H2H Marketing - critical summary review

This book reframes traditional marketing by shifting the focus from commodities and consumerism to human integrity and trust. It advocates for a marketing approach that prioritizes service to others and addresses fundamental human needs. The authors argue that marketing should move away from the old product-oriented "4P" strategy and toward a human-to-human (H2H) paradigm based on empathy, trust, and meaningful relationships.

Incorporating design thinking, service-dominant logic, and the impact of digitalization, the H2H marketing model encourages businesses to foster deeper, more holistic relationships with their customers. The authors explore how this new mindset can help marketers respond to the changes brought by digitalization, such as increased customer awareness and bidirectional communication through the internet. They argue that successful marketing should prioritize people, solve human problems, and promote societal development.

The shift from psychological manipulation to human-centric strategies

In the 2017 article “Marketing is Evil” by Marty Nemko, the author criticizes the marketing industry for exploiting psychological tactics to persuade consumers to purchase overpriced products and services, such as luxury goods and pharmaceuticals. This critique reflects a broader erosion of trust and credibility in marketing, as traditional methods fail to meet the expectations of today’s digital and informed consumers.

In response, the article proposes a paradigm shift towards the “H2H Marketing Model,” a new framework developed at Christ University in Bangalore, India. This model aims to reorient marketing by integrating Design Thinking, Service-Dominant Logic (SDL), and digitalization. Design Thinking emphasizes human-centered design and iterative innovation, while SDL focuses on co-creating value within collaborative ecosystems.

Digitalization enhances these approaches by providing new tools and options for customer interaction. The H2H Marketing Model not only seeks to address contemporary challenges by fostering deeper, more meaningful customer relationships but also advocates for a shift from purely transactional to more human-centric approaches.

It encourages companies to embrace a mindset that prioritizes understanding and solving real human problems, as seen in the practices of companies like Whole Foods Market and Patagonia. The model is structured around two layers: the conceptual framework, which includes the three core elements, and the practical application, which involves adopting the H2H Mindset, H2H Management, and H2H Process.

The H2H Mindset represents a cultural shift towards empathy and human-centeredness, while H2H Management integrates traditional marketing strategies with new principles focused on co-creation and trust-building. The H2H Process provides a flexible, iterative approach to implementing these concepts, emphasizing the resolution of human problems as the starting point. This comprehensive approach aims to revitalize marketing by aligning it more closely with the needs and values of today’s consumers.

The authors discuss Vargo and Lusch's Service-Dominant Logic, which represents a major shift from the traditional Goods-Dominant Logic (GDL). While GDL views goods as central to value creation and services as secondary, SDL argues that services are the core of all exchanges. SDL includes eleven fundamental premises, such as the idea that value is co-created through interactions and that firms offer value propositions rather than delivering value directly. It promotes the move to service-centered models and the importance of consumers as active contributors in value creation.

Redefining value creation in the digital age

The authors research the changing dynamics between consumers and suppliers, revealing a trend toward a more collaborative and integrated relationship enabled by technological improvements. They illustrate this transformation through an example where a consumer unexpectedly receives a smartwatch from Apple, which highlights how companies, through sophisticated data analytics, can anticipate and meet latent customer needs. This scenario underscores a reversal of traditional knowledge asymmetry, where companies now leverage Big Data to offer products that customers might not have envisioned themselves.

The concept of the "prosumer," in which customers are not just consumers but also participants in value generation, is introduced. Customers may get involved in innovation processes upstream or downstream, influencing the product's reputation through consumption and advocacy. The prosumer model includes open innovation, where customers contribute ideas and test products, and mass customization, allowing individuals to configure products to their preferences.

Furthermore, the chapters address the transfer in control from enterprises to customers, illustrating the importance for businesses to adapt to this new reality in which customer-driven narratives and self-service activities may affect brand perception. Companies are urged to embrace a co-creation culture, which can enhance brand image and foster customer loyalty by involving consumers more deeply in the value creation process.

The narrative transitions to the impact of digitalization on marketing, stressing the importance of integrating digital skills and understanding new customer dynamics. It critiques the short-term focus of corporate digital strategies and advocates for a human-centric approach in digital marketing. The chapters reflect on the rapid growth of online retailers during the COVID-19 pandemic and the integration of digital sales strategies across various markets, underscoring the importance of adapting to the evolving digital landscape.

Improving value creation through empathy and agility

The authors strongly advocate for the idea that marketing should prioritize people rather than merely serving corporate interests. This approach advocates for a marketing model where human needs and experiences are central, rather than seeing humans as tools to achieve business goals. The H2H Marketing Model integrates Design Thinking, SDL, and digitalization to address human issues effectively.

The foundation of H2H Marketing is the H2H Mindset, a crucial element that influences the strategic (H2H Management) and operational (H2H Process) components of marketing. This mindset is defined as the underlying logic that shapes how individuals and organizations perceive and act in the world, impacting their interactions and decisions. Business coach Svenja Hofert’s definition of mindset highlights it as a dynamic and context-sensitive attitude that influences actions.

Traditional marketing approaches, such as market and customer orientation, are contrasted with the H2H mindset. Market orientation focuses on balancing customer needs with competitive positioning, while the Customer-Based View (CBV) integrates resource-based and market-based perspectives to enhance value creation. The CBV emphasizes that customer value and company value are interconnected and dependent on developing core competencies.

The authors argue that traditional market orientation must be updated to incorporate modern influences like Design Thinking, SDL, and digitalization, leading to the H2H Mindset. This mindset emphasizes human-centeredness, recognizing customers as complex individuals with diverse needs rather than mere data points. It integrates customer satisfaction into the value creation process, challenging the dehumanization brought about by digital advancements. The H2H Mindset also underscores the importance of service orientation, where knowledge and skills are leveraged to benefit others beyond mere product transactions.

This approach fosters collaboration and co-creation, as seen in positive and negative examples of service orientation, illustrating how genuine service can lead to mutual benefits while a product-centric view can result in failures. Agility and experimentalism are further essential, with digitalization demanding adaptive and flexible management principles. An agile mindset allows individuals and teams to respond quickly to changes and embrace iterative problem-solving processes.

By incorporating diverse viewpoints, particularly those of users and stakeholders, businesses can develop solutions that are both desirable and practical. The chapters conclude by integrating these elements into the H2H Marketing Model, emphasizing the need for a mindset that values human welfare, service orientation, adaptability, and empathy. This comprehensive approach ensures that marketing and business practices align with genuine human needs and foster meaningful value creation.

Creating authentic, human-centric brands

The authors discuss how crucial trust has become in today’s Reputation Economy. They focus on two main areas: trust management and brand management, both essential for building strong connections between companies and customers. With declining trust in governments and media, people now look to companies and their leaders for guidance on social, economic, and political issues. Brands can act as trust anchors, helping to build and maintain this essential trust.

Brand activism, a modern evolution of Corporate Social Responsibility, involves businesses actively working on social, political, and environmental issues. They introduce the H2H Brand Management model, built on three key parts: holistic brand management, Brand-formative Design (BFD), and Collaborative Branding (CB). Holistic brand management focuses on creating a consistent and authentic brand that adapts to changing environments. BFD connects with consumers through emotions and associations, while CB involves customers in the brand's creative and innovation processes.

They explain the significance of human-centric marketing, where brands focus on human elements in a world dominated by technology like Artificial Intelligence (AI) and automation. The authors also explain the identity-based brand approach, where a brand’s identity is shaped by how the company views itself (brand identity) and how customers see it (brand image). For successful brand management, these two aspects must align, ensuring the brand stays true to its promises at every customer interaction. The goal is to build trust and emotional engagement with customers, keeping brands relevant in today’s interconnected world.

The transition to customer-centric strategies

The authors explore the evolution of the traditional 4P marketing mix, presenting its limitations in the current digital age and introducing new frameworks to address modern business challenges. The traditional 4P model—product, price, place, and promotion—was a cornerstone of marketing for over 50 years, providing a strong focus on organizational and production-driven elements. However, they argue that this model, rooted in a GDL, lacks customer orientation, especially in an era where the relationship with the customer has become central to business success.

Through this critique, they propose the shift towards the Human-to-Human (H2H) marketing process, which emphasizes customer engagement, flexibility, and iterative strategies more attuned to today’s hyper-competitive digital landscape. The iterative nature of H2H means that it constantly refines itself based on customer feedback, contrasting with the linearity of the 4P model. This process also includes omnichannel marketing, digital, content, and service marketing, which allow businesses to maintain a continuous dialogue with customers rather than relying solely on traditional promotional tactics.

The authors also consider other conceptual successors to the 4P paradigm. These include the 4C model by Robert Lauterborn, which focuses on consumer needs, cost, convenience, and communication. It shifts the marketer’s focus from product features to customer desires, promoting a two-way communication rather than one-directional promotion. The SIVA (Solution, Information, Value, and Access) model further refines this by emphasizing customer-centric solutions, dialogue, and accessibility. SAVE promotes engaging customers through education and mutual problem-solving, fitting better with the inbound marketing strategies of the digital era.

Adapting to changing consumer expectations

The writers point out today's corporate landscape's shift from traditional marketing methods to customer-centric, digitally driven approaches. Central to this shift is the importance of "access"—ensuring the availability of a company's value proposition to customers, with the recognition that customers now dictate when and where purchases are made. This demands flexibility and customer-oriented channel architectures, as electronic platforms become increasingly essential.

As part of this evolution, "omnichannel integration" emerges, blending online and offline touchpoints for a seamless experience. This shift has been fueled by the demands of the "Now Economy," where consumers expect rapid delivery and instant satisfaction. Companies, particularly in the B2C space, have adapted to these trends, but there remains a gap in B2B, where catching up is necessary.

The omnichannel model differs from multichannel by focusing on the human being at the center, empowering customers to control their buying journey, from the first impression (the Zero Moment of Truth) to post-purchase validation (the Second Moment of Truth). They explain that successful omnichannel integration requires brands to offer consistent experiences across all channels, breaking down the distinction between online and offline interactions.

Moreover, "Social Commerce" is identified as a significant development in e-commerce, as social networks become intertwined with purchasing decisions. This shift is seen in the integration of ratings, recommendations, and even direct transactions via social media platforms. The authors point to the early stages of this evolution, with social commerce still in its infancy, but forecast its increasing influence as digitalization deepens the integration of social interactions and commercial activities.

The chapters conclude by introducing the "H2H Process," a flexible, iterative approach that blends elements of service-dominant logic, design thinking, and digitalization. The H2H Process, which stands for Human-to-Human, puts the customer at the center of marketing activities, stressing the importance of human problems, collaboration with customers, and value co-creation. This lean, experimental process is adaptable to both start-ups and established companies, emphasizing real-time reactions, multichannel presence, and the use of new technologies like 3D printing and augmented reality.

Final notes

"H2H Marketing: The Genesis of Human-to-Human Marketing" discusses a significant movement in marketing, away from misleading tactics and toward human-centric approaches. It critiques traditional marketing for using psychological tricks to push unnecessary products and highlights the need for a new, ethical strategy.

The central idea is the "H2H Marketing Model," which focuses on creating deeper connections between companies and customers. This model integrates human-centered design, co-creation of value, and digital tools to address real human problems. It prioritizes empathy, adaptation, and collaboration between businesses and customers.

The authors also discuss how technology, like big data and digital platforms, changes the way companies interact with customers. Companies like Amazon and Spotify use technology to understand and meet customer needs better, shifting power from corporations to consumers. The concept of "prosumers"—people who are both producers and consumers of value—is also introduced. Overall, the book advocates for a marketing approach that puts people first, adapts to new digital realities, and builds trust through genuine relationships.

12min tip

If you're looking to break free from old patterns and truly take control of your personal and professional growth, "CHANGES," by Michael Diettrich-Chastain, goes beyond typical self-help advice, offering a practical model that digs deep into the seven areas of life that impact our ability to make lasting changes.