Deutsch: Zusammenhang zwischen Marketing-Mix, 4 Ps, 4Cs und Marketing-Gleichung (Photo credit: Wikipedia)
English: Sustainability Marketing follows six key elements: socio-ecological problems, consumer behavior, sustainability marketing values and objectives, sustainability marketing strategies, sustainability marketing mix and sustainability marketing transformation. This picture is giving an overview about the interconnections of the six key elements (Photo credit: Wikipedia)
Strategic Marketing Models by senior Editors of Wikipedia including Stephen Darori
There are many companies especially those in the Consumer Package Goods (CPG) market that adopt the theory of running their business centred around Consumer, Shopper & Retailer needs. Their Marketing departments spend quality time looking for “Growth Opportunities” in their categories by identifying relevant insights (both mindsets and behaviours) on their target Consumers, Shoppers and retail partners. These Growth Opportunities emerge from changes in market trends, segment dynamics changing and also internal brand or operational business challenges.The Marketing team can then prioritize these Growth Opportunities and begin to develop strategies to exploit the opportunities that could include new or adapted products, services as well as changes to the 7Ps. Marketing participants often employ strategic models and tools to analyze marketing decisions. When beginning a strategic analysis, the 3Cs can be employed to get a broad understanding of the strategic environment. An Ansoff Matrix is also often used to convey an organization’s strategic positioning of their marketing mix. The 4Ps can then be utilized to form a marketing plan to pursue a defined strategy. Marketing Mix Modeling is often used to simulate different strategic flexing go the 4Ps. Customer lifetime value models can help simulate long term effects of changing the 4Ps, e.g.; visualize the multi-year impact on acquisition, churn rate, and profitability of changes to pricing. However, 4Ps have been expanded to 7 or 8Ps to address the different nature of services.
The marketing mix is a business tool used in marketing and by marketing professionals. The marketing mix is often crucial when determining a product or brand’s offer, and is often synonymous with the four Ps: price, product, promotion, and place; in service marketing, however, the four Ps have been expanded to the Seven Ps or eight Ps to address the different nature of services.
Integrated marketing communications
Integrated Marketing Communication (IMC) is a term that emerged in the late 20th century regarding application of consistent brand messaging across myriad marketing channels. The term has varying definitions and the differences can play a part in how IMC is viewed and used:
- The first definition for integrated marketing communication came from the American Association of Advertising Agencies (also 4A’s) in 1989, defining IMC as “an approach to achieving the objectives of a marketing campaign through a well-coordinated use of different promotional methods that are intended to reinforce each other.”[1] The 4A’s definition of IMC recognizes the strategic roles of various communication disciplines (advertising, public relations, sales promotions, etc.) to provide clarity, consistency, and increased impact when combined within a comprehensive communications plan. Basically, it is the application of consistent brand messaging across both traditional and non-traditional marketing channels.
- The Journal of Integrated Marketing Communication from the Medill School of Journalism at Northwestern University refers to IMC as “a strategic marketing process specifically designed to ensure that all messaging and communication strategies are unified across all channels and are centered around the customer.”[2] IMC is used practically to allow one medium’s weakness to be offset by another medium’s strength, with elements synergized to support each other and create greater impact.[3]
- A more contemporary definition states, “True IMC is the development of marketing strategies and creative campaigns that weave together multiple marketing disciplines (paid advertising, public relations, promotion, owned assets, and social media) that are selected and then executed to suit the particular goals of the brand.”[4] Instead of simply using various media to help tell a brand’s overall story, with IMC the marketing leverages each communication channel’s intrinsic strengths to achieve a greater impact together than each channel could achieve individually. It requires the marketer to understand each medium’s limitation, including the audience’s ability/willingness to absorb messaging from that medium. This understanding is integrated into a campaign’s strategic plan from the very beginning of planning – so that the brand no longer simply speaks with consistency, but speaks with planned efficacy.[5] This concept inherently provides added benefits that include: a singular/synchronized brand voice and experience, cost efficiencies generated through creativity and production, and opportunities for added value and bonus.
In recent times, the concept of four Cs has been introduced as a more customer-driven replacement of four Ps.[1] And there are twofour Cs theories today. One is Lauterborn’s four Cs (consumer, cost, communication, convenience), another is Shimizu’s four Cs (commodity, cost, communication, channel).
History
The term marketing mix was coined in an article written by Neil Borden called “The Concept of the Marketing Mix.”[2] He started teaching the term after he learned about it from an associate, James Culliton, who in 1948 described the role of the marketing manager as a “mixer of ingredients”; one who sometimes follows recipes prepared by others, sometimes prepares his own recipe as he goes along, sometimes adapts a recipe from immediately available ingredients, and at other times invents new ingredients no one else has tried.
McCarthy’s Four Ps
The marketer E. Jerome McCarthy proposed a four Ps classification in 1960, which has since been used by marketers throughout the world.
Classification
Category |
Definition |
Product |
A product is seen as an item that satisfies what a consumer demands. It is a tangible good or an intangible service.For example good will for intangible. Tangible products are those that have an independent physical existence. Typical examples of mass-produced, tangible objects are the motor car and the disposable razor. A less obvious but ubiquitous mass-produced service is a computer operating system.Every product is subject to a life-cycle including a growth phase followed by a maturity phase and finally an eventual period of decline as sales falls. Marketers must do careful research on how long the life cycle of the product they are marketing is likely to be and focus their attention on different challenges that arise as the product move.The marketer must also consider the product mix. Marketers can expand the current product mix by increasing a certain product line’s depth or by increasing the number of product lines. Marketers should consider how to position the product, how to exploit the brand, how to exploit the company’s resources and how to configure the product mix so that each product complements the other. The marketer must also consider product development strategies.[1] |
Price |
the amount a customer pays for the product. The price is very important as it determines the company’s profit and hence, survival. Adjusting the price has a profound impact on the marketing strategy, and depending on the price elasticity of the product, often it will affect the demand and sales as well. The marketer should set a price that complements the other elements of the marketing mix.[1]When setting a price, the marketer must be aware of the customer perceived value for the product. Three basic pricing strategies are: market skimming pricing, market penetration pricing and neutral pricing. The ‘reference value’ (where the consumer refers to the prices of competing products) and the ‘differential value’ (the consumer’s view of this product’s attributes versus the attributes of other products) must be taken into account.[1] |
Promotion |
all of the methods of communication that a marketer may use to provide information to different parties about the product. Promotion comprises elements such as: advertising, public relations, personal selling and sales promotion.
Advertising covers any communication that is paid for, from cinema commercials, radio and Internet advertisements through print media and billboards. Public relations is where the communication is not directly paid for and includes press releases, sponsorship deals, exhibitions, conferences, seminars or trade fairs and events. Word-of-mouth is any apparently informal communication about the product by ordinary individuals, satisfied customers or people specifically engaged to create word of mouth momentum. Sales staff often plays an important role in word of mouth and public relations (see ‘product’ above).
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Distribution(Place) |
refers to providing the product at a place which is convenient for consumers to access. Various strategies such as intensive distribution, selective distribution, exclusive distribution and franchising can be used by the marketer to complement the other aspects of the marketing mix.
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The seven Ps is an additional marketing model that refers to the already mentioned four Ps, plus ‘Physical evidence’, ‘People’, and ‘Process’:
Classifications
Category |
Definition |
Physical evidence |
elements within the store—the store front, the uniforms employees wear, signboards, etc. |
People |
the employees of the organization with whom customers come into contact. |
Process |
the processes and systems within the organization that affects its marketing process. |
These latter three factors are not cited nearly as often as the first four.
Lauterborn’s Four Cs
Robert F. Lauterborn proposed a four Cs classification in 1990[6] which is a more consumer-oriented version of the four Ps that attempts to better fit the movement from mass marketing to niche marketing
Four Ps |
Four Cs |
Definition |
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A company will only sell what the consumer specifically wants to buy. So, marketers should study consumer wants and needs in order to attract them one by one with something he/she wants to purchase. |
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Price is only a part of the total cost to satisfy a want or a need. The total cost will consider for example the cost of time in acquiring a good or a service, a cost of conscience by consuming that or even a cost of guilt “for not treating the kids”. It reflects 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
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While promotion is “manipulative” and from the seller, communication is “cooperative” and from the buyer with the aim to create a dialogue with the potential costumers based on their needs and lifestyles.It 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. |
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In the era of Internet, catalogues, credit cards and phones people neither need to go any place to satisfy a want or a need nor are limited to a few places to satisfy them. Marketers should know how the target market prefers to buy, how to be there and be ubiquitous, in order to guarantee convenience to buy.With the rise of Internet and hybrid models of purchasing, Place 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
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Four Cs: in the Seven Cs Compass Model
(Corporation and consumer -oriented model)
After Koichi Shimizu proposed a four Cs classification in 1973, this was expanded to the Seven Cs Compass Model to provide a more complete picture of the nature of marketing in 1981. It attempts to explain the success or failure of a firm within a market and is somewhat analogous to Michael Porter’s diamond model, which tries to explain the success and failure of different countries economically.
The Seven Cs Compass Model are:
The four elements in the Seven Cs Compass Model are:
“P” category |
“C” category |
“C” definition |
Product |
(C2)Commodity |
(Original meaning of Latin: Commodus=convenient) : It is not “product out”. The goods and services for the consumers or citizens. Steve Jobs has been making the goods with which people are pleased. It will not become commoditization if a commodity is built from the start. |
Price |
(C3)Cost |
(Original meaning of Latin: Constare= It makes sacrifices) : There is not only producing cost and selling cost but purchasing cost and social cost. |
Promotion |
(C4)Communication |
(Original meaning of Latin:Communis=sharing of meaning) : marketing communication : Not only promotion but communication is important. Communications can include advertising, sales promotion, public relations, publicity, personal selling, corporate identity. |
Place |
(C5)Channel |
(Original meaning is a Canal) : marketing channels. Flow of goods. |
The compass of consumers and Circumstances (environment) are:
- (C6)Consumer – (Needle of compass to Consumer)
The factors related to consumers can be explained by the first character of four directions marked on the compass model. These can be remembered by the cardinal directions, hence the name compass model:
In addition to the consumer, there are various uncontrollable external environmental factors encircling the companies. Here it can also be explained by the first character of the four directions marked on the compass model:
These can also be remembered by the cardinal directions marked on a compass. The Seven Cs Compass Model is a framework in Co-marketing (Symbiotic marketing). It has been criticized for being little more than the four Ps with different points of emphasis. In particular, the seven Cs inclusion of consumers in the marketing mix is criticized, since they are a target of marketing, while the other elements of the marketing mix are tactics. The seven Cs also include numerous strategies for product development, distribution, and pricing, while assuming that consumers want two-way communications with companies.
An alternative approach has been suggested in a book called ‘Service 7’ by Australian Author, Peter Bowman. Bowman suggests a values based approach to service marketing activities. Bowman suggests implementing seven service marketing principles which include value, business development, reputation, customer service and service design. Service 7 has been widely distributed within Australia.
Model & Stages
Similar to the definition of IMC, models of the IMC approach vary according to the source cited. Frequently, models stress the importance of blending various marketing tools to maximize the customer experience and value. IMC models also often emphasize the lack of a specific hierarchy of importance in the IMC stages: all components of the model play an equally important role and a company may or may not choose to immediately implement any or all of the integration strategies.[9]
- Stage one: Awareness: Knowledge of changing business, social, political and cultural trends creates the demand for a new approach to marketing.
- Stage two: Image integration: Having a consistent image, message and feel to an organization is crucial. The image reflected in corporate symbols serves as an important element for maintaining consistency in an organization.
- Stage three: Functional integration: Analyzing the strengths and weaknesses of each functional area of communication (public relations, event planning, media, etc.), and determining how the different areas can come together to create an effective campaign.
- Stage four: Coordinated integration: All communication functions become equal in their potential to influence company marketing efforts and many integration barriers cease to exist.
- Stage five: Consumer based integration: The elements of the different communication functions begin to work together. The campaign begins to achieve greater marketing effectiveness because only fully targeted consumers are exposed to the strongest and most effective forms of marketing and media.
- Stage six: Stakeholder based integration: Beyond just the customer, there are stakeholders who depend on the positive outcome of marketing campaigns. Companies carefully identify stakeholders, determining who can or will be affected by the success or failure of their campaign. At this stage of integration, the IMC expands from a sales-driven goal to a broader communication goal. This means that a company needs to enhance past marketing efforts through clear, correct and open communication between all parties involved.
- Stage seven: Relationship management integration: A fully integrated communication strategy exists that brings customers and stakeholders into direct contact with the business.
Schultz and Schultz identified four levels of IMC through which organizations appear to progress. These stages are not discrete, finite stages with well-defined boundaries Ultimately, however, to be truly integrated an organization needs to demonstrate competency in the activities and requirements of each of the four levels.
Four levels of IMC developed by Schultz and Schultz (1998)
- Level 1: Tactical Coordination and Marketing Communications Initial IMC focus is on the tactical coordination of diverse marketing such as advertising, promotion, direct response, public relations, and special events. This level focuses on delivering “one sight, one sound” via marketing communication.
- Level 2: Redefining the Scope of Marketing Communication The organization begins to examine communications from the customer’s point of view. Marketing communication begins to give consideration to all sources of brand and company contact a customer has with the product or service. Management broadens the scope of communication activities to encompass and coordinate internal marketing employees, suppliers, and other business partners and align with the existing external communication programs.
- Level 3: Application of Information Technology An organization’s application of empirical data using information technology to provide a basis identity, value, and monitor the impact of integrated internal and external communication programs to key customer segments over time.
- Level 4: Financial and Strategic Integration The emphasis shifts to using the skills and data generated in the earlier stages to drive corporate strategic planning using customer information and insights. Organizations re-evaluate their financial information infrastructure.
The Growing Importance of Integrated Marketing Communications
Integration has become an essential concept in marketing because technological advances have changed how business stakeholders interact. Marketing theory that was established during the discipline’s formative years has been overtaken by the complexities of real-time, multimodal, multi directional communication.
A few examples help illustrate the growing importance of integration:
Search marketing: When someone is considering buying a product or service they will often conduct an online search. What they find, on Google and other search engines, as well as information from news sites, review sites, directories, videos and place-based searches, are presented together, so like it or not, there is a level of integration. The online experience will affect their attitudes towards a brand and their behavior. Marketers therefore need to concern themselves with making sure their brand is found ahead of competitors’ and then ensuring their audience has a positive and helpful experience.
Accessibility & convenience: Consumers expect information and services that relate to a brand to be conveniently accessible via its website. For instance when a consumer visits Virgin.com they are able to book a flight, manage their money, top up their mobile phone plan or find up-to-date news about the company.
Aggregation of information and services: The traditional demarcation between a company, its suppliers and customers has become confused. For instance the Apple iTunes app store aggregates software and information from app makers, along with reviews provided by consumers. Product promotion, delivery, service and information from many different sources are seamlessly presented together.
Social media: Traditionally businesses were largely in control of their brand communications. Now brand communications are multidirectional as consumers can easily share, comment and create content. Brands can use this to their advantage by creating appealing content. For instance Unilever’s campaign for Dove, The Dove Real Beauty Sketches went viral with over 54 million views on YouTube.
Growth of mobile: The growing penetration of smartphones with fast internet connectivity means that marketers need to take into consideration integration between the online experience and place-based experiences. For instance when a consumer downloads the Target app they are able to receive coupons to their mobile phone and redeem them at the checkout by presenting the coupon barcode to the cashier.
Marketing activation
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Marketing |
Key concepts |
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Promotional contents |
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Promotional media |
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Marketing activation is the execution of the marketing mix as part of the marketing process. The activation phase typically comes after the planning phase during which managers plan their marketing activities and is followed by a feedback phase in which results are evaluated with marketing analytics.
Depending on the business objective, two types of marketing activation can be used as part of a marketing strategy.
- Brand activation, sometimes called brand engagement which focuses on building a longer term emotional connection between the brand and the customer.
- Activation based on direct-response marketing will focus on generating immediate sales transactions.