Marketing 3.0 is a new approach to marketing where customers are believed to be human beings with emotions, needs, inspirations, and values instead of just somebody that buys a product (Kotler et al., 2010). Companies that implement Marketing 3.0 see customers as multidimensional and value-driven that feel empowered to change the world by the way they consume products and support companies (Kompella, 2019). This paper will discuss how Exxon Mobil can shift to a Marketing 3.0 strategy.
About the Company
Exxon Mobil Corporation or Exxon Mobil is an oil and gas company that explores and produces crude oil and natural gas, which transports and sells to the public (MarketLine 2021). In addition, it manufactures and sells other petroleum derivates products like olefins, polypropylene, aromatics, and more (MarketLine, 2021). The company is divided into three business segments: Downstream, Upstream, and Chemicals (MarketLine, 2021).
The Downstream segment is about manufacturing and selling petroleum products (MarketLine, 2021). The company has a global network of manufacturing plans and a transportation system that provides the delivery of those items to customers (MarketLine, 2021). The Upstream segment is in charge of exploring and producing crude oil and natural gas (MarketLine, 2021). This segment dedicates all the resources to the exploration development, research, and marketing of natural gas (MarketLine, 2021). The next division is the Chemicals segment which produces and sells petrochemicals (MarketLine, 2021). They supply products like olefins, aromatics, polyethylene, ethylene, and others (MarketLine, 2021).
Exxon Mobil Mission Statement
The following quote is the mission statement of Exxon Mobil.
Exxon Mobil Corporation is committed to being the world’s premier petroleum and chemical manufacturing company. To that end, we must continuously achieve superior financial and operating results while adhering to high ethical standards.
There is a disconnect between the company and society. Their mission statement sounds too “corporate” because there are no benefits to customers or people in general. Being the premier petroleum company does not show any type of responsibility or dedication to the people that buy its products. The mission statement is not talking to the customers, they are talking to investors with a mission statement containing terms like premier, financial, operating results, standards, etc. In contrast, the following quote is the mission statement by Shell which is one of its main competitors:
Shell’s purpose is to power progress together with more and cleaner energy solutions. We believe that rising standards of living for a growing global population are likely to continue to drive demand for energy, including oil and gas, for years to come. At the same time, the need to tackle climate change means there is a global transition under way to a low-carbon energy system.
Shell’s mission statement is clearer and goes to the heart of the customers because they are trying to address problems that are affecting society. For example, there is evidence that global warming is affecting the Earth’s temperature on the surface which makes glaciers melt, springs arrive earlier than before, sea levels rise, tropics expand, and storms are becoming stronger (Fletcher, 2018). Fossil fuels have helped us into an economic revolution, but it also has created or accelerated climate change (Roberts, 2005). Exxon Mobil has ignored these facts based on the type of mission statement considering that they only want to produce “results” in the financial way of thinking. Shell, on the other hand, has recognized that customers also care about their future and the overall society, so they have shifted to a greener a clear energy approach. Shell has moved to a Marketing 3.0 while Exxon Mobil is still on the dated way of thinking that customers are just numbers.
Suggestions for Exxon Mobile
A quantum leap must happen at Exxon Mobile that changes the entire culture of the organization. Management needs to go out of the firm and see how their organization could help the public and be on the side of the public interest. It is known that fossil fuel is one of the causes of global warming (Roberts, 2005). Therefore, they should see how the effects of their products are reduced while maintaining the business.
Additionally, looking for alternatives to fossil fuels is great for business because the world is moving to green energy in general. For instance, solar energy, batteries, and the use of hydrogen have become the main topics in research to replace fossil fuels in the future (Friedemann, 2021). Also, there is a new wave of conscientious customers that want a clean world and are jumping into electric cards. This year, Tesla reported a record profit due to electric car sales (Rushe, 2021). Therefore, a partnership with a company like Tesla or any other car marker to provide this type of energy source for the vehicles will move the company to the future.
The majority of people see climate change as a major threat to their nations (Fagan & Huang, 2019) and the company wants to move into a Marketing 3.0 where it is more about the people, society, and public well-being, they need to start by changing their mission to serve society with a better alternative to oil fuels.
Once they have created a mission with society in mind and how the company could be an asset to the community instead of being a beneficiary and spectator, employees will follow and feel that they will contribute something to the world.
After a new mission statement that exhibits the same values and interests of society and employees, Exxon Mobil should implement the change in how they address the energy field and how they can find alternatives to fossil fuels.
References
- Fagan, M., & Huang, C. (2019, April 18). A look at how people around the world view climate change. Pew Research Center; Pew Research Center. https://www.pewresearch.org/fact-tank/2019/04/18/a-look-at-how-people-around-the-world-view-climate-change/
- Fletcher, C. (2018). Climate Change: What The Science Tells Us. United States: Wiley.
- Friedemann, A. J. (2021). Life After Fossil Fuels: A Reality Check on Alternative Energy.
Germany: Springer International Publishing. - Kartajaya, H., Kotler, P., Setiawan, I. (2010). Marketing 3.0: From Products to Customers to the Human Spirit. Germany: Wiley.
- MarketLine Company Profile: Exxon Mobil Corporation. (2021). In Exxon Mobil
Corporation MarketLine Company Profile (pp. 1–74). - Roberts, P. (2005). The End of Oil: On the Edge of a Perilous New World. United Kingdom:
Houghton Mifflin. - Rushe, D. (2021, April 26). Tesla reports record quarterly profit as electric car sales boom. The Guardian. https://www.theguardian.com/technology/2021/apr/26/tesla-record-quarterly-profits-electric-car-sales-boom