Traditional Marketing Mix 4Ps
After successful market analysis, planning, and strategy, marketers must design a marketing mix made up of factors the company can control to influence demand such as, product, price, place, and promotion (the 4Ps). Marketing mix is defined as the set of tactical marketing tools (4Ps) that a business blends to produce the response it wants in the target market (Kotler & Armstrong, 2014). The picture below briefly describes each of the 4Ps.
The 4Ps are used when referring to a business’s point of view, instead of the customer’s point of view. There is another part to the marketing mix called the 4Cs. Marketers use the 4Cs in the marketing mix to market in a more customer-centric way, rather than looking at how each aspect of marketing is seen by a business. Each C correlates with one of the P’s. The 4Cs are customer solution/value, customer cost, convenience, and communication (Kotler & Armstrong, 2014).
The first P, product, is a good or service that satisfies the wants of a company’s target market. When determining what the product will be, it must answer questions such as, what problem this product will solve, is there a consumer need for this product, and/or what will be the components of this product? This includes all items used in production to create the final product or service. However, marketers must also consider who will purchase the product and what the customer wants. Correlating with product is the first C, customer solution/value. Businesses sell products; however, customers are buying value and solutions to problems (Kotler & Armstrong, 2014).
The second P, price, is the amount of money customers must pay to obtain the product. It is the amount charged by a business; for example, a bottle of shampoo that costs $6.99. Prices may be adjusted by the business through discounts, allowances, and/or credit terms. Customers are concerned with more than just the price of the shampoo bottle though. The second C, customer cost, refers to the total costs of obtaining, using, and disposing of a product (Kotler & Armstrong, 2014).
The third P, place, includes company activities that make a product available to target consumers. This includes distribution channels, logistics, transportation, and locations offered. A company could have many stores offering its products across the United States, but there are still locations with consumers who will not be able to access that company’s products. This is most likely a loss to the company. The third C, convenience, is important to consumers. The more convenient a product or service is to the consumer, the better (Kotler & Armstrong, 2014). Consumers will make purchases depending on where, when, and how it is convenient for them; so marketers must take into account the consumer’s point of view here. For example, rather than businesses being concerned with locations of stores, it might be more beneficial to think of consumer convenience and offer online shopping.
The last P, promotion, is defined as the activities that communicate the merits of the product and persuade target customers to buy it. Two major factors for promoting are advertising and special promotions. However, consumers want more from businesses than 30 second commercials on television and/or radio to buy products. Consumers want two-way communication and relationships with businesses which is the fourth C, communication. Consumers also want to be engaged and feel a part of the business (Kotler & Armstrong, 2014).
4C’s of Marketing Mix – Modification of 4P’s
Customer or Consumer is the king in the competitive world. In the competitive environment, the product will not create its own demand if it isn’t wanted by the consumer.
First, you must need to study the consumer needs and demands and then develop the product as it satisfies the needs, wants and demands of desired customer or consumer demand.
Price is only a subset of the total cost incurred to satisfy the want or need of customer or consumer. Cost is the most important element of marketing mix which affects the decision of the customers.
The marketers must need to give special attention to the cost of a product or services.
Convenience is the most important tools for more sales. The convenience of purchase products helps most of customers or consumers to choose that product.
Take an example heavy machineries products like fridge and air cooler.
If the companies sell these products and do not give you delivery and installation service.
You may not buy the product as you won’t be ready to pick up the machine and install it yourself. You will be looking for your own convenience product.
A marketer should consider the communication instead of promotion.
Promotion is manipulative, it starts from the seller while Communication requires a give and take between the buyer and seller.