2 posts tagged “four ps”

1to1 Media covers this topic (reg req'd) in a same-titled article. They asked several opinion leaders to sound off on the topic. There is an abstract at 1to1 Media. Here is my edit: the 4Ps ARE company-centric and this is amply illustrated by making people only a part of the target market portion of the marketing mix. But, as we all well know, people are involved - both customers and non-customers in the design of a some new products. How does the 4 Ps explain those non-customers? They are relegated to nothingness in every marketing textbook out there today. There have been proponents of expanding the 4Ps to 5, 6, 7, 8 ands 9 Ps. A couple of the additional Ps wanted: packaging, people, provider's (a Brazilian proposed this one) and so on. But until the grand dragons of marketing die off and keep putting off the paradigm change, the 4 Ps - purely company-centric, will rule. Unfortunately. The 4 Ps were designed from the get-go as company-centric. They have been held together for so long by these grand dragons that the concept now resembles GATT and that was getting ready to sink for all the bandaging that had been applied. So too will the 4 Ps go - passing into history as the world continues its move from company-centric marketing to customer-centric in fact to where the customer actually becomes involved in the development, manufacture and marketing of these products/services. This topic has been covered by AdRANTS, Fast Company and others, but still the old boys network suppresses that which does not ft their world-view.

Here are some extracts from the article:

The new 4Ps are Preference, Premium Price, Portion of budget, and Permanence of relationship. It is these four customer actions that determine an organization’s success. Companies no longer control the relationships, customer do. (Lior Arussy, President, Strativity Group)

In today highly commoditized environment with almost parallel prices, well-informed and savvy customers often [move] between multiple brands of the same product with virtually the same features. It jeopardizes the major buying influencers of the 4Ps, product and price, while leaving place and promotion as merely placeholders. ( Andy Lorin, 1to1 Media Editorial Advisory Board member and Marketing Analyst, Bonasource)

The business ecosystem is now controlled by the customers and that means that the 5Cs are dominant. They are contextual, connected, collaborative, creative, and content-driven. (Paul Greenberg, Author, CRM at the Speed of Light)

Lest I be accused of recapping the article unfairly, two sources said that the 4 Ps hadn't been debunked (Peter Nyberg, President and Founder, ingage) (I only say they are inadequate by any current standard) or that they haven't gone away but need to be re-invented (and that makes them inadequate) (James Vila, Senior Director, Carlson 1 to1, and Principal, Peppers & Rogers Group ).

Over at Caffeine Marketing, this myth - branding is primarily a function of communications - has been laid to rest. Essentially, brand building IS a function of all of the Four Ps. The relative weight of each of the Ps will vary product to product and company to company depending upon the nature of the product.