Rewriting the marketing rulebook
Traditional marketing tactics dictate that organizations follow the 4P’s model of the marketing mix which is a more business-oriented model, as opposed to a customer-oriented one, consisting of the following variables: product, price, promotion, and place.
Modern marketing tactics, on the other hand, follow the 4C’s model of the marketing mix as proposed by Bob Lauterborn in an article written for Advertising Age back in 1990. Lauterborn declared that the 4P’s were no longer relevant and helpful in aiding today’s marketer address any real issues. Instead, he transformed the 4P’s in the variables he believed were vital.
He started with ‘consumer wants and needs’ as the primary focus of any organization’s marketing strategy. Next, he used the variable of ‘cost to satisfy’ to debunk price as the deciding factor in customers’ purchases. Following that was the third variable, convenience to buy, a vital concept in today’s world of 24/7 availability. The often neglected variable, i.e., communication was the fourth one, which implied that instead of the manipulative one-way communication of traditional marketing, organizations should invest in a two-way dialogue between the customer and the company. Therefore, the 4C’s model of the marketing mix came into existence that consists of the following variables: consumer, cost, convenience, and communication.
While on a surface level, the 4P’s and the 4C’s model may look like two sides of the same coin, there is a critical distinction between them; the 4C’s model reflects a change in the overall organizational mindset of viewing their customers as more than just an unspeaking and unthinking audience. 4C’s model encourages an overhaul in the traditional marketing process and value chain and urges marketers to view everything from a customer’s point of view. The model diverts action towards niche marketing, where the conversation is often one-to-one between customers and companies, and a more significant effort is put into understanding just what it is that customers truly want. This entails a thorough knowledge of the market a company wishes to target and come up with solutions designed to be optimal for both the organization and the customer.
In understanding the 4C’s model, one would do well to look into them in juxtaposition to the 4P’s model of the marketing mix. After all, it would be in the best interests of the marketer to consider both the customer’s and the organization’s point of view for creating effective marketing strategies.
Consumer vs. Product
Modern marketing tactics encourage marketers to focus on selling only that which customers are willing to buy, the information of which is acquired through detailed market research. This is exactly opposite of the previously used traditional marketing tactics of selling just about any product to the general audience regardless of whether the audience desires said product or not.
Sixty-three percent of CEOs see rallying their organizations around the customer as one of the top three investment priorities this year.
For years, businesses took a company first approach to marketing, but over the years, things have changed. With the customer being the king of the market now, companies have wised up and decided its a better idea to first ask the customer what they need to provide better experiences that lead to more customer loyalty.
Cost vs. Price
By definition, price is the amount of money that a consumer is willing to pay to acquire a good or service. Cost, on the other hand, is the sum of the value of all inputs to the production of said good or service such as land, labor, capital, and enterprise. Other factors, like the cost of time to acquire the product, the cost of conscience of consuming the product, the cost to change to a new product, the total cost of ownership, and the opportunity cost of not selecting an alternative, are also included in the cost of an offering.
Communication vs. Promotion
Lauterborn considered promotion to be a manipulative means of selling to an audience, without taking into account any feedback received in return. He emphasized having a two-way means of communication between the customer and the company. This approach encourages dialogues and feedback. It takes into account customers’ opinions on what they would prefer and what would satisfy them. This type of communication improves brand loyalty and sales for an organization and provides in-depth knowledge about their consumer base.
Eighty-six percent of respondents to a Harris Interactive survey said they would pay more if they could guarantee superior service. Eighty-nine percent of respondents who had recently switched from a business to its competitor did so because of poor service.
Convenience vs. Place
Thanks to the technological advancements, customers have no reason to physically seek out a location to meet their needs — they don’t even have to when there are endless options available online. The digital era requires a marketer to be aware of the current trends regarding the changing retail landscape and how to keep up with the customers to be able to cater to them in the means most convenient.
Summing-up
When it comes to creating a perfect marketing strategy, nothing’s a hit or a miss as long as something new is learned out of the experience. However, to save time and money, it’s wise to target the tech-savvy customers of today by making use of the 4C’s marketing model which provides a more customer-centric approach to drafting a marketing strategy that revolves primarily around customers and their needs.
