When comparing and contrasting a four P’s approach to marketing versus the value approach. Both approaches contain their own components that define marketing, however the four P’s approach is known as the traditional way of viewing the components of marketing and the value approach is a newer revised approach. The four P’s of marketing was introduced in the 1950s, and were known as the marketing mix, meaning a mixture of; product, promotion, place, and price would make up a marketing plan (Tanner & Raymond, 2010). The reason it is believed to be coming out dated is because our society has changed so much since the 1950s. Back then manufacturing was more dominant than it is today. We still manufacture a large amount of goods, but with the creation of the internet the United States is becoming more of a services industry.
I believe the internet can be credited with the shift from the four P’s to a value approach because of the tremendous amount of information at every ones fingertips. The majority of people today use the internet as a very effective tool to research any new product they might be in the market to purchase. By researching these items on the internet the consumer not only educates themselves about the product, but can also visit competitor’s websites to ensure they are receiving the best price, quality, and service for that particular item. The components that define a value approach consist of; creating, communicating, delivering, and exchanging. Although the structures of the four P’s and the value approach are similar, their description is not. The value approach is clearly geared towards putting the consumer first and providing the customer with the best possible product from quality and service to price. One way companies can improve upon their service is to reduce the amount of hassle involved with most purchases.
The value approach discusses hassle as the amount of time the consumer must invest in order to acquire their goods and services. I believe this is a very important part of the value approach and the companies who acknowledge this and create ways to minimize hassle to the consumer will have a huge advantage over their competitors. It seems people are so busy today and have very little time to relax, that with what little free time people do have the last thing they want is to be wasting it by being hassled over purchasing goods and services. When comparing the four P’s promotion to the value approaches communicating there seems to be a significant difference here. Promotion is all about a company being successful at promoting their new product with only one goal in mind, to sell their product.
The communicating component of the value approach includes interaction with the consumer to learn from the customer what the company can do to make their product better for them. In other words companies want feedback from their customers. There really is not much difference between the two when it comes to delivering. The only thing I could point out here is that the traditional four P’s approach would deliver the products to their local store and the customer would then be required to travel to that store to pick up the merchandise. Delivering for the value approach could be viewed as an online purchase where the company will ship the product right to the customers home and most of the time there is no cost to the consumer for the shipping, it is included free of charge. The final comparison between the four P’s approach and the value approach is exchanging and price. The four P’s component is price; meaning the monetary amount charged for the product.
Basically what this means is once you purchase the product it is yours and that is it. The value approach component is called exchange; meaning a trading value for those offerings. I believe this definition has a dual meaning. The exchange can be just a simple transaction such as cash, check, or credit card to make the purchase, but it can also mean that if the customer is not 100 percent satisfied with the product they have the option of bringing or sending the product back for a full refund or exchange for a different product. Based on my understanding and comparison between the four P’s approach and the value approach, the four P’s approach to marketing is often criticized for its internal orientation and lack of personalization.
Researchers also share the view that modern consumers are; demanding, individualistic, involved, independent, and as I have been saying throughout this paper much better informed, thanks to the internet (Constantinides, 2006, p. 411-413). The value approach seems more consumer friendly to me. I believe as service industries continue to increase in numbers the value approach will also increase in popularity. Businesses acknowledge the fact that the customer will research their business before purchasing their goods and or services and because the businesses understand this they are actively seeking feedback from their customers to ensure they are delivering the best goods and services they possibly can.
Constantinides, E. E. (2006). The Marketing Mix Revisited: Towards the 21st Century Marketing. Journal Of Marketing Management, 22(3/4), 407-438. Tanner, J., & Raymond, M. Principles of marketing v2.0. Flatworld Knowledge. Retrieved fromhttp://catalog.flatworldknowledge.com/bookhub/reader/5229