marketing pros and cons

In any market driven organization, a client and his needs are regarded as the basicobjectiveor goal of all the organization’s activities. As revealedand established in many research studies, market orientation promotesthe competitive position of the organizations and generatesa major competitive advantage (Rozek, 2014). Marketingtherefore, shouldbe the sole think tank and the leading light of the organization’s strategies. However, in the current world there is a completely different approach when it comes to marketing. More than on policies, marketing centers its activities on strategic and functional business tasks (Rozek, 2014).

Marketing Mix is normally referred as a set of manageable variables that the organization can use to impact the purchaser’s response. This controllable variables refer to the 4 ‘P’s which are: product, price, place (distribution) and promotion (NOS, 2008). Each organization tries to come or build up such a set of 4‘P’s, which basically makethe highest level of customer satisfaction and at the same time meet theorganizationalgoals. Therefore, this mix of 4 ‘P’s is assembled while concentrating mainly on the needs of the target consumers, and it differs from one organization to another dependent upon its accessible resources and marketing goals (NOS, 2008).

According to the American Marketing Association,marketing can be regarded as the activities, a set of institutions, and the practices for creating, communicating, delivering, and exchanging offerings that offer value for consumers, clients, partners, and the society at large(Tanner, 2012). Therefore, value approach generally calls for:

  • Creating
  • Communicating
  • Delivering
  • Exchanging

Compare and contrast a four Ps approach to marketing versus the value approach (creating, communicating, and delivering value)

The main constituents of the 4Ps approach are product, price, place, and promotion. Therefore, it means that the initial step in the marketing strategy is a product.

Product. Firms that emphasize this method try to make a consumer product or service that is thought to be exceptional than that of the competitor’s. The uniqueness or product upgrade is understood to be a competitive advantage. Furthermore, such a product is supposed to be selling itself(Ovod, 2011).

Price. Another crucial feature is price. Critically looking at the 4Ps approach price can also turn out to be a competitive advantage. For example, if the product is not exceptional, a sure pricing strategy, for instance, price decrease, can possibly sell the product(Ovod, 2011).

Place. The next aspect is place. This involves creating or discovering a distribution channel through which a product will be sold. Thus, this step in 4Ps marketing comprises the delivery of products to the points where consumers can purchase it.

Promotion. Basically, this involves informing the consumer on the qualities and benefits of the product so that the likelypurchaser learns about the product, and favors it to those of the competitors, and has achance to purchase it at some place.

Although the 4Ps approach has been functioning for organizations for years, it has become less effective as the market has advanced. This occurred owing to the fact that product, price, place, and promotion does not involve all the activities that are associated to marketing a product. Therefore, a more effective approach was advanced the value approach(Ovod, 2011).

The Value Approach to Marketing

Creating value. The creating aspect of this marketing strategy is to some extent similar to the ‘product’ step of the 4Ps approach, implying that at this phase the product is created.

While in 4Ps where only a product is created, the value approach comprises of creating an offering that provides value to the consumer, which might not be just a product(Ovod, 2011). Such an offering might comprise a product and post-sale service, for example, or some extra advantages that go together with the product. Generally, it can be postulated that the value approach involves selling value of the offering, but not the product itself, and involves much more aspects than just the product.

Communicating value. The next aspect is communicating. This can be compared to promotion in the 4Ps approach, since it involves informing the consumer of the offer. The difference here is the information provided to the consumer(Ovod, 2011). The 4Ps approach basically promotes and markets the product, while the value approach markets the product plus the service, benefits, and the enjoyment that can be expected from the product. Additionally, the value approach includes not only telling the consumers how good the offering is, but also learning from the customers about their favorites and desires(Ovod, 2011).

Delivering value. This might be compared to place in the 4Ps approach. Nevertheless, it is different because, while place necessitates a place where the consumer can buy a product, delivering also comprises making certainthat the consumer will be able to get the most of the product(Ovod, 2011).

In summary, it can be postulated that the 4Ps approach is more centered on product, while the value approach is, on the contrary, centered on theconsumer. It is a more consumer-oriented marketing strategy, which, in some features, is close to one-to-one marketing. Additionally, the value approach is more specific, therefore, helping marketing experts in creating and marketing all the four types of their offerings more resourcefully(Ovod, 2011).

Generally, all parties in a marketing business come withprospectsconcerning how the business relationship will exist. Essentially, this has been known to be a standard problem. This is because every consumer has his or her expectations including paying a reasonable price.Unethical conductsfor example, price wars, selective marketing, and deceiving marketing can negatively influence a firm’s relationships. This is however a non-standard problem.

For any functional company that is applying either of the two approaches, the standard problem can be expected in the daily operations of the company. However, the non-standard problem is rarely seen between companies especially those that are not competing for the same market share.

References:

Rozek, J., &Karlícek, M. (2014). Customer lifetime value as the 21st century marketing strategy approach. Central European Business Review, 3(2), 28-35.

John F. Tanner, Jr. and Mary Anne Raymond (2012). Principles of Marketing: Version 2.0

Ovod, A. (2011).4Ps versus Value Marketing Strategy. Retrieved on 2nd February 2016 fromhttps://suite.io/alla-ovod/50m222h

NOS (2008).Marketing mix. Retrieved on 2nd February 2016 from http://download.nos.org/srsec319new/319EL20.pdf