Compare and contrast a four Ps approach to marketing versus the value approach (creating, communicating, and delivering value).
Marketing is an activity, institution sets, and processes for creating, delivering, communicating, and exchanging offerings that are valued by clients, customers, partners, and society.
Creating involves collaboration among customers and suppliers to produce offerings of value. Communicating is the process of learning from customers (Pearson & Books, 2014; 2013 ;). Delivering involves deliverance of offerings to consumer in a method that adds value. Exchanging is the process of trading the value of offerings.
Traditionally market components are viewed through four ps, which include
Product: goods and services offered, Promotion, which is communication, place is the location of a product where customers for purchase can access it (Tanner, 2011). Price is the money value of the exchanged product.
The above analysis gives four views on components of marketing. In one view, marketing is viewed as creating, communicating, delivering, and exchanging and the next view has components of marketing as product, promotion, and place price. These two views have similarities and differences.
Product and creation may be similar in that creation gives products for sale in the market. These can be tangible or intangible goods the difference comes in when product factors considers packaging. Packaging a product involves consideration of its lifecycle and growth phase and declining stages as the product approaches a period of saturation in the market. Moreover, a product retains its competitive nature through innovation to create a difference from one product to another.
Price and exchanging are similar in that it is the amount paid after purchase of a certain product. A commodities value is determined and exchange of money and the product takes place. However, price considers the value of the product other than the assumed component “exchange” since exchange does not consider the value of the product. Moreover, price assists sellers to realize when making losses and profits (Ovod, 2011). A product is adopted when the value brings profits to the seller and discarded when it brings losses. Product as a marketing component determines the considerations for customers towards certain products, their key features, their use, look, texture, experience, size, color, name, cost, and brand.
Place and delivering may be similar although their definitions differ. Place is the location where certain goods are situated for purchase. It also the distribution channel followed for goods to reach the market. Goods may be delivered to the market and stored in stores such as supermarkets and retail outlets. As a result, place utility is provided since more goods are offered for customers to choose. The customers have a place to choose their goods.
Delivering means transporting goods to the area required for purchase. Price determines the value of the product and service to the potential buyer (Rozek & Karlícek, 2014). . Price explains whether there can be addition of more customers in the market if there are slight price reductions. Could the profits add or reduce incase there are slight increases of price on added quality of goods. Price determines the discounts to be given to sellers and at what quantity should they be offered. The effect of changing prices on competitors is also considered.
Place explains the location where buyers look for certain goods and services. The kind of goods and the process of accessing the appropriate distribution channels are determined. Place may also give directions on whether to avail trade fairs, online submissions, catalogues and samples to customers to locate goods and services. It also helps determine competitors.
Promotion and communication are similar in that there must be communication between potential buyers and sellers for promotion to take place. Marketers use many promotion methods to create awareness (promote) of their products to people (Ovod, 2011). Promotions offer products and their benefits to the target people. Promotion involves advertising, public relations, sales promotion, and personal selling. Advertising includes packaging products in an attractive way for the public to notice it. In addition use of online ads.
Product promotions strategies help identify when and the place where sellers can communicate their marketing messages to their target customers (Rozek & Karlícek, 2014). The best advertising channel such as online, TV, radio, or billboards are chosen. The best time of promotion is also selected and the season for the goods offered together with other environmental issues that may dictate the time to launch the products. The best promotion methods are selected and the influence created graded.
In conclusion, all market components are interrelated in that products must be created to have commodities to supply to the market. Manufactured products should then be delivered to the market and an appropriate place to store them for sale is established. The place should be suitable and various measures to help customers identify them be taken. They may include providing brochures and pamphlets to give directions of the place. Price and exchange are related in that the value of product determines its price (Ovod, 2011). Means of exchange may include money and other commodities. The higher the value of a product, the higher the price, and profits. Promotion of the manufactured products requires good communication to customers. Advertisements and online promotion channels assist in increasing awareness among customers.
John F. Tanner, Jr. and Mary Anne Raymond. (2007). Chapter 1.what is marketing. Principles of marketing version 2.0, 1-90.
Ovod, A.(2011). 4p versus marketing strategy. Suite. Retrieved from https://suite.io/alla- ovod/50m222h
Pearson, D., & Books24x7, I. (2014; 2013 ;). The 20 ps of marketing: A complete guide to marketing strategy. GB: Kogan Page Ltd.
Rozek, J., & Karlícek, M. (2014). Customer lifetime value as the 21st century marketing strategy approach. Central European Business Review, 3(2), 28-35.