August 30, 2012 by entrepreneurapproach
At the beginning of my degree, I was taught about how important the 4 P’s (Price, Placement, Promotion and product) were to the marketing mix. They are definitely essential in creating an atmosphere where your product is in its most profitable state. They are a basic set of attributes that need careful attention when selling your product. But are they really still an important tool?
A lot of people suggest that they are not so important as we once thought, not in todays modern society anyways.
Why is this?
Because of the changing dynamics of today’s consumers, We as people look for the difference in things, especially when it comes to what we buy. We notice what stands out, what is unique and what is different. This is hard for marketers to adapt to, as the amount of products and competition in todays market place makes it difficult to stand out amongst others.
It is suggested that we are exposed to around 3500 marketing advertisements per day. Thats a lot of exposure from adverts, so its no wonder that it is difficult to stand out, not to mention the changing fundamentals of a market place. It has gone from physical communication and exchange to electronic in the space of a decade.
So how are marketers able to adapt to this new change in society?
Well that has to do with adapting the marketing mix basics of the 4 P’s. When we see a change in the market place, we need to react quickly and efficiently in the most appropriate way possible. The change for the 4 P’s is into the 4 E’s.
The change is seen like this:
Product = Experience
Price = Exchange
Promotion = Evangelism
Placement = Everywhere
Lets take a quick look at each of the 4 E’s:
Refers to the product as an overall experience. Consumers will become more engaged with the product, the brand and the company if their is an experience that they encounter when making purchasing decisions. This consumer involvement is essential in capturing their attention and changing their purchase decision process to bypass alternatives. If a consumer has a decision between a product, and a product with an experience, majority of the time they will choose the experience. Experience adds value as well, meaning greater ROI for you.
E.g. nike provides an experience with their products, such as monitoring the distances you run, you buy the product, but you get support and advice to help you after you have made the purchase. Post purchase support is a part of experience in a very important way. It reinforces the brand image and will support future purchases.
Basics of exchange is money for a product. But you can offer more to your consumer to gain more in return. The most valuable asset a consumer can give is their time, their attention and their permission. But why isn’t money the most important you ask? this is because its all fair and all to make a sale, but how many times can you make that sale? The more people purchase the more profit you gain. and the more people give you their time, their attention and their permission, the more they are willing to exchange in terms of their money for your products.
Exchange is about finding ways to offer more to your consumer. Its about offering that extra service to gain that extra ROI.
E.g. you prove fair trade items. You offer an item for monetary exchange, but you also offer the satisfaction to the consumer that they are buying fair trade items, so they know they are participating in an ethically clean trade.
Promoting a product is a simple from of marketing. you need a way to get your product noticed at promotion techniques are the way to do it. But to stand out in the crowd, you need to immerse the consumer in your brand, so that they can feel the passion and drive that the brand portrays of your product.
Its not just about telling someone you have a product to fix a need. its about engaging them in a discussion about your product and others so that they learn and grow as a consumer. Its about creating that lasting relationship and leaving a good impression with current and potential customers.
E.g. promoting your product in an interactive way, such as running a competition to win prizes by liking a product picture on your Facebook page. Anyway that will engage a consumer into your ‘brand experience’ is evangelism.
I think this one explains it self. Your brand needs to be everywhere. it needs to be seen, especially in the vast scope of the online experience. There are so many ways to be noticed and you need to take advantage of as many as you can. Try new channels of getting to the consumer, and don’t be afraid to take that leap. the more you are involved in different ways with your consumer the better.
E.g. escape from the original TV and print scenarios. venture out into the online world with things like social media, blogs and vlogs.
I hope this has given you an insight into the ever changing global markets from a marketing point of view. Still begin with the basics of the marketing mix using the 4 P’s but learn to adapt some of them where appropriate into the 4 E’s.
Thanks for Reading!