Compare and contrast two marketing strategies: 4Ps and value approaches to marketing. The 4Ps approach to marketing was introduced in 1950s and is now viewed as a traditional approach to marketing. Unlike the value approach, which is more focused on delivering value to a fantastic read the customer, the 4Ps approach is more focused on the product itself. The 4Ps Marketing Strategy The major components of the 4Ps approach are product, price, place, and promotion. That means that the first step in the marketing plan is a product. Product. Companies that follow this approach try to create a consumer product or service that is supposed to be unique or better than that of the competitor 's. Uniqueness or some upgrades in the product were believed …show more content…
Another aspect is price. Under the 4Ps approach price could also become a competitive advantage. For instance, if the product is not unique itself, a certain pricing strategy, such as price reduction, could potentially sell the product. Place. The next step is place. It involves creating or finding distribution channels through which the product would be sold. Therefore, this step in 4Ps marketing involves delivering product to the points where customers can buy it. Promotion. Finally comes promotion - informing the customer on the qualities and advantages of the product so that the potential buyer learns about the product, prefers it to those of the competitors, and has an opportunity to buy it at some place. Though the 4Ps approach has been working for companies for years, it became less effective as the market has developed. This happened due to the fact that product, price, place, and promotion do not include all the activities that are related to marketing a product. As a result, a more efficient approach was developed - the value approach. The Value Approach to Marketing The value approach calls for creating, communicating, and delivering …show more content…
The next step is communicating. It can be compared to promotion in the 4Ps approach, because it involves informing the customer on the offer. The difference is in information delivered to the customer. The 4Ps approach promotes and advertises the product, while the value approach - the value - product plus service, benefit, and enjoyment that can be received with the product. In addition, the value approach involves not only telling the customers how good the offering is, but also learning from them about their preferences and desires. Delivering value. Finally comes delivering. It may be compared to place in the 4Ps approach. However, it is different because, while place requires just having a place where the customer can buy a product, delivering also involves making sure the customer will be able to get the most of the product. Therefore, it can be said that the 4Ps approach is more focused on product, while the value approach is, on the contrary, focused on customer - it is a more customer-oriented marketing strategy, which, in some aspects, is close to one-to-one marketing. In addition, the value approach is more precise, thus helping marketing professionals in creating and marketing all the 4 types of their offerings more
Kotler and Keller (2014) develop on what product represents in the marketing mix, as the idea centers around its design, quality and packaging. Continuing with the Four P model, price should be considered when marketing a product. The price component asks one to determine the list price, discounts, allowances, and payment period of a product (Kotler & Keller, 2014). Finally, Kotler and Keller (2014) list promotion and place as the final two variables associated with the older Four Ps. Promotion deals with how a product is advertised and what type of sales force will be utilized, while place is associated with the channels and locations for which your product will be featured (Kotler & Keller,
Value Proposition is defined as "A business or marketing statement that summarizes why a consumer should buy a product or use a service”. This statement should convince a potential consumer that one particular product or service will add more value or better solve a problem than other similar offerings." To structure a proper value proposition for a company, you must view the business model and three identifying features of the business. These three features are the Goals, Core Activities, and the Product Market Focus. The goal of a company is what it aims to accomplish. In regards to Imperial Oil ltd., their main end goal would be to create profits for their shareholders and to increase the overall value of the company. With creating more value to the company, the business can use funds to access and develop more research and advance their technology in growing the corporation. The core activities of the business are what value creating tasks will help the business run properly and how t...
Individually, each of the sections are factors that contribute to influencing a consumer to purchase a product and collectively they are called the Four P’s of Marketing. Some product features and benefits that we have would be our consumer friendly packaging. All of our packaged meats, including sausages are sealed in vacuum sealed plastics, which not only prevents meats from spoiling but it also preserves freshness and in addition to this, many of our sausages are pre-seasoned meaning that it reduces the amount of work needed by the consumer. The price of our product is very fair as well, as a vast majority of our livestock is supplied through our own agribusiness side. This not only makes it cheaper for us to make the product due to lower labor and supply costs, but it also makes the product more cheaper and affordable for the consumer. Our promotion is currently done mainly through online advertisements or on the TV as these are the types of promotion that reach the most consumers, and we currently market our products to retailers and wholesalers with transportation mainly done through land travel in domestic
The author of this article wrote this to tell people the “4 P’s” are out of date, and not as helpful as it has been in the past. The author wanted people to stop using the basic “4 Ps” of marketing because in today’s B2B world (business to business) these steps do not work as well as they had in the past (www.investopedia.com). The author is trying to convert the audience to the SAVE method which has the same concept as the “4 P’s”, but is newer and is supposed to be more effective in the B2B world. The SAVE method shifts from: product to solution, place to access, price to value, and promotion to education. The author believes the SAVE method will be the “centerpiece of a new solution-selling
Sheth, J., & Sisodia, R. (2012). The 4 A's of Marketing: Creating Value for Customer, Company and Society. Routledge.
Promotion - This is activities that communicate to the target market of the product, and convinces them to purchase.
When it comes to marketing in business, there are rules to follow. One of the biggest rules is the four Ps of marketing. The four Ps of marketing are as follows; product, price, place, and promotion. The four Ps are crucial to having a good marketing scheme for a product. The Walt Disney Company have become very good at marketing over the years. Part of the reason for this is their amazing ability to use the four Ps.
You will read in the paper the differences between the 4P’s and the 4C’s. I will outline their different approaches in the world of marketing, how they are related to each other and how they are applied within organizations. I will also outline the different impact they have on businesses and which works better together and on its own.
Place - Many marketers state that marketing is all about putting the right product, at the right price, at the right place, at the right time. With this said, the place is the location and methods of getting the product to the customer.
Ehmke C, Fulton J, and Lusk J, (2005). Marketing’s Four P’s: First Steps for New
Grewal and Levy (2010: p32) state that ‘a marketing strategy identifies, (1) a company’s target market(s), (2) a related marketing mix - their four P’s and (3) the bases upon which the firm plans to build a sustainable competitive advantage’.
In order to sell a product, a company must transform a product and turn its use value into an exchange value. The company needs to make their product seem more valuable than it is actually
Now that we have discussed how sales and marketing should share revenue accountability, we are now going to step through each of the four steps of our buying process; Research, Tryoritize, Buy and Optimize. It may be difficult for marketing teams to change their mindset and see its value in a different way going forward.
Value is what the customer wants and only what the customer wants. This requires a precise understanding of the specific needs of the customer. It is said that more than 95% of process activities do not add
Prepare an essay comparing and contrasting a 4-P (price, product, place and promotion) approach to marketing versus the value approach (creating, communicating, and delivering value). What would you expect to be the same and what would you expect to be different between two companies who apply one or the other approach?