SUMMARIZE THE ESTABLISHMENT OF 4P MODEL

The first author that used marketing mix is McCarthy (1960), which refers to it, as "4P's"
(product, price, promotion and place) and is understood as a mean of translating marketing
planning into practice (Bennet, 1997). Since it's presenting in 1960, McCarthy used the
marketing mix in order to discuss marketing manager's framework - "concentric circles with
the customer surrounded first by the 4Ps and then by the environmental forces that affect
marketing strategy development"
(Anderson & Taylor, 1995).

Throughout the years, many questions were raised regarding the validity of the marketing mix
in the 21st century. A study conducted by Rafiq and Ahmed (1995) implied on the high level
of dissatisfaction with the 4Ps paradigm. Different authors launched attacks on this model
because of its lack of strategic elements and internal orientation (Ohmae, 1982, Robins,
1999), which led to developing alternative frameworks such as or Boom and Bitners (1981)
7P's framework, more suitable for the service marketing area and Bruner's 4C's (1988)concept, channels, costs and communication.

One of the most influential critiques of the marketing mix is given by Lauterborn (1990), who
claims that the elements of the marketing mix should be also seen from consumer's point of
view. This alludes that more emphasis should be put on customer wants and concerns
(Dennis, Fenech & Merrilees, 2005). Therefore, Lauterborn came up with the "Four C's" customer value, cost, convenience and communication, a model that is equivalent to the
traditional 4Ps, but viewed from customer perspective

Everyone who has studied marketing in the last 50 years has been introduced to the 4Ps. It
was E. Jerome McCarthy who originally developed the mnemonic, the 4Ps of marketing,
which serves as a neat and memorable classification system of the various elements of
marketing.
(http://www.brandba.se/blog/transforming-4p-into-4c-online)

In order to cope with increasing competition, companies need to prioritize innovation and
customer satisfaction. Otherwise producing alone, and even producing at the right time and
right place wont be enough for surviving. In such a situation that consumers have that much
alternatives and that they have almost equal as much right as producers have in order to speak
on production processes, there is no choice but putting consumers into the center.
4P which is the traditional production oriented marketing and which is the first thing comes to
mind while speaking about marketing mix is giving its place to 4C which is consumer
oriented marketing formula.
Consumers intend to obtain surplus or solution for a specific problem from the product they
purchase.
In the direction of this intention of consumers, marketers firstly put forward the benefits or
values of their product, even before creation of a product.

In this perspective, businesses should produce qualified and cheap outputs, and they should
remove all unnecessary additions.
Product becomes Customer needs and wants
Price becomes Cost to the user
Place becomes Convenience
Promotion becomes Communication
They provide useful reminders for example that you need to bear in mind the convenience of
the client when deciding where to offer a service.
(http://olivinexpresssblog.com/2013/10/24/4ps-versus-the-4cs-of-marketing/)
To apply the 4Cs approach to marketing you must consider the impact of the uncontrollable
elements on your marketing mix. The 4Cs explicitly require you to think like a customer.
However, it does not require abandoning your core marketing concepts. The main idea of the mix
4C is to start, while developing marketing strategies, to think first about the C from a customer perspective and
after that think about P from the perspectvie of the enterprise.Marketing mix 4C is close to the concept of
the services (which emphasize the customer perspective) and to the principles of CRM.

4 PS FOCUS ON A PARTICULAR

4 CS FOCUS ON THE CUSTOMERS

TARGET MARKET
Product: The right product to satisfy the needs

Consumer wants and needs (vs. Products):

of your target customer. Individual goods,

You have to study consumer wants and needs

product lines, or services. Includes features,

and then attract consumers one by one with

accessories, installation, instructions, service,

something each one wants. Define it in terms

warranty, packaging, and brand names.

of what it does for your customer (custom

solution not a mass market). How does it help
your customer to achieve, avoid or preserve
something? You must be clear about the
benefit you offer and how the customers life
or work will be improved if he or she buys

Price: The right product offered at the right

what you sell.

Cost to satisfy (vs. Price): reflecting the

price. Setting a price that serves the customer

reality of the total cost of ownership. Many

well and maximizes profits to the company.

factors affect cost, including but not limited to

Price flexibility, level pricing, introductory

the customers cost to change or implement the

pricing, discounts, allowances, geographic

new product or service and the customers cost

terms.

for not selecting a competitors capability. You

have to realize that price measured in
dollars is one part of the cost to satisfy. If
you sell hamburgers, for example, you have to
consider the cost of driving to your restaurant,

Promotion: Informing potential customers of

the cost of conscience of eating meat, etc.

Communication (vs. Promotion): You have to

the availability of the product, its price and its

consider the communication instead of

place. Communicating with the customer.

promotion. Promotion is manipulative (ouch!)

Personal selling, mass selling, sales

and represents a message only from the seller.

promotion, sales personnel, advertising, viral

Communication requires a give and take

advertising, media selection, copywriting.

between the buyer and seller (thats nicer). Be

creative and you can make any advertising
interactive. Use phone numbers, your web
site address, etc. to communicate, help and
listen to your customers. Developing a brand
takes into account these considerations.

Developing a brand is developing a promise.

When you take into consideration the 4Cs
noted above you begin the process of
developing a brand!

Place (Distribution): The right product at the

Convenience to buy (vs. Place): You must

right price available in the right place to be

think of convenience to buy instead of place.

bought by customers. Getting the product to

Convenience takes into account the ease to

the customer. Channels, distribution systems,

buy a product, find a product, find

middlemen, warehousing, transportation,

information about a product, and several other

fulfilment, and shipping.

considerations. You have to know how each

subset of the market prefers to buy on the
internet, from a catalogue, on the phone, using

credit cards, etc.

Kaynak: Lanning, M. ve Michaels, E., (2000), The McKinsey Quarterly:
Delivering Value to Customer:8den aktaran Uzunolu E. (2007)
As a result, in structuring of companies, changes are observed in the direction of marketing.
From now on, business organizations are affected by customers profile, expectations and
needs. Classic management pyramid rolled completely over with the prominence of consumer
factor. In ever stage, consumer oriented structuring is seen.
It is not enough, for a company, to produce a rational product that fits all needs of consumers.
This obtained avlues is required to be delivered and explained to the consumers. On the other
hand, communication investment is a must in order to explain why this product is superior
than others,and to explain its functional and sentimental features. (Doyle, 2003: 519).
Advancing technology and proliferation of internet makes prdocution easier and with higher
quality, and at the same time make it easier to reach all the markets in world for producers.
There, now, exists a global market.

Consumers are now in the condition that they can reach any product produced in any place.
Because consumers knowledge level has increased, their expectations, wants and needs
changed. The level of satisfaction has increased.
Todays companies have to put consumer into the focus point of their business in order to
satisfy the consumers and to survive through profitting. Nevertheless, it has become an
obligation for all companies and thier emplees to develop products in accordance with
consumers wants and needs. For companies, its needed to act in the light of such
informations.
1- Anderson, L. & Taylor, R. (1995). McCarthy's 4Ps: Timeworn or Time-tested?, Journal of
Marketing Theory and Practice, vol. 3, no. 3, pp. 1-9.

2345-

Kaynak: Lanning, M. ve Michaels, E., (2000), The McKinsey Quarterly:

Delivering Value to Customer:8den aktaran Uzunolu E. (2007)
http://www.brandba.se/blog/transforming-4p-into-4c-online
http://olivinexpresssblog.com/2013/10/24/4ps-versus-the-4cs-of-marketing/