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Marketing has evolved over the centuries, as though it has undergone a metamorphosis, much like a caterpillar transforming into a butterfly. What began as rudimentary trade promotions has blossomed into a sophisticated, ever-evolving force that shapes and responds to the rhythms of society. Today, marketing is not just about selling products—it’s about telling stories, forging connections, and igniting change.
Table 1. Evolution of marketing and strategic thinking
1950s - Focus on commodities | 1950s-1970s -Marketing + strategy | 1980s-'90s -Marketing strategy + services | The new millennium -Relationships + internet + social media |
Commodities | Corporate strategy | Competitive strategy | Delta model |
Consumer items | Strategic management | Competitive advantage | Permission and interruption marketing |
Mass production | SWOT analysis | 5 forces model | Social media |
Brand management | Product differentiation | Value chain | Customer lifetime value |
Distribution channels | Market segmentation | Service mix 7Ps | Buzz marketing |
Marketing research | BCG matrix | Integrated marketing communication (IMC) | Viral marketing |
Printed advertising | GE matrix | Brand equity | Customer equity |
Radio advertising | Product life cycle | Brand identity | 3Vs model |
Market surveys | Globalisations of markets | ||
Aided recall | Experimental marketing | ||
Marketing mix | |||
4Ps |
Source: Pellegrino, A. (2024) Decoding Digital Consumer Behavior, Bridging Theory and Practice.
The New Millennium - Relationships, Internet, Social Media
The turn of the millennium marked a seismic shift in marketing philosophy. The growing importance of customer loyalty and service excellence led to the rise of relationship marketing models designed to secure long-term revenues.
Customer Lifetime Value (CLV)
Introduced by Mulhern (1999), CLV emphasises upfront investments to build lasting customer relationships, prioritising loyalty and repeat business over short-term profits. This model has proven importance for technology giants like Samsung and Apple.
Common mistakes in calculating CLV include using the wrong formula, ignoring future value, not segmenting customers, limiting time frames (short period insights), assuming uniform spending patterns, subtracting acquisition costs from CLV prematurely (e.g. net CLV), overlooking customer feedback and not differentiating customer types.
Customer Equity
Customer equity is defined as the future income potential of a company’s customers. Companies with high customer equity command higher valuations, emphasising the strategic importance of nurturing valuable customer relationships.
It is calculated by summing the customer lifetime values (CLV) of all customers, to provide insight into the expected profitability and future revenue potential of the business. Customer equity calculation is used to forecast long-term profitability by including immediate sales and future revenue from existing clients. This strategy assists with strategic resource allocation, predicting future cash flows, measure customer equity score for competitive advantage indications, and highlights the overall marketing effectiveness of customer equity - value equity, brand equity, and retention equity.
The Financial Times' reported on Costco's Netflix moment where Costco's implementation of membership card scanners at store entrances has led to a significant increase in membership sign-ups, with some locations experiencing low double-digit growth. This initiative is being compared to Netflix's strategy of limiting password sharing, which resulted in a substantial rise in paying subscribers. By converting non-paying customers into members, Costco enhances its customer equity—the total combined customer lifetime values—which can lead to higher company valuations. Financial Times reports this development to serve as a cautionary example for inflating higher-rated stocks, highlighting the importance of effectively monetising customer relationships to justify elevated valuations.
Permission Marketing
Godin (1999) revolutionised marketing by contrasting ‘interruption marketing’ with ‘permission marketing.’ The latter prioritises consumer consent before engagement, leveraging tools like content, SEO, and social media to build trust and build long-term connections. As intrusive methods lose cost-effectiveness, permission marketing has become indispensable in the era of increasing internet traffic and penetration.
An example of permission marketing include YouTube enabling users to subscribe to channels and receive notifications about new content. This opt-in feature ensures that users only receive updates they’ve chosen, building long-term relationships with content creators.
Clothing brand Lululemon known for its premium activewear invites customers to join their email list for updates on fitness events, new collections and exclusive offers. This approach builds a community of engaged and loyal brand advocates and cult-like following among fitness enthusiasts.
Buzz and Viral Marketing
Rosen (2000) coined ‘buzz marketing’ to describe the excitement generated around brands, events, or services. With the advent of social media platforms such as YouTube, Facebook, and Twitter, ‘buzz’ has become a cornerstone of viral marketing strategies, amplifying reach through word-of-mouth in the digital age.
Amyotrophic Lateral Sclerosis (ALS) Association created an Ice Bucket Challenge (2014). Their viral social media campaign encouraged people to pour a bucket of ice water over their heads, share the video, and challenge others to donate to ALS research. The campaign raised over $115 million for ALS research and became a global phenomenon, leveraging social media to amplify its reach.
In 2018, Netflix promoted the thriller Bird Box with a subtle social media strategy that allowed users to create and share "Bird Box" memes also known as #BirdBoxChallenge meme. This organic buzz led to the film being watched by over 45 million accounts within the first week of release.
The 3Vs Framework
Kumar’s (2004) framework—Value Customer, Valued Network, and Value Proposition—provides a strategic lens to drive innovation and growth. It highlights customer-oriented business practices that thrive on service excellence and adaptive marketing strategies.
Amazon has mastered customer equity:
Value Customer:
Amazon’s obsession with customer satisfaction is evident through features like Prime, personalised recommendations, and seamless returns.
Valued Network:
Its extensive logistics network, partnerships with third-party sellers, and relationships with content creators ensure diverse product offerings and reliable delivery.
Value Proposition:
Amazon’s convenience, competitive pricing, and extensive product selection make it a one-stop shop for customers worldwide.
CyberArk is a leader in exemplifying the 3Vs in niche industries like cybersecurity:
Value Customer:
CyberArk, a leader in identity security, prioritises securing customers' critical data assets. By understanding the unique security needs of each organisation, CyberArk tailors its solutions to offer maximum protection, building trust and long-term loyalty.
Valued Network:
CyberArk leverages partnerships with resellers, system integrators, and technology alliances to expand its network. By collaborating with other cybersecurity providers (technology vendors) and enterprise platforms, CyberArk ensures seamless integration and enhanced customer experiences.
Value Proposition:
CyberArk’s value proposition lies in its ability to provide scalable, proactive, and innovative identity solutions - securing both human and machine identities. Its focus on research and development, and key acquisitons to provide innovative solutions against insider threats and external attackers aligns with the growing demand for security systems in the digital age.
Technology, Globalisation, and New Marketing Paradigms
Globalisation and technology have dismantled geographical barriers, introducing paradigms like e-commerce, online advertising, and social networking. These advancements have:
Empowered Consumers: Social media gives consumers a platform to shape brand narratives, demand transparency, and influence peers.
Catalysed Innovation: Businesses now utilise real-time data, predictive analytics, and hyper-personalisation to meet evolving consumer expectations.
Redefined Engagement: Interactive and immersive experiences, from virtual events to influencer collaborations, have become standard practices.
As marketing continues to evolve alongside technological and societal shifts, the need for expertise in building meaningful relationships and leveraging digital tools has never been greater. The Monique Lam Group is equipped to navigate this complex landscape, driving growth and transformation for personal brands and businesses alike.
The Monique Lam Group
The Monique Lam Group excels in leveraging these transformative principles:
Customer-Centric Strategies: By prioritising CLV and customer equity, the group builds loyalty and sustainable growth.
Content and Social Media Expertise: Leveraging the power of permission marketing and buzz generation, they create campaigns that resonate and convert.
Data-Driven Insights: Advanced analytics guide our strategies, ensuring targeted and impactful marketing efforts.
Innovative Engagement: From SEO to influencer marketing, The Monique Lam Group masters the art of modern consumer interaction.
Are you ready to elevate your brand to new heights? Whether you’re a personal brand looking to make a lasting impression or a business striving for sustainable growth, The Monique Lam Group has the strategies, tools, and expertise to make it happen. Contact us today and discover how we can help you connect, innovate, and thrive in the new millennium. Don’t just keep up with the evolution of marketing—lead it.
References:
ALS. (2014). ALS Ice Bucket Challenge: 10th Anniversary. ALS Association Home Page. https://www.als.org/ibc
Dumas, B. (2024). Costco's 'Netflix moment' big win. Fox Business. https://www.foxbusiness.com/markets/costcos-netflix-moment-big-win
Godin, S. (1999). Permission Marketing: Turning strangers into friends and friends into customers. Simon & Schuster.
Kumar, N. (2004). The power of relationship marketing. The Journal of Consumer Marketing, 21(1), 38-51.
Mulhern, F. J. (1999). Customer Profitability Analysis: Measurement, Concentration, and Research Directions. Journal of Interactive Marketing, 13(1), 25–40. https://doi.org/10.1002/(SICI)1520-6653(199924)13:1<25::AID-DIR3>3.0.CO;2-L
Parker, A. (2024). Costco's Netflix moment: a warning for higher rated stocks. Financial Times. https://www.ft.com/content/1baf767e-e4a5-40b8-83a0-fdff8fee0e7b
Rosen, E. (2001). The anatomy of buzz: how to create word-of-mouth marketing. The Cornell Hotel and Restaurant Administration Quarterly, 42(3), 7. https://doi.org/10.1016/S0010-8804(01)81017-X
Varghese, S. (2019). How Netflix engineered Bird Box to be a viral triumph. Wired. https://www.wired.com/story/bird-box-challenge-netflix-marketing/
Yu, X. and Yuan, C. (2019). How consumers’ brand experience in social media can improve brand perception and customer equity, Asia Pacific Journal of Marketing and Logistics, 31(5), 1233-1251.