Category: Journey

Categories
Journey

Digital influencers: how they impact digital marketing strategies in Brazil

Influenciadores digitais como eles impactam as estratégias de marketing digital no Brasil

Since prehistoric times, the human species has come together in communities with common goals – and this pattern remains to this day. Communication was one of the main starting points for the advancement of evolution. Through it, the different types of society were structured and standards of social coexistence were established. Today, we live in the era of real-time communication, of instantaneity, thanks mainly to the improvement of technology and greater access to it, reaching the phenomenon of digital influencers, which we will discuss later.

All this is the result of the search for new forms of social relations, structured around news and updated content, in a collaborative and complex environment, in a world of connected active individuals, who collectively produce knowledge and content.

Communication through the use of technologies, however, is not something very old in society. We can cite some examples, such as TV and radio. In these cases, however, communication takes place – or used to take place – from one to all. That is, from a single sender to multiple receivers. Since the emergence of these media, consumers have tried to maintain a dialogue channel with the media. Just as newspapers have a “Letter from Readers”, radio stations have always made room for listeners' calls. As technology evolved until the arrival of social media, this two-way street multiplied and gained another format.

The symbiosis between human beings and technology is already so great that it is rarely noticed, to the point where it is not possible to clearly discern where it begins and where it ends. This shows an incredible ability to adapt to new communication channels, which are emerging at an unprecedented speed.

These changes have impacted society in different ways, in business, consumption, and work, thus generating a new economic model and new challenges for companies. Parallel to the evolution of communication and society, marketing is also changing. Today, brands need to look at people as complete and complex beings, who have anxieties and concerns. Therefore, new values need to be incorporated into their messages: respect for differences, solidarity, transparency, interdependence, respect for others and the environment. Thus, within this context, new experiences are provided to touch the consumer's emotional side, thus naturally generating more trust and respect for him and society.

Read too: The 70 years of evolution of Marketing: from 1.0 to 5.0

All this leads to a more horizontal relationship model, through which consumers believe more in each other than in companies, the famous “word of mouth” as a reliable way of advertising. A more collaborative, innovative and authentic environment, in which people seek real values, involvement, feeling the brand with which they are interacting.

Relationships are increasingly direct, with people seeking to resolve their difficulties without relying on large institutions, such as governments or multinationals.  

Digital marketing: social media as a purchase decision tool for Brazilians

The rise of social media has empowered the exchange between consumers, thus making the purchase decision process more susceptible to third-party opinions than ever before. Added to this is the fact that social media naturally generate a feeling of proximity to people with common interests and provide emotional rewards, such as prestige and a sense of belonging.

The importance of these networks can be translated into numbers. According to the Comscore survey, released in March 2023, Brazil has more than 131.5 million active accounts on social media. Of this total, at least 127.4 million are unique users, with a monthly average of 46 hours of connection per person.

This creates a context in which there is a significant portion of the Brazilian population accessing digital media, which bring emotional rewards, while algorithms group people with common interests. This favors the creation of communities, which are consolidated as interactions, comments, shares, reactions, among other resources that disseminate opinions, propagate ideas and even information.

However, even though these communities establish more horizontal forms of communication, which give room to multiplicity, it is necessary to reflect on the emergence of users with a higher level of social influence.

Today, with social media, this influence gains numbers and impacts that were previously unimaginable. If only a select group of people were opinion makers, currently, these media transform ordinary people into digital influencers, capable of impacting up to millions of people, guiding behaviors and trends, in addition to creating players within the digital world.  

Understanding the particularities, complexities and influences of this new scenario is a vital issue for brands today. Understanding how this universe has been changing everyday life and the way people interact with brands has a direct impact on companies' marketing planning. In this sense, there are the challenges of keeping up with these changes in behavior, rethinking paradigms and mindsets without, however, losing sight of the essence of the brand.

Digital communication as a tool for more horizontal relationships with brands

It can be said that a new one has emerged, as a moment that demands courage from brands to review paradigms, question hierarchies, broaden horizons and reassess their relationships in a movement towards the future.

Increasingly, communication ceases to be just the set of actions that aim to make a message or advertisement common, and starts to add a set of platforms for exchanging information and establishing relationships. This revolution accelerated access to information, the sharing of ideas, and opened space for networking.

It is possible to identify how the maturation of the internet itself brought important innovations that reinforce the relational character of digital communication. This leads us to a more horizontal communication, which makes room for multiplicity.

The internet is the most incredible generativity tool ever created by man, because it allows the spontaneous generation of authorial, bidirectional and multidirectional content. 

Social networks played a fundamental role in this scenario, as they are more attractive and easy to use, and because they have a huge potential reach. This horizontal relationship not only materialized but also became the basis of communication and marketing today, proving that the real revolution does not happen when society adopts new tools, but when it adopts new behaviors.

This wealth of information exchange, as well as the ease of collaboration and the development of social relationships, challenges individualistic attitudes.

Today we live in a totally new world, which has been transformed by the connectivity and transparency provided by the internet, opening space for content with information on culture, entertainment, sustainability, leisure, that is, a space for originality and authenticity.

According to a survey carried out by RD Station, 61.5% of Brazilian social media users use these channels to search for information about brands and products. The same study also reveals that 42% of TikTok users in Brazil use the platform to enjoy and follow videos from brands and companies they like.

Read too: The Generation Gap – Marketing to Baby Boomers and Generations X, Y, Z, and Alpha

Influencers as a bridge between brand and consumer

What drives a person to follow an influencer? The answers are diverse, but there is a basic aspect: identification with the tastes and ideas transmitted. In addition, we can say that they are good storytellers – “storytelling” –, with narratives that facilitate this proximity to the public, often creating niche markets with media potential, directly influencing consumer behavior. This makes digital influencers from specific segments, with fewer followers, as important as those with a large audience.

Thus, an interesting phenomenon is observed. Regardless of the volume of official information available about a brand or product, social circles continue to be one of the main sources of influence for the consumer, thus demonstrating how the contemporary public orients itself based on the opinion of third parties, whether observing a 2 star rating about a product or watching a follow-up influencer say they didn't like the experience. This all trumps marketing communications and even personal preferences.

Many classify digital influencers as autonomous media, with a strong and upright image, built from great legitimacy in the digital environment. It is even common for this legitimization to happen through exposure of their own personal life, the sincerity of everyday life – and these characteristics attract the interest of brands, which take advantage of this relationship of emotion, love and respect, to strengthen the credibility of advertising campaigns with the influencers of your target audience.

Thus, it is possible to define these digital influencers as the “word of mouth 2.0”. After all, relying on the opinion of friends, family, close people has always been one of the most used ways when deciding on a purchase.

Influence is an intrinsic concept. Every day, we are exposed to ideas, opinions, ideologies and attitudes by different actors in society. History is littered with influencers. We can mention Christ, Socrates, Plato, Napoleon, Einstein, Gandhi, and more recent ones like Mandela, Lincoln, Obama and Steve Jobs. These diverse divergent and complex influences condition society to change habits and attitudes, in the construction of a social “ethos”.

The term digital influencer is recent, but the phenomenon itself appears before web 2.0 with the emergence of bloggers (“Bloggers”), albeit in a more restricted environment. Then came the vloggers (“Vloggers”), which were later replaced by “Youtubers” – with the popularization of YouTube. And, only in 2015, the term digital influencer was born, which arises from the need to classify some people who were impacting on several different social media platforms. In 2016, the Oxford dictionary – one of the most important in the world – made the term “Youtuber” official in its pages.

Increasingly, the web has become an environment for opinions and participation of consumers and digital influencers, who, in a way, create their audiences around specific opinions and tastes, making this feeling of belonging even greater, creating a bond of proximity.

Relationship brands x digital influencers

Digital influencers have their own individual characteristics. It is necessary to identify and classify them within this digital universe. We can point out five main types of influencers:

Celebrity: famous person with great reach, but not relevant to the brand theme;

Celebrity with relevance: famous person with full affinity with the brand, who has a good chance of impacting large audiences and converting them;

Authority: technical person, respected in a given subject;

Journalist: works in traditional media and has great impact because of it;

micro influencers: people with fewer followers, but with a well-defined niche market.

Working with digital micro-influencers is one of the already consolidated trends in digital marketing, due to the ease of applying more segmented actions, which enable a higher conversion rate, often at a lower cost, compared to other profiles.

This scenario also implies a great concern for brands regarding the impact that their actions can cause. The web has not only magnified this impact, it has also diversified the risks. All these relationship tips have to maintain the brand's positive image, its reputation and a set of feelings such as respect, trust and admiration.

This is a time when experience and interactivity are essential points in companies' digital marketing strategies and, more than communicating correctly, it is necessary to learn how to relate to your audience in this new scenario, encouraging them to multiply the transmitted message. After all, each impacted person can talk about your brand to their 100, 200, 1,000 followers, or millions of other people if it goes viral.

In other words, digital prints this force of sharing and viralization very well, resulting in a scenario with relevant characteristics for the growth of companies' adherence.

At a time when many brands are already positioning themselves in a different way to reach this potential, it is common to see them engaged in some social cause, sharing the same anxieties and concerns as their consumers, showing that, in fact, they know and treat them as a complete and complex being, with mind, heart and soul. This requires a lot of dialogue, and social networks and digital influencers have played a key role in this dialogue between brand and consumer.

Therefore, the best way to maintain this dialogue is by delivering interesting, relevant and useful content to a clearly defined audience. On the other hand, it is important that these contents are loaded with the company's identity, often telling stories – "storytelling—, creating even deeper connections. This leads us to believe that digital marketing should no longer be considered just synonymous with sales and metrics, but rather the main aspect of a company to gain consumer trust, capable of breaking the blockade of traditional advertising.

It is not possible to say that traditional media will end, but they will certainly share space with these new models, with different levels of participation, in a constantly changing scenario. Furthermore, the innovations brought about by digital technologies do not invalidate previous technologies, but bring a new meaning to communication processes.

According to the AdSpend study by IA Brasil in partnership with Kantar Ibope Media, in 2022, digital advertising in the country, which includes partnerships with influencers, moved R$ 32.4 billion, representing an increase of 7% compared to the previous year.

This new approach to marketing, which combines online and offline between brands and customers, complements machine-to-machine connectivity with person-to-person touch to strengthen consumer engagement. A scenario that favors the creation of new spaces and narratives for brands to communicate with their consumers in a more relevant and engaged way.

The evolution of marketing concepts

A connected world, the marketing mix concept has evolved to accommodate more customer participation. The marketing mix – the 4Ps – must be redefined as the 4Cs: co-creation “co-creation”, currency “currency”, community activation “communal activation” and conversation “conversation”.

In this approach, co-creation is the new strategy for product development, involving customers in the design, achieving better success rates. The pricing concept has also been evolving, moving from a static price to a dynamic one, based on market demand and capacity. The channel has certainly undergone major changes, the concept of point-to-point distribution has a great advantage in this era of sharing economy, played by companies such as “Airbnb”, “Uber” etc.

Likewise, promotion has also been changing, moving away from a unilateral relationship – with companies sending messages to consumers - to a more open environment for consumers to react to these promotions. The proliferation of social media is one of the factors that allowed this reaction, promoting the emergence of platforms such as “TripAdvisor” and “Yelp”, creating an ideal environment for this conversation between consumer and brand.

At the same time that the key concepts of traditional marketing are evolving, the journey that the consumer takes to buy the product is also changing. The best known and most used model was the AIDA: attention, interest, desire and action. This model has undergone several interpretations during the last few years.

The latest model was presented by Derek Rucker, from Kellogg School of Management, which proposes the model of the 4As: assimilation, attitude, action and new action. In this newer model, the interest and desire stages are simplified into attitude. A new stage, new action, is added, intending to track the consumer's post-purchase behavior. This path reflects a personal and direct funnel-like side.

He then proposes a new approach to the 4As, due to the changes that the connectivity era has brought to the 5As process, which would be: assimilation, attraction, argument, action and apology. In the pre-connectivity era, a consumer determined his attitude towards brands. In the age of connectivity, the initial attraction of a brand is influenced by the community surrounding the consumer. In the pre-connectivity era, the purpose was retention and repurchase. In the age of connectivity, purpose is the willingness to champion a brand.

To understand brands, customers now actively connect with each other, developing research and advocacy relationships. Depending on the trend of the conversation, the connection can strengthen or weaken the brand's appeal. He also points out that the new consumer path is not necessarily a fixed funnel. It can be a spiral, and not necessarily go through the 5As. He can skip categories.

The main objective of marketing campaigns is to lead consumers from assimilation to apology, making them develop a feeling of strong loyalty to the brand, reflected in retention, repurchase and defense of the brand before their friends, the famous “I recommend”.

To optimize your marketing campaign, this classification into three main sources of influence: self, others and external, is known as the POE Zone. The external influence comes from sources unknown to the consumer, they are messages through advertising and other forms of communication.

This influence is still manageable and controllable for brands. The influence of others also comes from the external environment, which are usually people from close circles, such as friends and family, in the form of word of mouth. We can add to this classification the systems online of evaluation. Despite the brands' efforts, this influence is difficult to manage and occurs through community marketing, in which companies need to promote environments for discussion between the company and the communities. Own influence, on the other hand, comes from oneself, the result of past experiences and interactions with the brand.

The average consumer is generally impacted by all three influences, varying from market to market. Despite the variations, it is possible to state that consumers today rely more on the influences of others.

In addition, a survey by MindMiners points out that 81% of respondents assume that they read the comments and opinions of other users before purchasing a product for the first time, and 71% of them fully trust the reviews. Another important data is the negative impressions. According to the survey, they are the ones that most impact the purchase decision: 83% admitted that derogatory comments tend to be more relevant than positive ones.

Read too: The influential digital subcultures: youth, women and netizens

New consumer needs and influencers with the power to redefine market practices

 The contemporary consumer has different needs from those consolidated by previous generations, such as sharing economy, instantaneity and integration omnichannel. Therefore, it needs to be impacted in other ways, including content marketing, customer relationship management strategy through social networks, intensification of the use of big data, among other things.

These new habits and technological advances brought new strategies in the marketing process. Today, the sale of products through virtual stores and subscription clubs is a reality, and brings agility and a completely different dynamic to the market. At the same time that these new forms of commercialization are more complex, they promote more competitiveness and, due to the possibility of covering a territory, also allow for greater business growth.

With this intensification of connectivity, relationships on social media and the speed of knowledge and/or information exchange have been directly impacting the way companies have been relating to their public. It's a very dynamic scenario, where everything is available in real time. They are new business models in differentiated narratives and fragmented, niche audiences, in environments stressed by the potential of different discussions/participations with different hierarchies of action.

The culture of niche communication and the creation of content strategies through the culture of participation and media convergence become premises for influencers to act, who in turn create a logic of content value to the point of making it relevant, shareable and engaged, reinforcing the ties between fan communities around these subjects on the network.

There is no doubt that digital influencers have redefined the practices and dynamics of contemporary markets by consolidating themselves as prominent figures in the digital environment. A 2021 Ibope Intelligence survey reveals that 52% of Brazilians who are on social media follow at least one influencer. However, it is worth reflecting: what does the “common user” absorb from these people? A survey by Invesp paints part of this, pointing out that 72% of consumers start to trust a company more after it is recommended by an influencer. Not only that. The survey also points out that 92% of respondents trust influencer reviews rather than traditional advertisements and celebrity recommendations.

And what explains this high power of influence? There is no single answer to this question. However, there are elements that help us understand this. As digital influencers have greater creative freedom, the message transmitted by them is naturally more original and authentic, thus increasing the chances of acceptance by followers.

However, this is far from meaning that the magic formula for brands is to start partnering with influencers. As with any other business decision, it requires strategy before, during and after the action, as well as thoroughly understanding why it makes sense for your business to partner with an influencer and, most importantly, understanding why it does. makes sense to your target audience.

Digital has brought us a world of data, however, it is necessary to transform them into information, from information to knowledge, from knowledge to insight, in order to arrive at a value for the brand. We are obese of information and anorexic of insights.

Categories
Journey

The influential digital subcultures: youth, women and netizens

subculturas digitais

Young people, women and netizens have been widely researched by companies, but generally as separate consumer segments. However, their collective strength, especially as the most influential segments in the digital age, has yet to be fully exploited.

In terms of size, each of these groups represents a significant portion of society. However, there is a broader aspect to be considered. There is a common thread that unites them: young people, women and netizens are the most influential segments in the digital age.

Read too: The 70 years of evolution of Marketing: from 1.0 to 5.0

It's no surprise that most subcultures are made up primarily of these three groups. In many parts of the world, they were considered minorities and marginalized by society.

In the past, authority and power belonged to elders, men and city dwellers. However, over time, the importance and influence of these three groups increased considerably. Indeed, subcultures began to influence the dominant culture, with its experiences and extensive networks of communities, friends and family.

What are subcultures?

Subcultures are groups or communities that emerge within a larger culture, presenting their own and distinct characteristics. They represent alternative forms of expression, identity and lifestyle that diverge from the dominant norms and values of the society in which they are inserted.

Subcultures are usually made up of individuals who share common interests, values, and beliefs. These groups identify and differentiate themselves through expressions such as fashion, music, language, behavior, lifestyle and, consequently, ideologies.

Subcultures can arise in different contexts, such as youth groups, art movements, urban tribes, and online communities. They provide a sense of belonging, providing a space where individuals can express themselves freely, meet people with similar interests and pulsate an identity of their own.

Subcultures play an important role in diversity, as they enrich the cultural landscape of a society, bringing different perspectives, values and ways of life. They contribute to cultural evolution and transformation by challenging conventions and making room for alternative ideas and trends.

With the advancement of technology and the popularization of the internet, digital subcultures gained strength and became influential in contemporary society. The internet provides a space where individuals can easily connect, regardless of their geographic location, and find a community that shares their passions and ideas.

Digital subcultures allow participants to express themselves freely, share information, debate, create content and interact with each other. These groups provide a sense of belonging and a supportive community where members feel understood and valued. In addition, digital subcultures can influence popular culture, set trends and shape behavior, thanks to their ability to rapidly disseminate information in the digital age.

Youth: acquisition of participation in minds

Youth plays a key role in setting trends for seniors, especially when it comes to fields of pop culture such as music, film, sports, cooking, fashion and technology. Older people are generally more closed to exploring these areas that are constantly evolving. To give you an idea, a survey conducted by Deezer, with Brazilian, American and European respondents found that we stop discovering new music at 27 years old, on average.

Young people are the trendsetters, the present-day consumers, who demand everything instantly. When it comes to trends, they are so agile that marketers often cannot keep up with them. The positive side of this is that these professionals can identify movements that will influence the market in the near future.

Younger generation consumers are often the first to test new products and are often the main target of marketing campaigns. We can call them early adopters, also known as early adopters. When young people embrace new products, they often hit the mass market with success.

According to a 2014 United Nations Population Fund (UNFPA) report, there were 1.8 billion young people between the ages of 10 and 24, the highest number in human history, and that number continues to grow. About 90% of them live in developing countries. They are facing many challenges in realizing their potential in terms of education and careers, while also shaping social dynamics with their friends.

The truth is that young people are not afraid to experiment. They test innovative new products and services that older folks consider too risky.

The aim of brands is to be relevant to young people at an earlier age and thus gain access to their ever-depleting wallets. Today's young people will soon be the main target audience and probably the most profitable customers. Strategies that privilege them tend to have greater chances of success.

While many youthful trends end up being fleeting, some evolving trends manage to catch up with mainstream culture. The whole universe of social media such as Facebook, Instagram and Twitter started as a trend among young people. Similarly, music streaming services like Spotify, Deezer and Apple Music were introduced to the market mainly by young people.

Young people are agents of change. They react more quickly to the transformations that are taking place in the world, such as globalization and technological advances. They are among the main drivers of change in the world.

All these roles – early adopters, trendsetters and change agents – lead to the conclusion that young people are the key to winning the minds of mass market consumers or mainstream. Convincing young people is an important first step if brands want to influence customers' minds.

Women: market share growth

The female market is a logical target for marketers. In addition to being huge, this segment also has a unique profile.

The intrinsic differences between men and women have been the subject of study for both psychology and marketing. Several experts presented their views on marketing to women. Many products, services and marketing campaigns have been developed especially for them.

The influence that women exert on other people is defined by the activity they perform. We can segment the female market into four categories: conforming housewives, housewives planning to work, women with jobs, and women with careers.

Simply put, women's world revolves around work and family. The dilemma they often face is choosing between these two alternatives or finding a balance between them. Women are intrinsically better at managing complex, multifaceted assignments, whether at home, work, or both.

In general, there are three roles that women play: information gatherers, holistic shoppers, and household managers.

As information gatherers, women's decision-making process differs from men's. While men's path to purchase is short and straightforward, women's resembles a spiral, often going backwards to gather new information and reevaluate whether taking the next step is the right decision.

Not only do women do more research, they also talk more about brands. They seek the opinions of friends and family and are open to receiving help from others. For marketers, the information-gathering nature of women has its benefits, indicating that all customer communication and education campaigns are not in vain.

As holistic shoppers, the fact that their spiral buying process has more touchpoints means they are exposed to more factors to consider. They tend to evaluate everything before determining the true value of products and services. Certain categories are evaluated by women not only for themselves, but for the whole family.

Women also explore more brands, including less popular ones that they believe are more valuable. Therefore, they are more confident in their choices, are more faithful and more inclined to indicate and recommend to their community.

As household managers, because of all these qualities, women are in fact the financial directors, supervisors of purchases, and managers of the family's assets. The issue is that the role played by women in the home is spilling over into the workplace.

Women's influence at home and at work is growing. As information gatherers, holistic shoppers and home managers, women are critical to gaining market share in the digital economy. To access even larger markets, brands will need to go through women's comprehensive decision-making process.

Read too: The Generation Gap – Marketing to Baby Boomers and Generations X, Y, Z, and Alpha

netizens: expansion of participation in hearts

The term “netizen” combines the words “citizen” and “internet”, referring to people who use the internet in an active, participative and engaged way. It was first coined in 1990 by Michael Hauber.

You netizens they are considered the true citizens of democracy, as they want to be involved in the development of the internet. They see the world horizontally, not vertically. Internet content is created and shared from person to person. They believe in a total democracy, not putting so much focus on governments.

However, not all internet users can be considered netizens or citizens of the internet. According to this segmentation, there is a hierarchy of Internet users, which includes inactive, spectators, participants, collectors, critics and creators. The collectors, critics and creators are the ones that best characterize the netizens, as they actively contribute to the internet, not just being limited to passive consumption.

Their role in influencing is tied to their desire to always be connected and contribute. You netizens they are social connectors.

There are many ways to connect socially on the internet, with social media services and instant messaging apps such as Facebook, WhatsApp, Instagram and LinkedIn being the most popular. At first glance, online communities may look like networks of strangers, but on the inside, they are networks of trusted friends.

You netizens they are also expressive evangelists. We can see this with the rise of brand advocates. In the internet world, we know the social factor: followers, fans and friends. When they are excited and committed to a brand, netizens become the social factor. They turn into brand advocates or worshipers.

Brand advocates are also storytellers, spreading news about brands across their networks. They tell authentic stories from the customer's point of view, a role that advertising will never replace. Like the netizens they are more visible than other internet users, they wield enormous influence, often with large followings, fans and friends.

You netizens are also content contributors. Your work makes life easier for other users. With the use of tags, information is better organized and the search for quality content becomes easier.

However, the most important contribution is the creation of new content, which can take different formats, such as articles, videos, e-books, infographics, games and even movies. Independent authors create web pages, video channels and post commercials on YouTube.

With the constant creation of new content, the internet is becoming increasingly rich and useful. This not only increases the number of netizens, but also the value of the internet. The growth of these communities, based on emotional and mutually beneficial connections, is critical to expanding a brand's share in the hearts of consumers. When it comes to spreading the message through community word of mouth, netizens stand out as the best amps. If the brand message gets that group's stamp of approval, it will flow along social connections naturally.

Reflection

How can your brand gain a greater share of minds by leveraging the roles of early adopters and youth trendsetters?

How can your brand increase market share by leveraging women's influence?

How can your brand gain a greater share of consumers' hearts through netizens What do you admire?

Categories
Journey News

The Generation Gap – Marketing to Baby Boomers and Generations X, Y, Z, and Alpha

gerações marketing

For the first time in history, five generational groups coexist in the consumer market: the baby boomers, generations X, Y, Z and Alpha. Given this context, a major challenge faced by marketing professionals around the world is to understand the consumption behavior of these generations, and use these patterns to create products according to each need and desire.

Generational slice is one of the most basic and popular forms of market segmentation. The premise of this logic is that people who were born and raised in the same period experienced the same significant events and therefore share the same sociocultural experiences and are more likely to have the same set of values, attitudes and behavior.

As a result, each generation is shaped by a different environment and life experience. They also have their distinct preferences and attitudes towards products and services. Despite understanding their different needs, most companies are not well positioned to serve the next generation that will become part of their audience.

The selection of target markets also creates a dilemma, as most of the consumer power is tied to the brands that serve the baby boomers and generation X. On the other hand, in this same context, most of the value of brands is created when they are endorsed by Y and Z – with the factor of influence and digital knowledge. And, most importantly, Generations Y and Z are starting to influence parents baby boomers and Generation X in many purchasing decisions.

That said, understanding these groups is precisely serving different audiences in a personalized and assertive way. Companies need to find a balance between two objectives: maximizing value creation in the present and positioning their brands for the future gradually, with planning.

How the generations differ

First, it is necessary to understand the temporal cuts of each generation, since each one of them refers to those born in a certain interval of years.

  • Generation baby boomers: born between 1946 and 1964 (currently aged 59 to 77)
  • Generation X: born between 1965 and 1980 (currently aged 43 to 58)
  • Y generation (millennials): born between 1981 and 1996 (currently aged 27 to 42)
  • Generation Z: born between 1997 and 2009 (currently aged 14-26)
  • Generation Alpha: born between 2010 and 2025 (currently up to 13 years old)

It is important to make some considerations about these divisions. These dates of birth vary greatly depending on the sources and there is no consensus on them. These are just trends that identify a large part of the group, but which cannot be generalized to all those born in these years.

baby boomers – an aging economic powerhouse

You baby boomers they are a generation born between 1946 and 1964, the post-World War II period. They were named so due to the significant increase in the birth rate during this period in the United States. This generation grew up in a time of great economic prosperity and technological advances, but also lived through important moments in history, such as the Cold War, the Vietnam War and the struggle for civil rights.

You baby boomers they are often associated with traditional values such as hard work, dedication to family and loyalty to the company. It is considered the generation that helped shape the modern world, being responsible for significant advances in areas such as technology, medicine and the achievement of civil rights. They were also the first people to grow up with television and advertising, which had a huge impact on their culture.

many concepts anti-establishment, such as social activism, environmentalism and the lifestyle hippie, emerged at that time. It is also the first generation to conquer the “right to be young” and the freedom to hit the road, listen to rock'n'roll and enjoy great music festivals — which inspires young people to this day!

Because of their sheer size and because of the postwar economic boom at the time they were growing, the “boomers”, as they are also called, became one of the greatest powers of the economy and entered the Brazilian job market in the 70s. Over several decades, they were the focus of marketing professionals, before being numerically separated from the Y generation.

Currently, because they have a longer and healthier life, they postpone retirement and prolong their professional career beyond the age of 65.

On the other hand, for the market, it is important to be aware that the boomers currently concentrate much of the consumption power and the main purchasing decision-making around the world, both in charge of countries and large companies. They are heavily criticized by younger generations for their lack of willingness to adopt new technologies. They also have a preference for brands that are already established in the market. In general, they don't like sudden changes in their lives.

Generation X – the middle children who lead

Generation X was born between 1965 and 1980 and grew up in a period of great social, political and technological changes. It is often associated with values such as independence, flexibility and adaptability. Here in Brazil, it was strongly marked by the repression of the civil-military dictatorship. Therefore, it does not have the same optimism as boomers.

Furthermore, Gen X flourished at a time when technology was advancing rapidly but not yet as ubiquitous as it is today. They remember a time when telephones were landlines and letters were the main means of communication. They grew up watching music videos on MTV and listening to cassette tapes on walkman. It was also the first group to experience the emergence of the Internet and the transition to the digital age. That is, from the rise and fall of movie rental companies, the rise of DVD to the arrival of streaming that we know today.

As a result, it is often described as a generation of problem solvers and entrepreneurs. They had to adapt to rapid changes in the job market and learn to deal with economic uncertainty. Many of them started their own businesses or sought more flexible work opportunities and, today, they represent a large part of entrepreneurs, including startups. According to the Federation of Industries of the State of São Paulo (Fiesp), 38% of Brazilian startups are from people over 45 years old.

Generation X is also often associated with a sense of irony and skepticism towards institutions and authorities. These people grew up during the punk rock and grunge era, and their pop culture reflected this attitude, therefore valuing diversity and inclusion, having grown up at a time when discussions of equality and civil rights were very pronounced.

Today, many Gen Xers are at the peak of their careers and are leaders in their industries, with an average work experience of 20 years. They are facing new challenges, such as balancing work and personal life, caring for aging parents and planning for retirement. However, Gen Xers continue to be a significant force in society and their influence is felt in many areas of modern life.

Generation Y – the millennials who ask “why?”

Generation Y has been the central discussion in recent years. Also known as millennials, is a generation born between the years 1981 and 1996. They grew up in a period of rapid technological and social change, often being described as a connected, collaborative and idealistic generation.

Millennials grew up in a more globalized and digital world than Millennials, with access to technologies such as the internet and smartphones from a very young age, they value instant communication and connecting with others, and many of them stand out for being highly proficient in technology.

As a result, it is often associated with values such as creativity and innovation. They are noted for their ability to think outside the box and find creative solutions to problems. Many of them are also entrepreneurs, looking for new ways of working and unconventional career opportunities.

One of the best-known studies on Generation Y was carried out by Box 1824, which points out that, with the arrival of millennials to the market, the desire to be young became an obsession. The survey points out that Generation Y has become a reference for younger people and an inspiration for older ones, thus demonstrating the high power of influence in their consumption over other people.

In Brazil, the millennials they were born in the context of re-democratization (post-civil-military dictatorship) and economic and political instability, later experiencing a moment of consolidation of these aspects, especially with the emergence and implementation of the Real Plan.

Generation Y also has in common the appreciation of diversity, inclusion and social justice. They grew up at a time when awareness of equality and civil rights is more present, see the experiences of the previous generation, and many of them are involved in voluntary activities and social causes.

Because of their higher educational attainment, diversity, and wide access to knowledge, Millennials are more open-minded and idealistic. She questions everything, which makes her more susceptible to conflict in the workplace with older generations who expect her to conform.

Millennials share stories of complicated professional environments. As a result, many found themselves creating their own companies. Thanks to this experience of strong competition at work, they tend to clearly separate their personal and professional lives.

Generation Z – the first digital natives

Now, more than ever, marketing is turning its attention to Gen Z. You may not have realized it, but Gen Y is already getting older, and marketing needs to get to know better the young people who are coming into the market and dictating behavior. of the brands.

Descendant of generation X, generation Z is born between 1997 and 2009. In the United States they are also known as centennials. They grew up in an even more connected and digital world than the Y, and are often described as a generation that values diversity, creativity and flexibility.

A large part of her witnessed the financial difficulties of her parents and older siblings, so she is more financially conscious in relation to Y. Tends to save money and consider financial stability as an essential factor in her career decisions.

Born when the internet had already become mainstream, are considered the first digital natives, as they grew up with smartphones, tablets and social media included in their routine from an early age. It is a generation that is always connected, ready to access information and communicate with others in real time. They continuously consume content across multiple screens, even on social occasions. What's more, they see no border between the Off and the online.

In Brazil, this generation is born at a time of prosperity, economic growth and the search for social justice. However, in their teens, they are already going through the political and economic crisis after the 2014 presidential elections. It is these teenagers who engage in movements to contest the government — either on one side or the other — and engage politically.

Therefore, they have a strong critical sense, which becomes striking in their identity. It is with this criticality that they see the crisis in Brazil, face the economic recession and seek answers to improve the country's situation, without running away from responsibility.

Empowered by social media, Generation Z records everyday life on their personal profiles in the form of photos and videos. However, unlike Y, which is idealistic, Z is pragmatic. While Y likes to post curated and filtered photos of themselves for personal marketing purposes, Gen Z prefers more authentic and real versions. Therefore, they repel brands that disseminate edited images that are too good to be true.

Like Generation Y, Generation Z is very concerned about social change and environmental sustainability, and gives preference to brands that share these values. In addition, she is passionate about making a difference through volunteering and expects her employers to provide platforms that allow her to do so.

According to a survey by the Think With Google, 85% of Gen Zers said they were willing to donate some of their time to a cause. Another interesting study on this group is from Box 1824, which points out that 63% from generation Z defends every cause linked to people's identity, that is, gender, ethnicity and sexual orientation, for example.

In addition, this generation has a very fluid identity. Don't try to define them or put them in boxes - they are whatever they want to be, in that moment, in that context. They are even more plural and dynamic than generation Y and, therefore, diversity and inclusion are concepts intrinsic to their identity and their conception of society.

Currently, generation Z already represents a numerically larger group than generation Y on the planet. In 2025, it will make up most of the workforce, thus becoming the most relevant consumer market for products and services.

Generation Alpha – the children of millennials

The Alpha generation is the youngest, born between the years between 2010 and 2025. They are children of parents from generations Y and Z. Name given by Mark McCrindle, the name based on the Greek alphabet represents an entirely new generation, which will be shaped by technological convergence. They are not just digital natives, they are strongly influenced by the behavior of their parents and older siblings. The launch of the first iPad marked the emergence of this generation in 2010.

The characteristics of the Alpha generation are largely shaped and influenced by the parenting style of the Generation Y parents. Having married at an older age, the Y place greater emphasis on raising and raising children. It also educates children about money and finances from an early age. It's a well-educated and tech-savvy group, but also inclusive and sociable.

This generation is born into a world where Artificial Intelligence (AI), automation, voice command and robotics are becoming more and more commonplace, which could have a big impact on their future.

Read too: What can companies learn from the new Artificial Intelligence (AI): ChatGPT and Bard?

In an interview with Grupo Padrão, Fernanda Furia, master in psychology of children and adolescents, says that the Alpha generation will be the protagonist of the beginning of an affective relationship between human beings and machines.

While Alphas are still very young, it's important to consider the impact this generation could have on the future. Today, they do not have great purchasing power, but they already have a strong influence on the spending of other generations. A Google search shows that, 74% from parents millennials include the Alpha generation children in household decisions. Another report from Wunderman Thompson points out that 55% of kids in the US and UK would like to buy things their influencers use. So it's only a matter of time before they become the global focus of marketers.

The life stages of the five generations

Understanding what is essential for the five generations requires analyzing the stages they go through during their lives. In general, there are four stages in human development, named Fundamental, Frontal, Fostering and Final. Each spans about 20 years, and as you move from one to the next, there is a significant change in your life's goals and priorities.

Fundamental: the focus is on learning. During the first 20 years of life, the individual is exploring the environment and adapting to it. Acquires knowledge and skills not only through formal instruction, but also through friendships and other social relationships. Stage of searching for one's own identity and for a reason for being.

Font: during the second 20-year period, the transition from learning to work begins, as you begin to earn a living and build a career. At this stage, health is at its peak, there is a greater willingness to take risks and enjoy life to the fullest. It is also at this stage that commitment to romantic relationships begins.

Promotion: the individual begins to stabilize and build a family. The tendency is to return to a healthier lifestyle after a period of increased stress. He also spends more time taking care of the evolution of others. At home, the focus is on parenting and family life in general. At work, the emphasis shifts to mentoring and training younger generations. Giving back to society becomes a key objective at this stage.

Final: the person tries to adapt to old age and stay happy. The main objective is to take care of declining health and social relationships. The focus becomes enjoying life, starting new activities that are rewarding and purposeful.

You baby boomers and Generation X have been following similar trajectories in their life cycles. Generation Y, on the other hand, has followed a more different trajectory. Its members reach traditional life milestones, such as marriage and the birth of children, at a more advanced age. It is a concession they make to reach goals earlier, especially in their professional careers. As a result, it progresses from one stage of life to another at a greater speed compared to other generations.

Generation Z and Alpha are also believed to have shorter life stages, adopting an earlier mature mindset as a result. These shorter life stages have profound consequences on the approach to marketing. Serving the Z and Alpha generations – the two most important of the next decade – is not just a matter of applying technologies, but using technology to enable human-centric solutions.

Read too: The 70 years of evolution of Marketing: from 1.0 to 5.0

These two younger generations will be catalysts for Marketing 5.0, which is an integration of Marketing 3.0 and Marketing 4.0. They are enormously concerned about how technology can empower happiness. Companies that are able to gain the trust of generation Z and Alpha will succeed in the competition of the Marketing 5.0 era

Reflection

Which generations does your company serve today? Do you fully understand their preferences and behaviors?

Is your company well positioned for the future? In other words, are you preparing your organization to serve digital natives – Gen Z and Gen Alpha?

Categories
Journey not categorized

The 70 years of evolution of Marketing: from 1.0 to 5.0

marketing 1.0 ao 5.0

Marketing evolves at the same speed as generations, communication and the needs of consumers and the market advance. It took nearly 70 years for marketing to evolve from product focus to human centricity.

In general, the transformation of marketing has accompanied the increasing changes in technology and digitalization, which have transformed the way people communicate, interact and consume products and services.

For decades, however, various concepts have withstood the test of time. Despite the “traditional” nature, for example, the concept of segmentation and selection of target markets, positioning and also the model of the 4P's – product, price, point of sale and promotion – continue to be universal landmarks for communication professionals.

Some of the major changes that occurred in marketing during this time include:

Traditional advertising era: In the 1950s and 1960s, traditional advertising was the main form of marketing. Companies invested in advertisements in newspapers, radios, TVs and billboards to promote their products and services.

Marketing of relationship: In the 1970s, the concept of relationship marketing emerged, based on building lasting relationships with customers, rather than simply promoting products.

Targeting Marketing: In the 1980s, segmentation marketing then became even more popular, and companies began to segment their target audience based on demographic, geographic and psychographic characteristics.

Digital marketing: Fast forward to the 1990s, digital marketing began to emerge with the advent of the internet. Companies began to create websites and use email marketing to communicate with their customers.

Content Marketing: In the 2000s, content marketing became a popular strategy. Companies started creating high-quality, relevant content to attract and engage their customers.

Marketing on social media: After that, then, more directly in the last two decades, with the creation of social networks, marketing became even more important, and companies began to use platforms such as Facebook, Instagram, LinkedIn, Tik Tok and Twitter to connect directly with your audience.

Influencer Marketing: In the same way, still at the turn of social networks, influencer marketing has become another very popular strategy. In this case, companies began to work with digital influencers to promote their products and services.

Understanding these changes makes all the difference when it comes to outlining strategies, objectives, goals and actions in your company. Thus, your actions will be more assertive, more likely to bring significant returns to your business.

Read too: Mental sales triggers: what are they and how to use them?

How has Marketing evolved over the years?

Marketing has evolved from product-centricity, which we call marketing 1.0, to consumer-centricity, called 2.0. Then he advanced to human-centricity, which we classify as marketing 4.0. Now, marketing as we know it is involved in the challenges that technology has brought to humanity: marketing 5.0.

These concepts are based on books written by Philip Kotler, one of the main authors and scholars of modern marketing and a reference for professionals in the field.

So, understand this division into stages of evolution as a marketing guideline for those companies that want to adapt to changes in the world and succeed in the market.

Marketing 1.0

Marketing 1.0 is a concept that refers to the first phase of modern marketing, which emerged in the 1950s and 1960s. The first phase always paralleled the industrial era, in which products were relatively basic and standardized. At that time, marketing was product-centric, that is, companies focused on producing and promoting their products without regard to the needs and desires of consumers.

Marketing 1.0 was marked by the mass approach, where companies used advertisements in mass media such as newspapers, radio and TV to promote their products to as many people as possible. This approach was based on a view that consumers were passive and simply absorbed the advertising message without questioning or evaluating its relevance.

The concept was to produce on a large scale in order to lower production costs. Then they were sold as best they could to anyone who bought them. Companies used advertising messages based on rational and logical arguments to persuade consumers to buy their products. The quality, technical characteristics and advantages of the products were the main focus of advertising messages.

In addition, marketing 1.0 was marked by the lack of interaction between companies and their consumers. Companies produced and promoted their products without considering the specific needs and desires of consumers.

We can illustrate this phase with Henry Ford's famous phrase: "A car can be any color, as long as it's black".

However, despite its limitations, marketing 1.0 was a fundamental starting point for the evolution of modern marketing. It allowed companies to increase their visibility and sales through mass advertising campaigns, and paved the way for the evolution to marketing 2.0, then already customer-centric.

Marketing 2.0

With the emergence of the information age, customer knowledge and satisfaction have become relevant for brands. With that, the marketing task was no longer so simple, the relationship became more focused on the individuality of the target audience.

Marketing 2.0 is a concept that refers to the evolution from product-focused marketing to customer-focused marketing. It is a customer-centric approach that recognizes the importance of ongoing dialogue between companies and customers, and seeks to create lasting, positive relationships for them. This approach can be highly effective for companies looking to stand out in competitive markets and meet the demands of increasingly demanding consumers.

In this context, some marketing and advertising channels emerged with the possibility of public segmentation, such as specialized magazines, cable TV channels and radio and TV programs for certain audiences.

Companies now need to listen and respond to consumers' needs and wants, rather than simply promoting their products.

This means that companies must focus on building long-term relationships with customers rather than just selling products. This involves understanding customers' needs and wants, creating products and services that meet those needs, and engaging in an ongoing dialogue with customers to ensure their satisfaction.

Furthermore, marketing 2.0 is results-oriented, measuring the effectiveness of marketing campaigns based on metrics such as customer engagement, customer satisfaction and customer retention. This allows companies to adjust and optimize their marketing strategies to meet changing customer needs and wants.

However, marketing evolves at the same speed as society, communication and the needs of consumers and the market. The importance of values and sustainability are directly linked to the success and future of an organization. And it is in this context that Marketing 3.0 emerges, where it treats people as complete and complex beings, with mind, heart and soul. Who has anguish and worries like everyone else.

Marketing 3.0

Marketing 3.0 is an evolution of Marketing 2.0, which focuses on creating customer value and promoting a better and more sustainable world. This concept emerged in the mid-2000s in response to cultural and social changes that were taking place in society.

Marketing 3.0 is based on the idea that companies should take a more humane and socially responsible approach to their business. Rather than just creating products and services that meet customer needs, companies must focus on creating value for the customer, society and the environment.

After all, consumers are not a large homogeneous mass, nor a target to be reached. They are human beings, with all their complexity and uniqueness, with values behind their actions and behaviors.

This means that companies need to be more aware of their social and environmental responsibility and incorporate these concerns into their business strategies. Companies must be able to communicate to their customers how they are contributing to a better world, in addition to providing high quality products and services.

In marketing 3.0, companies must work in partnership with their customers, rather than simply promoting their products. Companies must be able to understand and meet their needs, creating customized solutions and working together to achieve common goals.

Furthermore, Marketing 3.0 calls for a more holistic and integrated approach to marketing that takes into account not only the technical and functional aspects of products, but also their emotional and spiritual dimensions. And brands need to position themselves differently, they have to show that they are doing their part and that they share the same anxieties and concerns, that they really know their consumers. For this, it is necessary to clearly define the identity of the brand and strengthen it in the construction of an image with meaning incorporated into the vision and values of the company.

At its apex, marketing 3.0 is a combination of three concepts, which we call the 3Is, identity, integrity and image. The result is not achieved completely without these three points. The brand is useless if it only articulates a positioning. She may have a clear image, but not necessarily a good one. And positioning may just be a claim to consumers. Actions are worthless if the '3Is' are not complete and in tune.

And, with the internet and digital marketing already on the scene, this consumer gains voice and protagonism to influence brands. This concept was not only consolidated, but also expanded, with the increase in people's power of communication and the importance they attach to sustainability and social correctness, added to the capacity for dissemination and persuasion of social media – this is what we are calling marketing. 4.0.

Read too: How to build an effective organic email marketing list

Marketing 4.0

Marketing 4.0 marks the transition from marketing to the digital economy. Nothing that characterizes Marketing 3.0 is lost — however, now, technology is much more present in people's lives, in all their spheres, in all their relationships. This horizontal relationship not only materialized but also became the basis of communication and marketing today. Consumers have turned to word of mouth as a more reliable form of advertising.

This occurs precisely because the new reality of the internet, with all the strength of its relationship networks, proves the importance of thinking about consumers' feelings as a way to consolidate image, reputation and, consequently, results. The impact is direct in the decisions of the communication areas of a company.

Marketing 4.0 is based on the idea that companies must be present at all customer touchpoints, from product discovery to the after-sales experience, taking advantage of the opportunities offered by digital technology. This concept is called Omnichannel, or Omnichannel.

This means that companies need to be able to deliver personalized and relevant customer experiences in real time. Companies must use data and advanced analytics to understand customer needs and wants and provide customized solutions for each individual customer.

In Marketing 4.0, companies must use technology to create an emotional connection with their customers. Businesses can leverage advanced technologies like augmented and virtual reality to create immersive and exciting customer experiences that allow them to experience products and services in a whole new way.

In summary, Marketing 4.0 is a customer- and technology-centric approach that seeks to provide personalized and relevant experiences for customers across all touchpoints, taking advantage of the opportunities offered by digital transformation.

The Covid-19 pandemic has accelerated the digitalization of business. With the establishment of lockdowns and physical distancing policies, both markets and marketers have been forced to adapt to this new digital and contactless reality. This period was not only a moment of digitalization of companies, but also of reflection on their role in the world. If Marketing 3.0 had already raised the need to take a stand on the world's problems, now Marketing 5.0 reinforces this issue, but now intersected with the power of technology.

In the migration to Marketing 5.0, what happens is that these technologies need to turn to the good of humanity. Marketing 5.0 brings together the human-centeredness of Marketing 3.0 and the technological empowerment of Marketing 4.0, but adds concern for creating a more inclusive and sustainable society.

Marketing 5.0

Marketing 5.0 materializes against the background of three major challenges: the gap between generations, the polarization of prosperity and the digital divide.

It is the first time in history that five generations living together on the planet have contrasting attitudes, preferences and behaviors. Marketers will also be faced with chronic inequality in an imbalance in the distribution of wealth, which leads to market polarization. Furthermore, we will need to find a compromise between those who believe in the potential brought by digitization and those who do not.

What is Marketing 5.0

By definition, it is the application of technologies that mimic human behavior to create, communicate, deliver and enhance value throughout the customer journey.

One of the crucial themes is what we call “next tech”, a group of technologies used to emulate the capabilities of the human marketer. This includes AI, NLP, sensors, robotics, augmented reality (AR), virtual reality (VR), internet of things (Iot) and blockchain.

Some of these technologies may seem far-fetched and even intimidating to marketers, but we're starting to realize just how accessible – both in terms of availability and cost – they've become in recent years.

The concept of Marketing 5.0 is tool-neutral. Companies can implement their methods with any hardware or software available on the market. The bottom line is that companies need marketers who understand how to design a strategy that applies the right technology to the various marketing use situations.

Despite the in-depth discussion about technology, it is important to keep in mind that humanity must remain the central focus of marketing 5.0. The goal is to create a new frictionless and convenient customer experience (CX). For this, companies need to create a symbiosis between human and computer intelligence.

How technology can supercharge marketing

The rise of social media marketing and search engine marketing – as well as the exponential growth of e-commerce – has introduced marketers to the benefits of digitization, but marketing in the digital context is about much more than just moving customers away. for digital channels. Technology can revolutionize the way marketers do their jobs, such as:

– Make more informed decisions based on big data;

- Predict results of marketing strategies and tactics;

– Bring the experience of the digital context to the physical world;

– Increase the ability of frontline marketers to deliver value;

– Accelerate marketing execution.

The five components of Marketing 5.0

marketing 1.0 ao 5.0
  • data driven marketing

Data-driven marketing is the activity of collecting big data data from various internal and external sources and using it in decision-making, as well as creating a data ecosystem to guide and optimize marketing decisions.

  • agile marketing

Agile marketing consists of employing decentralized and multidisciplinary teams to rapidly conceive, design, develop and validate products and marketing campaigns. In a scenario that has increasingly constant and rapid changes, companies must be agile to respond quickly to the market.

  • predictive marketing

Predictive marketing is the process of creating and using predictive analytics to predict the results of marketing activities even before launch.

  • contextual marketing

Contextual marketing is the activity of identifying, profiling and providing consumers with personalized interactions through the use of sensors and digital interfaces in physical space.

  • augmented marketing

Augmented marketing is the use of digital technology to improve the productivity of the marketer who has direct customer contact. The technologies employed, such as chatbots and virtual assistants, mimic the human being.

Technology for humanity

Marketing 5.0 is based on the anthropocentricity of Marketing 3.0 and the technological power of Marketing 4.0. It starts with mapping the customer journey, identifying which marketing technologies can add value and improve the performance of the human marketer.

Companies applying Marketing 5.0 need to act on data from the ground up. Creating a data ecosystem is the prerequisite for implementing the practical uses of Marketing 5.0.

All of these execution elements require enterprise agility to provide a real-time response to market changes.

But understand that this adaptation does not happen overnight, because it requires changes in your brand's culture and behavior. In our journey of knowledge, we will provide different content to help you make the best decisions to adapt to Marketing 5.0.

Reflection

What Marketing do you consider your company to be in?

Does the implementation of digital technologies in your company go beyond social media marketing and e-commerce?

What are the advanced technologies that you think would add value to your company?