Finance free essays:The 4Ps vs. the Value Approaches to Marketing
The 4Ps vs. the Value Approaches to Marketing
The 4Ps marketing strategy has been adopted by organizations since 1950s. As such, it is viewed as a traditional marketing approach (Richard et al., 2015). Recently, however, business organizations have found the 4Ps strategy to be ineffective in meeting the needs, interests and preferences of the consumers and enabling them to gain competitive edge. Consequently, firms have replaced the 4Ps strategy with a more effective strategy, the value approach (Richard et al., 2015). Unlike the 4Ps strategy that is mainly focused on the product, the value approach is mainly focused on delivering value to the consumers. In this regard, this paper explores the differences between the two marketing strategies.
The 4Ps marketing approach comprises of four components, namely promotion, place, product and price. Firms adopting the strategy focus on making their products unique or developing new products. The approach is based on the idea that developing a unique or a new product enables an organization to gain competitive advantage over the competitors (Goi, 2009). Second, the 4Ps strategy is based on the notion that the price charged by a firm for a product or service can be a source of competitive advantage. If a product is not unique or new, pricing strategies such as price reduction are believed to have potential to enable firms gain competitive advantage (Goi, 2009).
In the 4Ps model, place entails the distribution channel that a product is taken through until it reaches to the final consumer. The 4Ps model is based on the notion that finding or creating an effective distribution channel through which a product will be passed to strategic points where customers can access easily and buy can be a source of competitive advantage. Last, promotion entails informing the consumers about the qualities of a product so that they prefer it to the products sold by the competitors.
Conversely, the value approach is based on three main steps. The first step involves creating value. Since the product is created at this step, the step can be compared to the product step in the 4Ps model. Unlike the values approach, however, the creation step in the value approach is focused on developing products that are have value and extra benefits to the consumers. For the purpose of illustration, consider two firms selling bar soaps, one adopting the 4Ps model and the other one adopting the value approach. The two firms are going to create unique bar soaps. However, the firm adopting the value approach will go a step further to add value its bar soap, through efforts such as adding natural and reducing artificial ingredients and attaching prizes for the customers.
The second step in the value step is the communication of value. Since communication of value involves explaining to the customers about the qualities of a product, the step can be compared to the promotion step in the 4Ps model. Unlike promotion in the 4Ps model, however, the value approach is focused on communicating value, the enjoyment and benefits of a product. Also, the value approach is focused on communicating about the convenience involved in purchasing a product. Considering the illustrations given earlier, both firms will focus on promoting and advertising their soaps. However, the firm adopting the value approach will go a step further to explain the health benefits of using its soap, the good packaging of the soap and the valuable services offered at the retail stores.
The last step in the value approach is delivery of value. Delivery of value can be compared to the place step in the 4Ps approach. Unlike the place step, however, delivery of value is focused on ensuring that “the consumers get the most the most of the product” (Goi, 2009). In the example given earlier, both firms will focus on delivering soap to strategic points where customers can buy. However, the firm adopting the value approach will take extra measures to ensure that the customers are always fully supplied with the product in a convenient way and that customer services at the delivery point are attractive (Goi, 2009).
Overall, the 4Ps approach is more focused on the product than the value approach. In the value approach, focus is given to the customer. As such, the value approach can be said to be more customer-oriented than the 4Ps model. Thus, the value approach has a greater potential of enhancing competitive edge of firms than the 4 Ps approach.
Goi, C. L. (2009). A Review of Marketing Mix: 4Ps or More? International Journal of
Marketing Studies, 1(1), 1-15.
Richard, J. E., Plimmer, G., Fam, K., & Campbell, C. (2015). Publishing success of
marketing academics: antecedents and outcomes. European Journal of Marketing, 49(1/2), 123-145.
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