Updated: Feb 4, 2022
Since the invention of the Marketing Mix in 1960 by Jerome McCarthy, the marketing mix framework or well known by the Four Ps has been one of the most enduring and widespread frameworks in marketing. With the new world of marketing of today characterized by a fast changing environment and digital transformation, the Four Ps of Marketing: Product, Place, Price and Promotion has been changed by the Four Es: from Product to Experience from Place to Everyplace from Price to Exchange from Promotion to Evangelism.
Now, this framework is beginning to show its limitation, as successful businesses need to change their focus from sales alone to the customer’s needs and wants if they want to create a competitive advantage by making customers experience a connection to them and become brand advocates.
From Product to Experience
When buying a product, today’s consumer takes into consideration many factors to decide to purchase it or not. It is no more about the product itself rather than a whole experience. When buying a coffee, customer considers the service, the design of the cafe, the comfortability of seating, aroma, and even the smile of the staff. These are all experiences, so we need to look deeper into the customer's minds and present our product for their best experience. Companies shifting from the 4Ps to the 4Es are the ones that will maintain or develop a competitive edge.
From Place to Everyplace
With the advancement in technology, customers want to find the product everywhere and should be able to buy it in every place they want with the favorite option of even online shopping. This is challenging for companies, as they have to develop their commercialization capabilities and adjust their supply chain.
From Price to Exchange
Most companies try to keep costs down to keep prices competitive. However, today they need to be more aware of the value of their products in exchange for the price they want to charge. When loyal customers appreciate the value of the product given, they are ready to pay a premium price.
From Promotion to Evangelism
Brand Evangelist is a person who believes in your product and aggressively promotes it to others. When companies’ customers think that their products are the best, even though the price is high, they will engage with them to promote the products.
This change in the marketing mix will not be without challenges: First, the technology challenge with the use on the right technology (AI, Deep Learning, etc.) and organizing the right connections platforms between customers and the organization. Second, the organization challenge with adapting roles, objectives and communication channels to align all resources towards a seamless experience and customer organization, and finally, the culture challenge where companies need to align its employees with brands values, content, and promise.
In this digital era, firms need to remember that business happens between people, not computers! It is time for brands to focus on the 4Es to become more people-centric and deliver the brand experience that their customers deserve.