrics and perfect for planning purposes.
With predictive analytics, marketers have a powerful tool to improve decision making.

Data-driven marketers can stay ahead of the curve by predicting the outcomes of every
marketing action.

There are several popular predictive marketing modeling techniques, including regression
analysis, collaborative filtering, and neural networks. Therefore, most marketers will need
technical help from statisticians and data scientists. But marketers must have a strategic
understanding of how models work and how to extract insights from them.

Contextual Marketing: Creating Meaning and a Personalized Response

Although the technology does not recognise faces, it does not store identities because it
predicts the age and gender of buyers. As you might expect, it collects a lot of data about
the buyer's market and what product package or campaign is working.

In addition, technology allows for quick changes and promotions for experimentation.

“IoT and AI make a powerful combination with the goal of creating a contextual
marketing experience in the physical world” (Kotler et al., 2021, p. 171.). The application
of contextual marketing in the physical space in the past often depended on the ability of
frontline staff to read their customers. With the help of IoT and AI, that is no longer the
case.
Once the infrastructure is in place, marketers will only need to define triggers and response
actions.

Augmented Marketing: Delivery

Digital tools can empower frontline employees who have direct interactions with
customers. So when knowledgeable customers who have spent hours researching products
online finally arrive at the store, they expect equally knowledgeable frontline staff to
interact with them. Customers are used to reading reviews before heading to hotels,
professional services firms, or educational institutions to explore further. These savvier
customers have high expectations, and that makes the jobs of frontline employees more
challenging.

It is vital to empower employees with the right knowledge that companies have about their
customers. Customer-facing employees are the most important medium to educate
customers about things that are difficult to convey through other means. They can focus on
sales conversion, cross-selling, and upselling rather than making intelligent guesses about
customers. “Transaction histories and AI-generated product recommendations are part of
the information that will help employees understand what to offer customers” (Kotler et
al., 2021, p. 181.).

It is equally important to be able to provide personalized interactions and build

relationships as if you have known your customers for a long time. Companies need to
create not only a digital interface for customers, but also a suitable interface for
employees. Hotels, for example, can allow customers to make requests via in-room tablets
or their smartphones, and those requests can reach housekeeping, the kitchen, or the
concierge directly or via a connected chatbot.

The customer interface is one of the areas where symbiosis gives the best results. In
customer service, the digital and self-service interface is for serving the mass of customers,
while customer service is for the majority.

Smart and always active customers must be accompanied by competent employees. Being
able to provide insights based on data at the point of interaction allows employees to tailor
their approach to the customer.

Agile Marketing: Execution Operations at pace and scale

Companies need to monitor and respond to new trends and changing customer behaviors.
Therefore, high-tech companies are early adopters of agile marketing. The customer
experience, which used to be very private, can be broadcast to everyone else via social
media, which reduces its Wow factor every time companies try to replicate it a second
time. Consequently, companies must continuously monitor and act on ongoing trends and
conversations at a faster pace.

Always-on customers demand that businesses keep up with organizational flexibility,

which calls for an agile marketing approach. Operational stability must also be
complemented by agile marketing, which becomes the catalyst for growth. An agile
marketing execution requires several components.