Thursday, February 14, 2013

Marketing mix

Marketing mix is a tool used in marketing. It is one of the crucial instruments when trying to determine a product or brand. The most associated acronym used is four Ps, although it has been sometimes expanded into seven Ps or even eight Ps in order to better address different products.
In recent times a concept of four Cs has also been introduced with the intention of replacing the four Ps. Today there are two four Cs theories out there – Lauterborn and Shimizu.

Classic definition of four Ps is: Price, Product, Promotion and Placement.
The four Cs definition is a bit trickier since there are two theories out there.

Four Cs: the consumer-oriented model
Robert F. Lauterborn introduced a four Cs classification in 1993 which is a more consumer-oriented version of the four Ps that attempts to better fit the movement from mass marketing to niche marketing:
•    Product part of the four Ps model is replaced by "Consumer“, shifting the focus to satisfying the consumer needs. By defining offerings as individual capabilities that are combined and focused to a specific industry, the result is a custom solution rather than the pigeon-holing of a customer into a product.
•    Price is replaced by "Cost", reflecting the total cost of ownership. Many factors affect Cost, including but not limited to the customer's cost to change or implement the new product or service and the customer's cost for not selecting a competitor's product or service.
•    Promotion is replaced by "Communication", which represents a broader focus. Communications can include advertising, public relations, personal selling, viral advertising, and any form of communication between the organization and the consumer.
•    Placement is replaced by "Convenience". With the rise of Internet and hybrid models of purchasing, Placement is becoming less relevant. Convenience takes into account the ease of buying the product, finding the product, finding information about the product, and several other factors.

Second four Cs theory will be explained in the next article.

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