The 4 C's versus the 4 P's of Marketing
Marketing mix is defined as the set of tactical marketing tools (4Ps) that a in the middle) and the correlation, or replacement, of each P with a C. 4cs are buying value and solutions to problems (Kotler & Armstrong, ). The 4P's and 4C's can be taken as two sides of the same coin, with one being a relevant and did not help today's marketer address any real issues. Communication will work toward creating a meaningful relationship with. You may have used the popular 4P Matrix, a seller-oriented marketing theory But if you haven't tried the 4C model, you could be missing out on sales. What are you going to do to reduce or remove these challenges?.
Price, Product, Promotion, and Place. But the 4Ps serve as a great place to start planning for the product or even to evaluate an existing product offering. All products follow a logical product life cycle and it is vital for marketers to understand and plan for the various stages and their unique challenges. It is key to understand those problems that the product is attempting to solve.
The benefits offered by the product and all its features need to be understood and the unique selling proposition of the product need to be studied. In addition, the potential buyers of the product need to be identified and understood. Price Price covers the actual amount the end user is expected to pay for a product. How a product is priced will directly affect how it sells.
This is linked to what the perceived value of the product is to the customer rather than an objective costing of the product on offer.
If a product is priced higher or lower than its perceived value, then it will not sell. This is why it is imperative to understand how a customer sees what you are selling. If there is a positive customer value, than a product may be successfully priced higher than its objective monetary value. Conversely, if a product has little value in the eyes of the consumer, then it may need to be underpriced to sell.
Price may also be affected by distribution plans, value chain costs and markups and how competitors price a rival product. Promotion The marketing communication strategies and techniques all fall under the promotion heading. These may include advertisingsales promotions, special offers and public relations.
Whatever the channel used, it is necessary for it to be suitable for the product, the price and the end user it is being marketed to.
It is important to differentiate between marketing and promotion. Promotion is just the communication aspect of the entire marketing function. Place Place or placement has to do with how the product will be provided to the customer. Distribution is a key element of placement. The placement strategy will help assess what channel is the most suited to a product.
How a product is accessed by the end user also needs to compliment the rest of the product strategy. And get regular tips and tricks on topics such as marketing, financing, strategy, and management, so you can start and grow your company more successful.
Together, elements in these four categories help develop marketing strategies and tactics. Through the use of this tool, the attempt is to satisfy both the customer and the seller.
These four variables are interdependent and need to be planned in conjunction with one another to ensure that the action plans within all four are complimentary and aligned. Help Achieve Marketing Targets Through the use of this set of variables, the company can achieve its marketing targets such as sales, profits, and customer retention and satisfaction.
Flexible Concept The marketing mix is a fluid and flexible concept and the focus on any one variable may be increased or decreased given unique marketing conditions and customer requirements.
Constant Monitoring It is vital to keep an eye on changing trends and requirements, within the company as well as in the market to ensure that the elements in marketing mix stays relevant and updated.Video 1-2 El marketing mix, de las 4p a las 4c
Role of Marketing Manager A mature, intelligent and innovative marketing manager needs to be at the helm of the marketing mix. This pivotal role means that this manager is responsible for achieving desired results through the skill manipulation of these variables. Customer as a focal point A vital feature of the marketing mix is that the customer is the focal point of the activity.
The value of the product is determined by customer perceptions and the goal is to achieve a satisfied and loyal customer. This video shows how you can create value by using the marketing mix. At the core of any marketing effort is the product itself.
This however, is just one piece of the puzzle. The product must be something that the customer finds desirable and there must be something unique about it that sets it apart from all the rest of the competition.
Understanding the 4C's of Marketing Mix
The most effective way to achieve this is to first find the right untapped market, and then develop the product instead of trying to fit a ready-made product into a market.
Product testing, therefore, becomes a key element of both the product variable and the customer variable. The understanding should be of what the product can give the customer both in the eyes of the manufacturer and in the eyes of the consumer.
A good way to understand the difference in price and cost is given here. Price is the amount of money that a consumer will be willing to pay to acquire a good or service. On the other hand, cost is the amount that goes into the production of a good or service. This is the sum of the value of all inputs to production such as land, labor, capital and enterprise. Within the total cost to satisfy a customer need, price becomes one of the many factors.
Other factors may include the cost of time to acquire the product, the cost of conscience when it comes to consuming the product, the total cost of ownership, the cost to change to a new product and the cost of not selecting an alternative. There is a common misconception among marketing professionals that the main motivation for a product purchase is the price. Though price based positioning may provide some initial success, in the long term, this turns out to be a less successful move.
If the product is given a price that undercuts cost to gain the market, then the company will be at a disadvantage.
Market Learning Portfolio
If the product is priced at a premium without understanding its value to a customer, it will never be purchased. Instead, a focus on cost to satisfaction will mean that there is more important information being taken into account than just the purchase price.
Instead, he viewed communication as a more cooperative activity and driven more by the consumer of a product. A traditional marketing mix uses promotion as a tool to put information about the product in front of the customer. Promotion and its methods continue to evolve with new avenues and means to reach the consumer. Though these methods of promotion remain effective, a niche marketing focus needs a bit more. Communication will work toward creating a meaningful relationship with the customer with a focus on what they need and what their lifestyle is.
Understanding the Marketing Mix Concept - 4Ps
The focus is wider and more inclusive of the different forms communication can take. There is more of a give and take between buyer and seller. Looking at advertising as this form of communication can help a marketer understand their market better and increase sales and customer loyalty.
A customer is not bound to actually go to a physical location to meet a need and there is an endless variety of places online to do so. This means that a marketer needs to be aware of how a particular customer group likes to make their purchases in order to make it convenient for them to buy.
And get regular tips and tricks on topics such as marketing, financing, strategy, and management, so you can start and grow your company more successful. This model can also help a small business take on bigger and more established competitors. The key point, repeated often, is to remember to identify and understand target consumers as well as their needs and wants.
The next step is to offer tailored products and services that are meaningful to the customer and can lead to increased sales. A very easy way to use the model for an entrepreneur is given below.
There is a simple template that can be used as well as a few key questions to ask. In the next column, a benchmark organization can be used to compare.
Understanding Marketing Mix : 4P’s and 4C’s
This can be a top competitor for the organization and one it aspires to beat. The last column can be used to highlight actions that can be taken to reach the desired position in the market. Customer What is the competitive advantage? What are their needs and wants? What is the product or service worth to the consumer? Is the customer driving all decision making? Cost What is the price you mean to charge the customer? Has there been adequate research to determine this amount?
Is this figure reasonable and affordable? Is the figure profitable for the company?