Table of Contents
Introduction
The term marketing mix was first coined by Neil H Borden who was the president of The American Marketing Association (AMA) in 1953. In down streams in 1960 a marketing expert E.Jerome Mc Carthy furnished with the theory of 4P’s (Place, Product, Promotion, Price) which completely concentrated on the product to be marketed. All marketing models have their drawbacks, as the globalization theory came into practice there raised an imperative need to have an eye on customers all over, Robert Lauterborn (1990) arrived with the new concept of 4C’s (Communication, Convenience, Customer, Cost) which had a concern on customer market. In recent times the consumers have become the force of the marketing world, so it’s essential to relate the concept of 4P’s and 4C’s and build a new concept of marketing. This essay discusses how the 4P and 4C concepts can be related for developing a healthy marketing environment.
4P’s of marketing
The majority of marketing professional considers that Mix would be a toolkit of transaction marketing and paradigm for operational marketing planning. This theory has been implemented to 550 Dutch company executives (Alsem et al, 1996) only 70% of the companies sustained in their marketing plans but the concept of the mix was been divided among the departments. (Constantinides, E. 2006) (p.408).
The marketing mix is a sequence of variables used by the firms to promote and market its product and services globally, the main motive of 4P concept was to promote the product and it was completely product-oriented. The product acts as a key element for the marketing mix which concentrates mainly on tangible products like table, car, etc.., and also on intangible products like services.
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The above chart symbolizes the growth of the product from the moment it’s launched till the product has gone out of stock, the major reasons for these happenings would be a time factor, as days pass the development in technological invention and new marketing strategies has bought down the market of the existing product. Design plays a vital role in the product by attracting the attention of the customers, merely the product success depends on its design and uniqueness of the competing product. Modern technology helps to make the product withstand in the market for a longer span. The various usage of the product as per the convenience of the customers increases the value of the product. The quality of the product can be determined by its warranty period and services provided after-sales, this data provides the assertion to the product and serve customer satisfaction.
Price is the value for money offered by the customers in exchange for our products and services. The fixing of price plays a crucial role in the market, the major factors to be considered are the values of the competing company products, cost of raw materials, manufacturing cost, direct and indirect expenses, etc. The money value of the product can also be varied based on the places they stay for sales (Retail shop, Wholesale shop, Internet, etc.,). There exist two concepts of price-fixing, Cost-plus is the concept by which the long term existing companies quote a greater sum of price for their products due to the familiarity of the brand and quality of the product and loss leader is a concept by which the companies quote a lesser price for their product in idea to promote their product to a large community of people. This is mostly practiced during a new startup.
The place is a factor of the mix which is interlinked with other factors of the mix, it includes warehouse, distribution methods, inventory, availability of the market, etc. The price and the product are determined by place of demand, and they are changed depending on the place factor. The changes in place can be explained as, retailers will have a closer relationship with their customers and they are capable of providing the customer’s needs. Wholesaler generally reduce their prices compared to retailers to increase their sales and they receive a commission from the company.
Internet is a platform we can access lots of products at a low price since there are few barriers in-between the producer and the customer. It also helps in the economic growth of the country.
Direct sales are the method of selling goods directly to the customer without any intermediates, for example initially launched one plus mobiles are available only on online sites and no local mediator is involved in the sales.
Promotion acts as a major role in marketing the product by taking it to the minds of the customer and attracting the people via advertising, special offers, gifts, etc,. It guides the wholesalers and retailers to promote the product to their customers. It maintains the position in the target market, even though is an expenditure for the company, but it helps to gain the profit for the product, the marketing officials play a vital role in determining the promotion of the product.
The major ways of promotions which companies follow are:
Giving Special offers to consumers like ‘Buy one! Get one free!’, providing coupons, gift vouchers, free products which are related to the main products, example- receiving a keyboard, stylus, mouse along with the laptops. Endorsements conceive the mind of the customer by getting attracted to the person who is promoting the products via advertisements. Advertising is the heart of target marketing which attracts a huge sum of consumers, there are many ways to advertise a product like through media, magazine, television, outdoor posters, even though movies. Competition in the market becomes the cause for the outcome of the new products and helps to develop the creativity in the upcoming product. Joint ventures help to discover lots of new customers, the good relationship with the retailer and wholesaler makes them stakeholders of the company and they start to promote our products
Relating 4P to 4C
The marketing mix was first created by the American marketing expert
Prof. McCarthy as place, price, product, and promotion. While Prof. Lauterborn came with the new theory of 4C as cost, convenience, communication, and customer. The 4P theory focuses on product development and promotion. Where 4C tries to build a customer relationship as a concept of long-term marketing strategy, this theory strengthens the relationship between the business firm and the customer and neglects the variation in demand. According to 4C theory, it tries to establish a one to one direct communication between the firm and the customer. When compared to 4P, 4C theory is not used much any way they both have their merits and demerits on the whole. Since the customer expectations are growing higher it’s essential to implement the combined theories of 4P and 4C. (Liao, H. (2015), p.97).
Let’s discuss the study carried out on ‘network marketing’ in China to a travel agency relating to 4P and 4C
(Liao, H. (2015), p.98,99).
Let’s discusses how Product is related to customer value, according to the study, network marketing is essential to grab a huge number of customers. The travel agency acquires the data of frequent travelers and monitors their needs and update themselves as per customer requirements. By this, they could easily determine the changes to be implemented from the feedback of the customer. It’s the responsibility of the travel agency to arrange the trip plan, tickets, stay, food and important places to visit. Usually, many customers would love to purchase goods, again it’s the responsibility of the agency to arrange a healthy trip which makes the customers feel its value for money. Similarly, Price is related to the cost of the customer, which can be briefly explained as the cost expectation of the customers can vary depending upon the status of the people.
Considering this factor in mind the agency could segregate the types of customers and provide two different trip plans as per the requirements of the customer. The company should also be flexible to create a new plan according to the requirement of the customer which develops customer relations. Correspondingly, Place is related to convenience by which, travelers wish to access online sites only when they feel that’s feasible and cost-efficient. Hence the website creation and content distribution should be based on customer satisfaction. The website should occupy a higher grade in the search engine which makes it more convenient for the customers. The travel website design should mainly focus on two link factors enterprise information and e-commerce information. E-commerce should provide a detailed structure of the travel plan which is feasible to different communities of travelers. The site must conform three sets of information before-sales, in-sales, after-sales. The company must also be malleable to provide separate plans for a family trip.
More of the facilities offered to attract lots of customers. In addition we can relate promotion to communication, eventhough the classic way of promoting via ads, media, etc., has outdated where customers wish to have an online two-way promotion which makes them much feasible to know about the offers the company provides for the customer. Moreover, they take concern on their customer’s search update and plan accordingly to satisfy their needs. The best way to promote is to create a customer-relation page where all their customers could share their feedback and their experiences
Conclusion
The marketing mix would be more convenient and scientific under the combination of 4P and 4C theories. It reduces the bridge between the firm and the consumer, it also helps to build long-term customer relationships by getting feedback directly from the customer and fulfilling their needs. For having a powerful position in the customer’s mind, build strong relationships, determining the levels of loyalty, and fulfilling the needs of the consumer efficiently. Also, to satisfy their basic needs people are ready to offer any sum of money to achieve the desired product.
References
- Constantinides, E. (2006). The marketing mix revisited: towards the 21st-century marketing. Journal of marketing management, 22(3-4), 407-438.
- Liao, H. (2015). Websites marketing strategy of travel agency using an integrated theory of 4C and 4P. Management & Engineering, (20), 96-100.
- Manafzadeh, E., & Ramezani, A. (2016). Identifying and prioritizing the effect of the marketing mix from the customer’s perspective (4C) on the competitiveness of insurance companies using DEMATEL technique: A case study of Tehran Insurance Companies. Marketing and Branding Research, 3, 86-96.
- Singh, M. (2012). Marketing mix of 4P’s for competitive advantage. IOSR Journal of Business and Management, 3(6), 40-45.
- Van Waterschoot, W., & Van den Bulte, C. (1992). The 4P classification of the marketing mix revisited. Journal of Marketing, 56(4), 83-93.
