4P vs 4C - or how to use the Marketing Mix these days
Every entrepreneur has always operated based on the principles of maximizing profits and minimizing costs. These are fundamental principles on which every company should be based. With the current competition in the market for goods and services, to achieve this, an effective and distinctive marketing campaign is essential. How to create it and what to pay special attention to when creating it? How to use the principles of Marketing Mix?
In 1960, E. Jerome McCarthy, professor of marketing and author of Basic Marketing: A managerial approach, proposed a model called Marketing Mix. It describes four areas for a manufacturer to target the right group of consumers. These are:
- squares (distribution),
From the first letters of the four action areas, the model is usually called the 4Ps.
What are the 4Ps behind the Marketing Mix matrix?
The tools, or areas of activity, on which the model is based Marketing Mix, tell entrepreneurs what a promotional campaign for a product should contain in order to reach as many potential buyers as possible. In other words, we create our customer segment in this way. The first P, or product, includes the characteristics that a sold good should have. These include its specifications, brand or packaging, but also how it is perceived by consumers. Moreover, it shows us the factors that distinguish our product from its competitors. Popular ways to differentiate your offering in the 21st century are to provide aesthetically pleasing packaging or natural ingredients. Price, that is. price For the entrepreneur, it is a compensation for the expenses incurred. It also tells him how high the profit will be after deducting production and distribution costs. The price of a product can also be a competitive factor in the market, and it often has the greatest influence on consumer choice. Distribution (place) includes the channels through which the seller can reach buyers. This part is responsible for placing an already finished product on the market so that it gets noticed and stands out in the eyes of consumers. It is the link between the customer segment we set at the beginning and the value proposition we create throughout the tool. The last segment, the promotion points out the fundamental importance of effective advertising. It aims to bring together all the activities to make buyers aware of a new product, increase sales and keep them high.
The 4Cs, or consumer-oriented perspective shift
Today, the market for goods and services has been dominated by the consumer. The plethora of similar products requires manufacturers to be even more creative when building a marketing strategy. For this reason, in 1990 advertising and marketing professor Robert F. Lauterborn (author of "On Advertising and Education: Hope for Job Seekers," among others) presented a modification of the 4P model as a counter to it. He named it after - this time - the four areas of action in the letter C, or 4C. These are:
- consumer expectations (consumer expectations),
- cost (cost),
- convenience of purchase (convenience),
- communication (communication).
New model Marketing Mix The 4C does not change the basis of activities in particular areas. Instead, it requires the entrepreneur to "get into the skin" of the consumer and tailor every marketing activity to him. He must do so in such a way as to satisfy his needs and look at the market from the buyer's perspective. This is not an easy task, as the model requires additional effort from the entrepreneur. Now, in addition to taking care of the production and distribution of his company's products and their promotion, he must also keep in mind how potential customers will perceive him. This seemingly small change has a colossal impact on the effectiveness of current marketing campaigns.
This is an expanded version of the 4P model, supplemented by three additional factors. Such a model is the result of economic development and is more in line with modern times. In addition to the product and its promotion, it also focuses on people themselves and relationship building. The 7P model includes the elements of the 4Ps, plus three additional ones - people, process and material testimony.
People are responsible for the main factor that makes up a company. In order for it to develop well, all employees must be taken care of; from those working in production to managers. They are the ones who are responsible for results, have contact with customers, and represent the company. If they are treated well, this will translate into their relationships with business partners and customers, which can increase sales and keep consumers coming back.
Process or marketing and sales activities aimed at guiding the consumer through all stages of purchase; from awareness, to arousing interest, to finalizing the sale, to after-sales service. A properly conducted process builds trust in the company and a good image, and provides opportunities for subsequent transactions and referrals.
Material testimony, that is, all the elements of the company's image, testifying to its quality and professionalism. The logo is very important here, as it is the first sign that reaches the recipient. Other factors include a coherent visual identity, a clear and aesthetically pleasing website, the location of the company, the interior design of the headquarters and/or business outlets, the dress of the employees. All elements should positively influence the consumer's perception of our company.
New rules - new challenges
The reason for the necessity for the entrepreneur to change his approach to marketing, as described above, is the transformation of the distributor's market into a consumer's market. The cited change has been influenced by the huge selection of very similar products and services that he encounters every day. One of the most important tasks of the modern entrepreneur is to conduct such a marketing campaign that it is his offer that stands out from the competition. In order to achieve such an effect, it is necessary to have a well-planned advertising strategy and to reach buyers through modern communication channels such as Adwords campaigns, social media and email. Marketing Mix undoubtedly helps to better understand the current market realities, putting the company on a better path to increase its profits.