Marketing concepts - 4P, 7P, 4C, 4E

Key information:

• The 4P model is a basic marketing mix concept consisting of four elements: Product, Price, Place, Promotion.
• The 7P model is an extension of the 4P model, adding three additional elements: People, Process, Physical Evidence, which provides a better understanding of the complexity of today's marketing strategies, especially in the context of services.
• The modern approach to marketing is the 4C model, which emphasizes the customer perspective, encompassing Customer, Cost, Convenience and Communication.
• The 4P, 7P and 4C models are used to adapt marketing strategies to changing market conditions and customer expectations to build a strong brand and competitive advantage.
• Companies such as Apple, Starbucks, Amazon and Ritz-Carlton have successfully put these models into practice, customizing their offerings and improving the customer experience.

Details below!

In today's rapidly changing marketing world, effective strategies are key to success. In this article, we will look at the various marketing concepts that have evolved over the years. From the classic 4P model to modern approaches such as the 4C and 4E, each of these models offers unique tools and perspectives that can help build a successful marketing strategy. Understanding these concepts is essential for any marketer.

The 4P marketing mix model is the foundation of marketing strategy

The 4P model is a classic marketing mix that consists of four key components. These core components are:

1. Product (Product) - What do we offer customers? What are the features and benefits of our product?
2. Price (Price) - What price do we set? Is it competitive with the market?
3. Location (Place) - Where do we sell our products? What distribution channels do we use?
4. Promo (Promotion) - How do we communicate with customers? What promotional activities do we undertake?

In practice, the 4P model allows companies to focus on key aspects of their offerings. In the cosmetics industry, for example, companies often align their products with current trends (e.g., natural cosmetics), set prices based on market segmentation, and choose appropriate distribution channels - from stationary stores to online sales.

The 7P model - a complement to the 4P formula

The 7P model expands the classic 4P model with three additional elements. They enable us to further understand the market situation and the needs of our customers. The model additionally includes:

1. People (People) - all employees involved in the sales process. This group includes marketers, suppliers, as well as managers or bosses. Each of them is responsible for what the customer's experience with the brand will be, and must be trained and competent.
2. Processes (Process) - all procedures and mechanisms needed to implement activities. Shaping the budget, developing an advertising campaign, or processing sales from entry to delivery of the product are critical to ensuring service quality and customer satisfaction.
3. Material evidence (Physical Evidence) - recognition elements of a company, such as logos, packaging design or other material-visual aspects that influence customers' perception of the brand.

The 7P marketing mix model in practice enables companies to take a comprehensive approach to planning and executing various elements of marketing strategies. This is particularly important in the service sector, where aspects such as people, processes and physical evidence are crucial.

An extension of the classic 4P model allows for a better understanding and satisfaction of customer needs, which is essential for building long-term relationships and loyalty among customers.

4C model - customer focus

The 4C model transforms the traditional approach to marketing by focusing on the customer instead of the product. It consists of the following elements:

1. Customer (Customer)

The customer is central to the 4C model. Instead of focusing on product attributes, companies should understand the needs, preferences and expectations of their audience. This means conducting market research, analyzing data and talking directly with consumers. This allows brands to provide products and services that are tailored to individual customer needs. In practice, this means that understanding the customer becomes crucial to achieving a competitive advantage, especially in highly competitive markets.

2. Cost (Cost)

Cost in the 4C model is viewed from the customer's perspective. It includes not only the price of the product, but also all other expenses associated with the purchase, such as the time spent or the risks associated with the transaction. Companies need to take these aspects into account to better align their offerings with customer expectations and increase customer satisfaction.

3. Convenience (Convenience)

Convenience refers to the ease with which customers can get a product or service. In today's world, where customers expect quick and convenient access to products, companies must strive to simplify the buying process. This includes both the availability of products through various distribution channels and simplified online ordering processes.

4. Communications (Communication)

Communication in the 4C model is a two-way process that engages customers in dialogue with the brand. Companies should strive to build relationships with customers by actively listening to their needs and responding appropriately to their expectations. This approach fosters loyalty and a positive brand experience.

An example of the application of the 4C model can be found at Amazon, which puts the customer at the center of its operations. By offering convenient purchasing options and transparent communication, Amazon is effectively building customer loyalty.

It is worth noting that the 4C model is not just an alternative to traditional marketing models such as the 4Ps or 7Ps; it is an extension of them that better meets the needs of today's consumers. In an era of digitization and increasing competition, the ability to adapt to customer expectations is crucial to the success of any company.

The 4E model - building customer relationships

The 4E model is a modern approach to marketing that focuses on customer emotions and experiences. It consists of the following elements:

1. Experience (Experience)

A key aspect is to create valuable and memorable experiences for customers. This includes not only the interaction with the product, but also all points of contact with the brand, such as customer service and the buying process. Companies should strive to make these experiences positive and rewarding, which increases the chance of customer loyalty. Examples of innovative experiences include interactive content, mobile applications or the use of AR (Augmented Reality) and VR (Virtual Reality) technologies, which can provide memorable experiences.

2. Exchange (Exchange)

In the 4E model, the exchange of value between the customer and the company is key. Customers are willing to pay more for a better experience, which they perceive as more valuable than the price of the product itself. This approach suggests that companies should nurture their online presence and be responsive to customer needs. Integrating different sales channels and being active on social media are essential to building relationships and brand awareness.

3. Engagement (Engagement)

Engaging customers is the process of building relationships that go beyond a one-time purchase. Companies can achieve this by creating a community around their brand, organizing events, interactive marketing campaigns and actively using social media to communicate with customers. Engaging customers in dialogue and gathering their feedback allows you to better tailor your offerings to their expectations.

4. Emotional value (Equity)

Emotional value refers to how customers perceive a brand on an emotional level. A strong brand not only sells products, but also builds deep ties with its customers, who become its ambassadors. An example of this is Nike, which not only sells athletic footwear, but also engages its customers through a variety of sports events and campaigns that promote active lifestyles. As a result, customers identify with the brand and are willing to recommend it to others.

Implementation of the 4E model requires a thoughtful strategy and continuous monitoring of the effectiveness of marketing activities. Companies need to invest in market research and product development to deliver valuable experiences and maintain authenticity at every customer touchpoint. In the digital age, where customers have access to a wide selection of products, the ability to create emotional connections with consumers is becoming a key factor in market success.

When to choose 4P, 7P, 4C or 4E?

So, which model should your company decide on? The decision must depend on the specifics of your industry, your business goals and customer characteristics. Below is a brief summary of the concepts discussed:

– Model 4P works best for physical products and traditional markets.

– Model 7P is ideal in the service sector and where customer interaction is crucial.

– Model 4C should be used when understanding customer needs is fundamental.

– Model 4E is best suited to brands seeking to build deeper emotional relationships with customers.

It is important to remember that choosing the right marketing model should be thoughtful and tailored to the unique needs of your company and its customers.

The evolution of marketing - from product to emotion

Marketing has undergone a significant evolution since the dominance of the 4P model. There is now an increasing emphasis on emotions and customer experience. Models such as the 4Cs and 4Es show that modern marketing is not just about selling products, but also about creating valuable relationships with consumers.

To effectively use modern marketing models, companies should:

1. Understand the needs of your customers.
2. Create engaging experiences.
3. Build emotional ties through authentic communication.

The use of different marketing models allows companies to adapt their strategies to changing market conditions and customer expectations. The key to success is the ability to integrate these models in a flexible and creative way.

Choose the right marketing model

In the article, we discuss a variety of marketing models - from the classic 4P model to modern approaches such as 4C and 4E. Each of these models has its own unique advantages and applications in marketing practice. Understanding their differences and knowing how to apply them are key elements of a successful marketing strategy in today's business world.