Question

What are the “Four Ps” that comprise the marketing mix? What are the “Four Cs,” and what is the rationale behind the “Four Cs” as a response to the “Four Ps?”

1. Identify and briefly describe the "Four Ps."

2. Identify and briefly describe the "Four Cs."

3. Why do the "Four Cs" matter?

Answer 1

Four Ps

Following are the four Ps of marketing mix:

1. Product
2. Price
3. Place
4. Promotion

Four Cs

Following are the four Cs of marketing mix:

1. Customer/ Customer Value
2. Cost
3. Convenience
4. Communication

Rationale behind the “Four Cs” as a response to the “Four Ps"

Four Cs is customer oriented approach whereas Four Ps is company oriented approach. Four Cs approach put customer's interest ahead of marketer's interest and thus able to attract and retain more customers via this approach. This approach provides an advantage over Four Ps since products are produced after considering customers need and thus significantly reducing chances of product failure. Four Cs approach provides competitive advantage to the company over Four Ps approach.

1. Following are the four Ps of marketing mix:

1. Product: Product refers to the finished goods produced by the company to fulfill the needs and satisfy the customers. These needs are either identified or created by the company.
2. Price: Price is the amount customer needs to pay to buy the product. Price is set by the company keeping in mind various factors such cost of manufacturing, inventory cost, logistics cost, brand endorsement cost etc.
3. Place: Place is concerned with the availability of the product in the present and potential market. It can be anywhere from availability of the product in retail shops, company outlets or online depending upon the buying behaviour and habits of the customers.
4. Promotion: Promotion means representing your product in the best possible way. Promotion includes advertisements, seminars, events, sponsorships etc. Promotion uses various media to disseminate information and spread awareness about the product of the company, its price as well as its availability.

2. Following are the four Cs of marketing mix:

1. Customer/ Customer Value: Customer or customer value refers to the wants and needs of the customer. It is about filling the gap between the need of the customer and product available in market to satisfy that need. Thus it focus on needs and not products. Products are produced in order to fulfill these needs which will benefit customer and provide value to customer.
2. Cost: Cost refers to the amount spend in order to acquire and install product in order to get benefited from the product. It includes price of the product, price of transportation to acquire product, installation price etc.
3. Convenience: Convenience as name suggests refers to the ease in acquiring product. It can be close proximity of product availability to the customer location or easy availability of the product in the market.
4. Communication: Communication refers to the interaction between customer and the company regarding product, its value or price, complaint or feedback of the specific product. Social media and electronic media are very effective in establishing communication.

3. Why do the "Four Cs" matter

"Four Cs" matter because:

• It focus on needs of customer and then developing product leading to easy creation of market for the product as customers are already looking for such kind of products.
• It provides strong base to set the prices for the product since this approach considers cost of acquiring goods as well.
• This approach establishes sound interaction channels. Thus provides more accurate feedbacks, customer buying trends and habits which helps in formulation of effective strategies.
• This approach helps in making customers loyal to the brand since it prioritizes the customers interests over company's interests.