Chartered Institute of Marketing

The concept of the 4Ps of product, price, place and promotion was defined by Jerome McCarthy in 1964 as the combination of all factors which a manager can utilize to satisfy market needs.

· Product – what the customer wants from the product or service and what needs it satisfies

· Price – how the price compares with competitors and how you can make a profit

· Place – how and where you sell

· Promotion – how you reach your customers (marketing and advertising your product and service)

Some marketing theorists believe that 4Ps model is able to adapt to the changing face of marketing in the digital world, while others believe it is now obsolete and a new paradigm is required to meet the new challenges.

Those who favour the existing model argue that it is sufficient to add or subtract from the existing model. Three new Ps have been added by some marketers. These include People, which encompass the skill level of employees, Process, which means the tools to ensure you offer a consistent service, and Physical evidence, which includes premises, employees and paperwork.

People who criticize the 4Ps argue that it needs a clearer customer focus. Recent marketing theory has added the more customer-orient 4Cs. Customer wants and needs is included in Product, Cost to the customer is included in Price, Convenience for the customer is included in Place and Communication with the customer is included in Promotion.

· Convenience for the customer – point of sale (the location)

· Customer wants and needs – finding a solution to customer problems

· Cost to the customer – the total price a customer pays, including things like shipping

· Communication with the customer – two-way communication with customers about products

FOLLOW-ON QUESTIONS…

1. Explain the concept of 4Ps, as well later added 3Ps.

2. What do the 4Cs stand for? Compare 4Ps and 4Cs.

3. What are the benefits of selling On-& Offline?

4. How are individual consumers different from companies?

5. What do you think are the advantages to you as a customer in buying products direct from the manufacturer over the Internet?

Case study «Market research»

ISSUE

Market research aims to find about consumers’ needs so that manufacturers and producers can develop and price products more appropriately. It is now common practice for market research companies to sell the results of surveys to companies. You are members of a team responsible for market research questionnaire design. You have been asked to design a questionnaire which will be mailed to a large number of households. In order to encourage a response, your clients are making the following free offers:

· money-saving coupons for the clients’ products

· cash prizes to respondents

· special offers to selected respondents.

Your clients operate in a number of different sectors. Their aim is to get information about the profile of existing and potential users of their products and services. The sectors are:

· mobile phones

· holiday travel

· fast food restaurants

· tobacco

· banking

First discuss the main categories for your questionnaire, then design a questionnaire to be sent to households.

AGENDA

1. Review objective of exercise

2. The main categories and sections of the questionnaire

3. The design of the questionnaire

Дата добавления: 2015-11-14