Understanding Competition from Multiple Perspectives

As customer behavior evolves, so does the concept of marketing. Each stage in the evolution of marketing—Marketing 1.0, Marketing 2.0, and Marketing 3.0—offers unique insights into understanding competition and its dynamics.

Marketing 1.0: Product-Centric Marketing

Marketing 1.0 focuses on delivering basic product features to the mass market. It adopts a straightforward framework for analyzing competition based on three primary components:

• Company: The business itself, including its resources and capabilities.
• Customer: The target audience and their basic needs.
• Competitor: Other businesses offering similar products.

This product-centric approach emphasizes understanding how these three components interact, providing a foundation for navigating the competitive landscape.

Marketing 2.0: Customer-Centric Marketing

With the advent of more accessible information, customers became more discerning, prompting a shift to Marketing 2.0, which focuses on meeting customer expectations and decision-making processes. The framework expands to include a fourth component which is Change. The dynamic forces—economic, market, socio-cultural, political-legal, and technological—that drive industry transformation. This broader perspective allows businesses to anticipate shifts in the competitive landscape and adapt strategies accordingly, making it a more comprehensive approach to understanding competition.

Marketing 3.0: Human-Centric Marketing

Marketing 3.0 views customers not just as buyers but as individuals with thoughts and emotions, introducing a more empathetic and collaborative approach. It retains the four components of Marketing 2.0 but adds a critical fifth element which is Collaborator or Connector. It is the external partners who help businesses streamline operations and enhance their ability to compete effectively. By leveraging collaborators—such as suppliers, technology providers, or distribution partners—companies can better respond to market demands and navigate intense competition.

Each marketing evolution provides valuable insights into competition from different angles:

• Marketing 1.0: Simplifies competition into core elements (company, customer, competitor).
• Marketing 2.0: Incorporates the impact of external changes, such as market trends and technological advancements.
• Marketing 3.0: Highlights the importance of collaboration to strengthen competitive positioning.

By combining these perspectives, businesses can develop a holistic understanding of the competitive landscape, enabling them to craft strategies that address immediate challenges while preparing for future shifts.

Competition is more than just navigating a crowded market; it’s about gaining a deep understanding of the market dynamics from multiple perspectives. By adopting frameworks from Marketing 1.0, 2.0, and 3.0, businesses can identify opportunities to deliver added value, adapt to changes, and collaborate effectively to gain a sustainable competitive edge. In doing so, they not only respond to competition but also proactively shape their position within the market.