Over the weekend, I was inspired by a young marketer's post on Medium: "The 4Ps are dead: What to focus on instead."
I wrote an article on this topic, calling for new ideas and challenging traditional marketing paradigms, and noted the good qualities of the ideas of young marketers.
4P's Are Dead ("That's Right, 20th Century")
Now let's get to the point of this article: that the 4Ps are dead. Why? Because it is an academic basis for marketing that is not practical or functional. The 4P marketing framework has been widely used since the 1960s when it was formulated by E. Jerome McCarthy (see Wikipedia "4P Marketing Framework"). Supporting the 4Ps of product, pricing, promotion and placement. I threw this out a few years ago: "Separate the P's" from the 4P Marketing Framework. But the shock of the weekend got me thinking again. And I came to the same conclusion: the 4Ps are "tired" not "connected" as the digital youth would say. And the 4Ps must be removed and replaced with new thinking that is both practical and effective. Just because you've been wearing those 2 pairs of shoes for "sixty years" (get it? 2 pairs = 4) doesn't mean you shouldn't throw out the old ones and buy new ones.
Here's how to deal with it.
Location . In older frameworks, marketers were encouraged to consider where their products are available. After all, if customers can't find a store to buy a product, you won't get sales. Sounds simple and completely logical: "sixty years ago". These days, there's Amazon, Costco, Instacart, not to mention numerous thrift stores. Issues of "location" or "customer access" are often addressed. In fact, there may be half a dozen stores in one area that sell the same products that customers are looking for. So, buyers have a lot to choose from. Also, most marketers in the marketing department can no longer choose the "place" where the product is sold; That's what sales does. For example, P&G wholesales to Walmart, Target, supermarkets, Amazon, etc., and customers can shop at any location that is convenient for them.
Price - Which brings us to price. The old concept was that marketers should consider price: how to price a product. Because if the price is too high, no one will buy the product; If the price is too low, you're leaving the proverbial "money on the table." Sounds simple and completely logical: "sixty years ago". Now there is a price comparison on the net. This not only means comparing the price of the same product across different e-commerce websites, but also comparing the price of the same product in physical stores. But why would buyers go to a store when they can buy the cheapest TV online and it offers "free shipping." I understand that most consumers still go to the store for milk. In today's world, consumers have so many different places to buy the same product, and so many virtually identical products to choose from, that the "selling price" is set by the market, although it is largely determined by the "financial segment". . In large companies. . Most marketers in the marketing department do not set prices.
Propaganda : Supporters of the old scheme may still defend it as useful because it was done before. Finally, it suggests that marketers should think about advertising: Who are the customers, what are we offering them to buy? Sounds simple and completely logical: "sixty years ago". Today, thanks to the Internet and mobile devices, consumers have instant and constant access to information. The seller can say whatever he wants in the "commercial message", that is, in the advertisement.
Skeptical consumers tend to ignore advertisements or reduce their trust because they know the seller is trying to sell them something. Regardless of the ad delivery channel (online or offline), consumers do not go and buy a product after viewing an ad. They seek additional information to support their own purchasing decisions; For example, they can read online reviews, ask other customers about their product experiences, etc. Even if they want to buy a big screen TV in a store, they can instantly access information such as prices and customer ratings (see slide below). Armed with constant and immediate information, consumers rarely think twice about what the salesperson is telling them.
So what to do? Think about the consumer's "missing connection" and what it takes to complete the customer journey to purchase. See: The Missing Link in Marketing.
Product : This brings us to the old end product P. The old concept suggests that marketers should consider the product. Sounds simple and completely logical: "sixty years ago". Marketers have no control over the product these days. They bring the product to its final commercial form and are tasked with finding ways to sell it: finding ideal customers, creating messages that will convince them to buy the product, and communicating the message through appropriate channels. Marketers work in departments other than R&D and product development; Even when marketers receive feedback from customers, converting that feedback into meaningful changes to the product itself is a difficult process.
Also, many of the products that need to be sold are identical and functionally indistinguishable from each other, making marketing and word-of-mouth virtually impossible. Consider the following three: 1) Visa, MasterCard, American Express, 2) Hertz, Avis, Budget, 3) Nike, Adidas, Puma, etc. How would you explain the difference to someone and advise them to choose one? ? It's hard, isn't it? Because the product/service of each of these three is functionally and perceptually identical; Even a consumer cannot explain to his friend what the difference is and why he would prefer one over the other. Think how hard a salesperson's job is when trying to sell something like this. They can influence the product and bring news to it so that it has something unique like b. Unique Selling Proposition (USP), if the product has one, it will be easy to sell and share (ie "word of mouth"). ").
Why 4P is a good theoretical framework that is rarely used in everyday marketing
To summarize: 1) Most marketers in today's marketing department do not choose a niche . The space is defined by the wholesale sales force at Walmart, Costco, Amazon, etc. As long as potential customers can simply "walk up" and buy the product, marketers don't need to figure out the "location." 2) Most sellers in the marketing department do not set prices ; The Ministry of Finance has already done this. Furthermore, the "price" of products in a highly competitive industry or product group is determined by the market; Just make sure you find the "sale price" quickly. Thinking about the price won't make any difference. 3) Most marketers in the marketing department do not create or update products ; The product development and research and development department did. Even the area where most of today's marketers can make a difference, advertising , is less influential than it used to be because today's consumers have constant and instant access to information. You don't care about your ad or promotional message.
Note that today's thriving DTC (Direct to Consumer) brands are a notable exception to the above. Because older companies do not have closed divisions, customer response can and does affect prices and products (range).
Is the dust more real and tangible than the old frame?
Much more practical and effective was what a young marketer recommended in a post on Medium: 1) collect a prospect's contact information, but make sure you provide value before asking for their contact information, 2) build a relationship of trust with your prospect, by giving Develop over time, including “devaluing” them, 3) helping them answer questions so they can move through the customer journey and move to a purchase event, 4) provide value by ensuring they receive or perceive value. , Than the price paid, and 5) tell others about the incredible value your customers received, how satisfied they were with the experience, and even help other customers move faster along the customer journey. These ideas are even more relevant because the company this young marketer works with is B2B (business to business) and the sales cycle is extremely long.
For a more detailed discussion of these old (P) hearts, see in the Peel Away P section of the 4P Marketing Framework. If you see this on your own and don't agree with me, please contact me and let's discuss it. If instead you blindly cling to old concepts that are funny in academia and have been taught for decades by academics who love theory but haven't practiced marketing in real companies, feel free. They do. If you want to argue with me! More precisely, give the data and show me. I am a scientist and look for evidence, not opinion. And you should too. Think for yourself. Even if frameworks are taught in marketing classes, are they applicable to you? Is it practical? Do you understand it enough to use it? What alternatives and better ways can you see and do yourself?
When should you stop this academic structure?
I encourage senior managers to dust off the 4P concept from time to time, such as in corporate meetings and team building exercises. In the innovation workshops I've run for clients over the years, the 4Ps provide a useful framework for thinking outside of the marketing department. Ideally, you should invite team members from different departments to this “place outside the office” so they can come together to “practice the 4Ps”. Marketers can come up with innovative ideas for products; Sales teams can provide information on where products can be sold; Financial professionals may consider adjusting prices and even products (such as "family-friendly" chips packets or convenient mini-to-go sizes, etc.). The 4P framework is fun to use, especially when it expands the thinking of today's marketers beyond their division, the marketing department. Instead of accepting the 4P scheme because "it's been done for sixty years", use it, play with it, but most importantly, think independently because it is what it is.
His way of thinking about marketing is as accurate as any old professor teaching marketing, myself included. When I taught marketing at Rutgers and NYU, I learned more from my students than from them. This is because I have given you the framework, questions and suggestions. And I introduced them to real-world examples of work, experience of dos and don'ts, and independent thinking that challenged assumptions and "how things were done." The perspective of a young marketer, as well as the simplicity and clarity of the recommendations in the post on Medium, come from practical experience and independent thinking, without the limitations of "old thinking". I applaud and call for more. If the 4Ps can help you be like this young salesperson, use the 4Ps. It's not dead for everyone. “Good marketing comes from those who think, not act. "
One final note: As promised, no names or pronouns. No personal attacks, just attacks on "outdated thinking" and "groupthink".
