Next, coming changes will bring a Fifth Paradigm to marketing, driven by tech and society

Marketing has evolved through four paradigms: First, a focus on the product, emphasizing rationality; second, an emphasis on emotion, corresponding to the rise of television; third, the emergence of data-driven marketing with the advent of the internet; and finally, the "always-on" Fourth Paradigm, driven by smartphones and social media, which transformed marketing from an art into a science.

Marketing is on the brink of a transformation towards Quantum Marketing, the Fifth Paradigm. This shift is driven by three key factors: advancements in technology like AI, AR/VR, 5G, IoT, 3D printing, smart speakers, wearables, robotics, drones, and blockchain, which generate vast data and open new marketing avenues; societal changes and shifts in marketing practices, reshaping loyalty, emphasizing trust and purpose, and disrupting traditional marketing elements like advertising and agencies. This new paradigm promises complexity yet opportunities for creativity and innovation.

AI's impact on marketing surpasses all other disruptions

In the Fifth Paradigm, the primary commodity will shift to data. Mobile phones and sensors integrated into consumers' "smart products" and wearables will increasingly provide a vast amount of data. The competitive advantage of companies will rely on marketers' ability to analyze and act on this data in real-time. However, marketers must prioritize protecting consumer privacy. As tech companies phase out browser cookies – Google has committed to doing so by approximately 2024 – marketers need to devise new methods to track and target consumers online.

AI is set to revolutionize marketing by enabling marketers to uncover patterns within vast datasets, offering insights into promotions and pricing, and facilitating the delivery of highly personalized messages and products to target customers. Additionally, AI can support various functions such as chatbots, virtual assistants, media buying, content creation, and ROI computation for campaigns and promotions.

AR, VR, IoT, wearables, blockchain, and 3D printing transform marketing strategies

The onset of the Fifth Paradigm will bring forth a surge of fresh technologies, presenting both challenges and opportunities for marketers. The rapid deployment of 5G cellular networks will link numerous devices with minimal latency, facilitating the delivery of instantaneous, personalized marketing messages driven by real-time analytics. Augmented reality (AR), the integration of digital data onto maps or images, will develop methods for engaging consumers in interactive experiences.

Virtual reality (VR), an emerging technology, is poised to revolutionize consumer experiences by providing immersive, interactive purchasing encounters, greatly influencing merchandising and entertainment. Smart speakers are driving a shift towards voice commerce, impacting branding and consumer engagement strategies. The Internet of Things (IoT) will collect data and deliver real-time advertising through connected devices. Wearables offer profound insights into individual consumers’ lives. Additionally, 3D printing will disrupt distribution in marketing and expand customization possibilities.

New sciences drive marketing innovation

Psychology, sociology, anthropology, and mathematics have long been influential in marketing. Today, new sciences like behavioral economics, neuroscience, the study of anonymity, and sensorial science offer fresh insights and tools. Behavioral economists explore how psychological and social factors impact economic decisions. Marketers can apply these insights to better anticipate consumer behavior, improving promotions and campaigns.

Neuroscientists explore how individuals perceive and react to marketing communications. The study of anonymity sheds light on how anonymity influences people's behavior, including their behavior as consumers. Understanding psychological aspects and irrational factors in consumer behavior aids marketers in comprehending how consumers make decisions amidst a barrage of marketing messages. Sensorial science assists marketers in engaging consumers' five senses."

Traditional advertising will cease to exist in the future

The avalanche of information inundating individuals today seals the fate of advertising. People struggle to process the deluge of messages they encounter daily. They seek refuge from advertising through ad blockers, with many opting to subscribe to ad-free services like YouTube Premium. Marketers must innovate to reach consumers. The traditional approach of word of mouth evolves into "Quantum Experiential Marketing" (QEM) for the Fifth Paradigm.

QEM involves converting individuals into brand advocates by offering captivating experiences, both physical and digital, prompting them to share these experiences with others. Airbnb and Mastercard serve as prime examples of leveraging remarkable experiences to enhance brands and businesses. For instance, Mastercard shifted its Priceless advertising campaign into an experiential platform, providing exclusive curated experiences. This initiative propelled Mastercard from the 87th position to a top-10 brand worldwide in a short span.

Marketing evolves multisensory, life-oriented, affinity-focused, targeting machines

To combat information overload, marketers are embracing multisensory marketing, appealing to consumers' five senses. By utilizing music, rhythm, touch, taste, smell, and nonverbal visuals, messages can directly access the primal brain, where emotions influence decision-making. This approach is relevant to both B2B and consumer marketing. Life marketing involves understanding consumption within the broader context of consumers' lives. For instance, Dove soap has gained traction in a competitive market by redefining its purpose based on insights into girls' perception of beauty.

Brand marketers should no longer anticipate “loyalty” from consumers; instead, they must cultivate 'affinity' – a deeper connection. Achieve this by comprehending the fundamental elements of loyalty and integrating them into promotions and campaigns; employing real-time, contextual communication; and delivering delightful experiences to consumers. Marketers have already mastered marketing to machines, such as through search engine optimization. Consumers are increasingly relying on smart speakers and IoT devices to aid them in their purchasing decisions.

Trust: A key competitive edge for brands

Many perceive marketing as dishonest due to practices like deceptive packaging and false claims, eroding trust. Marketers must prioritize ethics, ensuring truthfulness and transparency. Building trust offers a competitive edge. Marketers must ethically use data, respecting privacy and promoting diversity. Brands embracing integrity will benefit from positive "brand karma."

Prioritize service in marketing efforts for optimal impact

Companies encounter various types of risk, including reputational, financial, legal, and risks related to intellectual property and consumer privacy. Crises are inevitable, so marketers must be prepared. Marketers should engage in risk management activities such as creating risk heat maps and developing crisis management plans, or enlist the help of professionals. During a crisis, marketers should shift their focus from selling to providing service. This helps in building trust, which customers recall post-crisis.

Effective communication is crucial during a crisis. Marketers should give priority to internal communications, ensuring that executives, the management committee, and the entire workforce are kept informed. External communications should adhere to a clear strategy, possibly involving influencers to support the brand if appropriate. The company should take ownership of any mistakes and adopt a proactive stance while maintaining an appropriate tone. Under no circumstances should the brand become inactive.

Marketing complexity rises as it aligns more with business outcomes

Traditionally, marketers excelled in design, aesthetics, and the fundamental elements of product, price, place, and promotion. However, with the dominance of technology in the field, proficiency in technology becomes crucial. Traditional marketers often lack tech skills, while modern counterparts sometimes disregard basic marketing principles. Marketers are divided between those prioritizing brand development and those emphasizing operational and performance marketing. Many CEOs and CFOs no longer consider marketing essential, demanding evidence of its positive impact on business. Brand marketers risk becoming marginalized unless they can demonstrate the business value of their efforts. While performance metrics can easily demonstrate their worth to the business, the organization's long-term health necessitates attention to the brand.

In this context, marketers must broaden their mission and expand their role to adopt new priorities such as building brands, managing brand reputation, contributing to business growth, and constructing platforms that sustain competitive advantage. Every company needs to establish these pillars, and marketers possess the capabilities and strengths to accomplish these tasks effectively.

Marketers require new skills, mindsets, and expertise development

To tackle the challenges of the Fifth Paradigm, marketers require a broader skill set encompassing both creativity and analytics. They should comprehend the scientific and technological aspects of marketing alongside its artistic element. Proficiency in brand building, differentiation, and reputation management remains crucial, as does a grasp of traditional marketing principles.

However, marketers must also familiarize themselves with emerging marketing areas and the scientific advancements providing novel tools. With technology reshaping the purchase process and sales funnel, understanding the dynamics of new purchasing channels is imperative.

Marketers must deeply comprehend their organization’s business model and illustrate how marketing influences business outcomes. They need to exhibit visionary, empathetic leadership. Curiosity and agility are invaluable qualities for marketers in the Fifth Paradigm.