4p's in Marketing

1193 WordsJan 15, 20125 Pages
Question 2. Define each of the four Ps. What insight might a firm gain by considering the four Cs rather than the four Ps? Answer Price is one of the elements in the marketing mix and also an important aspect for the seller and the buyers. For consumer, price is the value whereby they have to pay with cash in order to exchange products and services. Meanwhile for seller, price is the source of the income gained through sales. The price is shown in everywhere, for instance taxi fare, premium insurance, parking fine, rent for apartment, tuition fee and income tax. Regardless how is the price shown, it is the exchange value for the consumer and transaction for the business. Consumers are able to make decision for determining how…show more content…
When they define marketing mix cost, they tune into the customer dilemma of deciding how to spend limited money to satisfy unlimited wants. The motivation in going to market should not be to maximize the gain but to maximize customer value. Therefore, they should ask how they can provide more for the same cost to the customer instead of asking to make more profit from a product. Next, they have to consider the communication instead of promotion. Promotion is manipulative because it can be done by seller, but communication requires a give and take between the buyer and seller. A firm must be creative in order to make any advertising "interactive". The most important thing is they need to listen to their customers. Promotion hearkens back to the day of mass marketing which does not work anymore. Just like a firm cannot simply build a “good product” and expect people to buy it, so customers no longer believe everything they say at face value. Instead of virtuous pronouncement about how good the product or service is, customers today seek to be engaged and have meaningful interactions with a firm. They must therefore strive for two-way communication and building relationships. In addition, by considering product rather than customer, a product is something a firm makes which people come and buy. However, today, a firm can no longer succeed by making what they want and must instead find out what customers want. Focusing on customer value allows them to reset their
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