How do companies use digital strategies to form a complete closed loop to manage the entire life cycle of customers? A few weeks ago, we started to talk about how marketing theory gradually iterates from marketing 1.0 to marketing 2.0, marketing 3.0, and marketing 4.0 theories as the environment changes. Marketing 1.0 is a product-oriented concept with 4P as the main theoretical basis; Marketing 2.0 is a customer-oriented concept with 4C as the main theoretical basis; Marketing 3.0 is a customer-oriented concept with 4R as the main theoretical basis; Marketing 4.0 is an integrated marketing based on the Internet era.
We have figured out several points as mentioned last week are the common challenges faced by enterprises, and it is recommended that entrepreneurs transform the business paradigm of “building bricks” into a business paradigm of “counting heads”.
Likewise, the countermeasures taken by enterprises to deal with the growth dilemma should not be to be blindly restless and busy attracting new customers all day long, so that customers will be lost quickly even if they are pulled in; enterprises should consider whether they have high-quality customers, how many high-quality customers they have, and where to get them These high-quality customers, how to provide higher corporate value to these high-quality customers.
Marketing 5.0 is at a higher level than Marketing 4.0. Marketing 4.0 discusses the work of the marketing function, while Marketing 5.0 raises the issue level to the overall strategic level of the enterprise. The problem at the corporate strategy level is to solve the problem of sustainable growth of the company.
Marketing 5.0 is based on a digital strategy in the post-internet era. “Post-Internet” mainly refers to the Internet environment different from portal websites and traditional e-commerce. The main difference is the change of the two major application environments of the mobile terminal and the social terminal. Post-Internet is to use new Internet concepts and technologies to create a digital strategy framework for intelligent enterprises.
Marketing 5.0 can be equated with an enterprise’s digital strategy, after all, marketing and sales are the most important basic functions of an enterprise. As the “father of management” Peter Drucker said, any business has two basic functions, and only these two basic functions: marketing and innovation.
So how should we build a digital enterprise? Whether to establish one independent and unrelated marketing mechanism after another or to closely connect all relevant links into a complete closed loop. This is the second important topic to be discussed in Marketing 5.0—the main difference between Marketing 5.0 and Marketing 4.0 in practice.
A very popular term is called “private domain traffic”. Many equate private traffic with social media when discussing it, while others think private traffic is just CRM buzzwords. Both claims dwarf the concept. Private domain traffic not only emphasizes “private domain”, but also emphasizes “traffic”.
The former emphasizes the operation of existing customers, while the latter emphasizes effective traffic drive. Thus, the definition of Marketing 5.0 is, “How do companies use digital strategies to form a complete closed loop to manage the entire life cycle of customers.” The whole life cycle of a customer includes “Interest”, “touch”, “sticky”, “value” and “recommendation/share” for customers, which is the private domain traffic of operating enterprises.
The spirit of private domain traffic is not to rush to buy traffic, but to focus on how to establish an effective closed-loop mechanism for the “introduction”, “growth” and “fission” of customers. This is a rethinking and upgrading of marketing thinking and corporate strategy.
Marketing 5.0 proposed in Kotler’s book results from theoretical and thinking innovations that emerged to meet the challenges of the new era. Marketing 5.0 is not only a tactical change in marketing functions but also an improvement in corporate marketing thinking and strategic thinking.
These theories and knowledge have their backgrounds, but changes in the market and people’s living environment, as well as technological innovations, have once again changed the relationship between enterprises and customers, leading to the gradual emergence of the shortcomings of these marketing theories.