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Business : Marketing
Marketing - from "4 P's" to "4 C's" to "4 V's"
While I was studying marketing in the university, the "4 P's" of marketing approach was the core of the subject. Later, Bob Lauterborn, professor of advertising at the University of North Carolina discovered the "4 P's" has some major flaws that result in many product launching failures. He proposed a new set of "4 C's" marketing principle to replace the traditional "4 P's".
In our fast moving age of internet time, the "4 C's" is also facing with some dilemma and a new marketing tool of "4 V's" is being contemplated for application.
Product vs. Consumer vs. Validity.
The old Product approach is to develop and produce a product as good as possible to market and make sales. The Consumer approach is to study consumer wants and needs, and to manufacture products in response to those needs. Validity discover that product with great consumer needs may not be valid and need to be addressed. We have recently cases of product with great consumer demand such as toys and foods from China that needed to be moved out from the shelves due to high risk nature of the products.
Marketing should not only consider the wants and needs of the consumers, but also other product factors of safety, environment, and social issues, viz. Validity. Many internet products may be of great demand to consumers but should not be marketed to due to age inappropriateness, to cite an example.
Price vs. Cost vs. Value
Price charged to consumer is no longer a sufficient marketing parameter for it is only one part of consumer cost. If we sell product on e-bay, for example, we have to consider the cost of currency exchange lost and exchange risk to the client. Hence, a co-net work of Paypal was created to lower consumer buying cost. Or driving to eat a bowl of noodles would incur additional driving cost, etc.
Value marketing go one step further to advocate that lowest price and considerate cost are not sufficient in today's marketing solution. As more people are getting higher up in their standard of living, people are more value conscience of what they eat, what they wear, what they drive, etc. Value is more than just the price or the cost.
Place vs. Convenience vs. Venue
The whole Thai centuries old retail market is almost totally wiped out in a short time span of 3-4 years because of the shift of marketing from Place to Convenience. A distribution channel of providing just a place to buy is longer competitive. The convenience stores such as the ubiquitous 7-Eleven or giant super stores like Tesco, Big-C, have seized the retails sale by providing conveniences of all kind to customers.
Convenience needs to take one step higher up to the Venue level. Venue is not only providing place for clients to come. It is sales to your home. You can really shop while having your pajamas on. Pizza home delivery has snatched up a big portion of food sales all over the world. Food is just at your finger tips. How about internet sales, internet banking, or what have you? May be we should provide our customers with a buying venue of electronic gadget of some kind instead of a place or conveniences.
Promotion vs. Communication vs. Vogue
Lauterborn advocated communication instead of promotion. Promotion is one way street advertisement in telling what you think is best in the promoting product. Communication, however, applies two ways traffics between the buyer and seller to advertisement. It is an "interactive" program using phone, web site, etc. to get response from advertisement.
Vogue requires more than just getting a message across and 2 ways communications. It is saying that to make an advertisement successful, it must have vogue or in trend. It must be popular, acceptable, and has great public favor. Like fashion, advertisement has a popular fashion trend. This must be applied to squeeze out the best of promotion.
Personally, I see the three marketing sets of "4 P's" to "4 C's" to "4 V's" are just the same old wine ‘Ps' in a new bottle ‘C' and newer bottle "V'. How well the different tool performs not really of the tool by itself but the person who uses it. So which ever tool you choose, you should learn it thoroughly and apply it wisely.