The 4 C's versus the 4 P's of Marketing
Jul 23, This new approach of 4C's of marketing shifts the focus from of marketing 4C's asserts a give and take relationship between the seller and the. Oct 4, Encompassing customer, cost, communication and convenience, learn how the 4C Marketing Model is a great option for your small business. Oct 19, Marketing Are Product, Price, Place and Promotion in this marketing formula something from the past? We discuss the 4Cs vs the 4Ps of.
Bob Lauterborn, professor of advertising at the University of North Carolina has tracked the success of new products introduced into the U.
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According to Bob, 80 percent of new products fail each year. With such a high failure rate, Bob notes that something isn't working with our "mindset". He wants to replace the Four P's with his Four C's.
Understanding the 4C’s of Marketing Mix
Consumer wants and needs vs. Products You can't develop products and then try to sell them to a mass market. You have to study consumer wants and needs and then attract consumers one by one with something each one wants. Author of the movie Field of Dreams, J. Cancilla may have exclusive rights to the phrase "build it and they will come". In most cases, you have to find out what people want and then "build" it for them, their way. Cost to satisfy vs.
Price You have to realize that price - measured in dollars - is one part of the cost to satisfy.
If you sell hamburgers, for example, you have to consider the cost of driving to your restaurant, the cost of conscience of eating meat, etc. One of the most difficult places to be in the business world is the retailer selling at the lowest price. If you rely strictly on price to compete you are vulnerable to competition - in the long term.
Convenience to buy vs.
Understanding the 4C's of Marketing Mix
Place You must think of convenience to buy instead of place. You have to know how each subset of the market prefers to buy - on the Internet, from a catalogue, on the phone, using credit cards, etc.
This gives the marketers a good idea of the agencies commitment and understanding. These sessions are designed to test how aligned the agency and marketing team really are. It allows their values, culture, communication styles and more to be uncovered and whether or not they match.
Creative Access This involves all facets of creative access including strategy, innovation, problem solving, and creative thinking. This is the core of what you're trying to achieve in choosing an agency. Experience, capabilities and expertise are all important, but creative access is the heart of the matter and moves the relationship from a simple supplier of services to a relationship based on collaboration. The regular approach of providing the agency with a brief, and then expecting them to come back with an idea that you love, has a certain irony to it.Marketing Minute 078: “The 4 C’s of Marketing vs. The 4 P’s of Marketing” (Marketing Basics)
Because of this, any sort of speculative work whether it be creative work, or media strategy or anything else, is NOT recommended. The only situation where this can be ignored is if you are only buying that particular outcome. The majority of the time, what clients are buying is a relationship that is ongoing. The clients and agencies work together productively and because of this collaboration are able to solve problems.
This is why having an all day workshop works so well, and is highly recommended. Being with the agency all day is the ultimate test on both sides.
You can test them to whatever point you deem necessary. Our feedback from the marketers we have worked with, is that they have been able to get a clear view of the agencies they are assessing, and how well they will work together. Also when you include other key stakeholders, and agency roster partners, it is much simpler to see how they will all fit together with your business and current roster of agencies. These include arrangements such as agency remuneration and contractual arrangements.
The 4Cs of agency relationships
From the Chemistry process the marketers will have a maximum of three agencies which they will commit to taking through the workshops. If you are evaluating the agency, then it is important to review not just the level of remuneration but also the resource utilisation. How efficiently is the agency resource being used against the quantity and complexity of the outputs they are producing? Some of our key points when reviewing and benchmarking agency remuneration are: Agency resource levels against scope of work delivered Agency resource mix by function Agency resource mix within each function Agency resources costs salaries Agency remuneration fundamentals including billable hours, overhead and profit multiples Non-retained rates Production costs on projects Overall agency profitability on the account This process gives us a clear view of how the remuneration model is going to affect the scope of work delivery, the marketing budget, and the agency resources provided.
With this clarity, we can decipher where there is an opportunity for greater efficiencies through process improvements, incentives and bonuses and resource allocations. So there you have it.