Olivia: Alright Jackson, I'm going to say a brand, and you tell me the first slogan that pops into your head. Ready? Nike. Jackson: Just Do It. Olivia: Coca-Cola. Jackson: Open Happiness. Or, you know, Teach the World to Sing. Olivia: Okay, last one. Your local utility company. Jackson: Uh… "Please Pay Your Bill On Time"? Or maybe, "We've Noticed an Outage in Your Area." Olivia: Exactly! And that massive gap between a brand that's just a service and one that feels like part of our identity is precisely what we're exploring today. Jackson: It’s a huge gap. One feels like a transaction, the other feels like a relationship. Olivia: That's the core idea in a fascinating book by the legendary 'father of marketing,' Philip Kotler, along with Hermawan Kartajaya and Iwan Setiawan. It's called Marketing 3.0: As Forças que Estão Definindo o Novo Marketing Centrado no Ser Humano. Jackson: The 'father of marketing'? No pressure on this book, then. Olivia: None at all! And what's really interesting is that this concept wasn't born in a Madison Avenue boardroom. It was co-created with marketing leaders in Asia, specifically Indonesia, reflecting a global shift towards a more human-centric, almost spiritual view of business. It’s a powerful blend of Western strategy and Eastern philosophy. Jackson: Okay, that’s a surprise. I always assume these big marketing ideas come out of New York or London. So what does this evolution of marketing actually look like?

Olivia: Well, let’s start at the beginning. The book breaks it down into three stages. The first is Marketing 1.0, which was all about the product. It was the industrial age, and the goal was simple: make a functional product and sell it to as many people as possible. Jackson: This sounds very basic. Like, 'we made a thing, please buy our thing.' Olivia: Exactly. The perfect story to illustrate this is from Henry Ford. When he was producing the Model T, his approach was the epitome of Marketing 1.0. He famously said customers could have the car in any color they wanted… Jackson: Oh, I know this one! "As long as it is black." Olivia: Precisely. The focus was on standardization and efficiency to make the product affordable for the masses. The customer’s individual desire for a red car? Completely irrelevant. The product was king. Jackson: Right, so that's the vending machine model. You put your money in, you get a standardized product out. No conversation, no relationship. So what came next? Olivia: Next came Marketing 2.0, which is probably what most of us grew up with. This is the customer-centric era. Technology got better, competition increased, and suddenly, companies realized they couldn't just push one-size-fits-all products anymore. They had to understand the customer. Jackson: So this is where we get market research, focus groups, customer segmentation… all that stuff. Olivia: You got it. The new mantra became, "The customer is king." Companies started tailoring products and messages to different demographics and psychographics. They wanted to satisfy and retain the customer. It was smarter, more relational. It was a dialogue. Jackson: Okay, that makes sense. That’s the good barista who remembers your name and your usual order. But the book is called Marketing 3.0. So there must be another leap. Olivia: And it’s a huge one. The book argues we're now in the era of Marketing 3.0, which is values-driven. It’s not about the product, and it’s not just about the customer. It’s about the human spirit. Jackson: Hold on. The human spirit? Are you seriously telling me that people are choosing their yogurt based on its contribution to world peace? That sounds a bit idealistic. I buy toothpaste because I don't want cavities, not to achieve spiritual enlightenment. Olivia: I hear your skepticism, and it's a valid point. But think about it this way: people are more than just consumers. They are whole human beings with minds, hearts, and yes, spirits. They have anxieties about the state of the world—about social justice, the environment, their community. Marketing 3.0 argues that the most successful brands are those that address these deeper anxieties and aspirations. They don't just sell a product; they offer a mission. Jackson: A mission, huh? I’m still not fully sold. It sounds like something that would be easy for a consumer to ignore. Olivia: Is it? Let me tell you a story that shows just how fiercely people will defend a brand they feel a spiritual connection to. Let's go back to 1985. Coca-Cola was in a panic. In blind taste tests, more people preferred the sweeter taste of their rival, Pepsi. Jackson: The Pepsi Challenge! I remember the ads. Olivia: Exactly. So, Coca-Cola's executives made a perfectly logical, data-driven, Marketing 2.0 decision. They spent millions developing a new, sweeter formula, which they called "New Coke," and they discontinued the original. On paper, it was a brilliant move. The new product beat both old Coke and Pepsi in taste tests. Jackson: And in reality? Olivia: It was a catastrophe. The public reaction was not just negative; it was visceral. People were hoarding old Coke. There were protest groups, angry letters, thousands of furious phone calls a day to their headquarters. People felt betrayed. Jackson: But why? They were getting a product that tasted better, according to the data. Olivia: Because Coca-Cola had misunderstood what it was selling. They thought they were selling a brown, sugary beverage. But to their customers, they were selling something much more. They were selling Americana, nostalgia, happiness, a piece of their identity. They weren't just a product; they were a cultural icon. And when the company tried to change that, consumers felt like their brand was being stolen from them. They were protecting its spirit. Jackson: Wow. So they weren't just customers; they were guardians of the brand. Olivia: Exactly. In less than three months, Coca-Cola was forced to bring back the original formula as "Coca-Cola Classic." The New Coke debacle is the perfect example of what happens when a company forgets it's in the business of serving the human spirit, not just satisfying a customer's taste buds. It proves that this connection is real and incredibly powerful. Jackson: Okay, I’m convinced. That story is incredible. So a brand needs a mission that connects with people on that deeper level. But it seems really easy to just slap a mission statement on a billboard. How do you make it real?

Olivia: That is the perfect question, and it leads us straight to the second core idea of the book. The mission can't just be an external slogan. It has to be a 360-degree reality, lived from the inside out. The book argues that your most important customers are actually your own employees. Jackson: Your employees are your first customers. I like that. They’re the ones who know if the company is actually living up to its promises. They're the best lie detectors. Olivia: They are. And if they don't buy into the mission, your external marketing is just a hollow shell. The book gives a chilling example of this with the Enron scandal. Jackson: Oh boy, here we go. Olivia: In 2000, just a year before their spectacular collapse, Enron published its corporate values. The top two values on the list were "Integrity" and "Respect." They had posters in the hallways. They talked about it in meetings. Externally, they were marketing themselves as a cutting-edge, respectable energy company. Jackson: While internally they were cooking the books and committing one of the biggest corporate frauds in history. The hypocrisy is staggering. Olivia: It's the ultimate failure of internal marketing. The employees knew. They lived in what was described as a "highly disfunctional workplace where financial fraud was almost inevitable." The values on the wall were a joke, and that rot eventually brought the whole company down. It shows that you can't fake a mission. Jackson: Okay, that’s a powerful example of what not to do. But what does it look like when a company gets this right? Can you give me a story where the internal values and external marketing are perfectly aligned? Olivia: Absolutely. Let's look at the outdoor apparel company, Timberland. Their brand is built on a rugged, outdoor, earth-loving ethos. But they back it up with real action, starting with their employees. They have a program called the "Path of Service," which gives employees paid time off to volunteer in their communities. Jackson: That’s a nice perk. Olivia: It’s more than a perk; it’s part of their DNA. In the mid-90s, the company hit a rough patch. Sales were down, profits were gone. The logical business decision would have been to cut costs, and the "Path of Service" program was an obvious target. It was expensive. Jackson: And did they cut it? Olivia: They didn't. The leadership team decided that cutting the program would be a betrayal of their core identity. They believed that "doing good" was integral to "doing well." They kept the program, even when it hurt financially. Jackson: Wow. That sends a powerful message to the employees. Olivia: A hugely powerful one. It proved that the company's values weren't just for marketing brochures; they were real, even under pressure. And that authenticity radiates outward. When a Timberland employee, who has just spent a paid day planting trees, talks to a customer, they aren't just selling a boot. They are a genuine ambassador for the brand's mission. They believe in it because they've lived it. Jackson: So Enron had fake values on the wall, and Timberland had real values in their actions. The difference is night and day. It’s about integrity. Olivia: That’s the word. The book introduces a simple but powerful model for this: the 3Is. Identity, Image, and Integrity. Your Identity is your positioning—who you are. Your Image is how you appeal to customers emotionally. But Integrity is the bridge that makes it all real. It’s about delivering on your promises and proving that your identity is authentic. Without integrity, the whole thing is a house of cards.

Olivia: So when you put it all together, the evolution of marketing isn't just about creating better ads or more targeted campaigns. It's a journey from a one-way street—'buy my product'—to a two-way relationship, and finally to a shared community with a common purpose. Jackson: But that community collapses if the foundation—the company's own employees and values—is rotten. The Enron story proves that. You can't build a strong brand on a weak culture. Olivia: Exactly. Marketing 3.0 is holistic. It demands that companies stop seeing social and environmental responsibility as a separate department for "corporate donations" and instead integrate it into the very core of their business strategy. It's about creating value for all stakeholders—customers, employees, partners, and society as a whole. Jackson: It really makes you look at the brands you buy differently. It’s no longer just about price or quality. You start asking different questions. Olivia: Like what? Jackson: Like, what does this company stand for? How do they treat their employees? What impact are they having on the world? Are you just buying a product, or are you funding a mission you believe in? Olivia: That's a powerful question for everyone to consider. The book offers ten credos for this new era, but the first one is the most important: "Love your customers, respect your competitors." And "love" here isn't just about good service; it's about connecting with their hopes and dreams. Jackson: I think a good takeaway for our listeners is to try this. Next time you're about to buy something, especially from a brand you use often, take five seconds and ask: What am I really supporting here? The answer might surprise you. Olivia: I love that. And we'd love to hear your thoughts. What's a brand you feel a real, genuine connection to, and why? Let us know on our social channels. We're always curious to see which companies are getting this right. Jackson: It’s a fascinating shift from just being a consumer to being a conscious participant in the marketplace. Olivia: It is. It’s about making the world a better place, one purchase at a time. Jackson: A powerful thought to end on. Olivia: This is Aibrary, signing off.