Thursday, January 7, 2010

Replacing the 4 Ps of Marketing with the 5 Cs

One may question the four or five Ps of the marketing mix in past learning. You may ask yourself where the customer is in this marketing mix of old. The four Cs which have replaced and are above pictured in the MBER (Mutually Beneficial Exchange Relationship Model)show the relationship between producer and consumer. Consumer needs replaces product, because in the end it is the consumer that purchases the product to satisfy their need. By stating product we overlook what marketing is really about: the customer. Secondly, it should be intuitively obvious why we replace price with cost. We see price as what someone pays for a product, but cost becomes a more encompassing word, for there are other costs to consider beside monetary ones, i.e. opportunity costs to both the producer and consumer. Moving down the list of Cs, we axe the rather inferior P word, placement, and nominate convenience to take its place. I can only look at the computer I am typing on now and see a simple justification for why convenience is a far more appropriate word compared to old fashioned: placement. The day is rapidly approaching where a place will no longer be needed to buy a product. The internet is a huge convenience tool for any customer and gives many more options to fulfill their insatiable needs. Buying such and such at a physical location is becoming more and more a thing of the past. Finally, in our endeavor to explain why the Cs are superior to the Ps of the marketing mix, we present communication. The promotions of the days of yore show only a one way road of advertising to customers. However, in this there is lacking feedback from the consumer and two way communication is neglected. For producers to better satisfy the needs of the consumer, it is of utmost importance to have a meaningful two-way relationship with one another. Information interaction between these two parties will better help contribute to the end goal of establishing competitive advantages. Consumers are supplied with products and the producers establish a competitive advantage and this cycle continues. The true end goal of LOVE is accomplished.
This modified MBER model shows the producers producing a product on the left to meet the consumer need of the customer on the right. This is the customer’s benefit. But, when societal marketing is implemented, products are made for two-fold reasons. Not only are the customers important here, but the long term benefits to society as a whole and individuals are taken into account. This includes reusable, recyclable, and environmentally friendly products. This further helps the producer establish a competitive advantage through differentiation and shows the consumer consideration and care in the fulfillment of satisfying needs. This, my reader, is the new marketing mix of the MBER model and is a cycle that needs to be more realized by companies and organizations today.

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