In 1960, Xerox introduced the first photocopier, the minimum wage was $1, cassettes were about to be invented, news was delivered by hand, and cell phones were still a thing of the past.
It was also the year that E. Jerome McCarthy introduced the 4 P's: price, product, point of sale and promotion, in his book Basic Marketing: A Managerial Approach. This text has been taught in college marketing courses ever since, leading to the global acceptance of the 4 P's as the foundation of marketing fundamentals.
Considering that cassettes and landlines are a thing of the past, it's not hard to see that it's time for this marketing paradigm to be updated.
marketing
The 4 P's of marketing
Product: This refers to the tangible good or intangible service that is being sold to consumers. Marketers must have a solid understanding of the product's value, advantages, and disadvantages. What makes your product unique? Can you find it anywhere? How will you stand out from the competition?
Price: Considered the number one selling architecture email lists point, price impacts everything from profit margins to perception, and is particularly important if you're entering a saturated market, which most are.
Point of sale: The physical or digital location where your product can be purchased.
Promotion: The way you spread information about your product.
In 2009, Ogilvy & Mather CEO and leader Brian Fetherstonhaugh proposed a new formula that replaced the 4 P's with the 4 E's: experience, evangelism or engagement , exchange and every place . This repositioned the foundations of marketing and focused them on offering a value proposition to consumers.
nikita kachanovsky bLY5JqP Ldw unsplash
The 4 E's of marketing
Experience: This is the new product. It is no longer enough to simply satisfy the need with the product itself. Today, the consumer wants to buy an experience, and every moment they spend with your brand contributes to their ultimate satisfaction. This is especially important with online customers and SaaS companies, whose interactions and customer service are the foundation of the product itself.
Price or exchange : Price has been replaced by exchange . There are so many things offered for free these days that brands can no longer rely on price alone. Price today represents an exchange in value, and value includes the entire consumer journey, including before the moment of purchase.
Plaza or Every Place : Thanks to the most transformative invention of our time, the point of sale exists everywhere. We live in a world where everything is at our fingertips, almost everything can be obtained in the palm of our hand and can be delivered to our doorstep in a matter of hours. Brands must be found wherever their customers are, regardless of whether this is in a physical store or online via your website, social media or other channels.
Evangelism: This is what replaces promotion today. Depending on the number of followers, any of your customers has the ability and power to reach the masses. Social media has given word-of-mouth marketing unlimited potential. Marketers must harness the power of the consumer and inspire them to be ambassadors for their brand.
The silver lining? If marketers deliver a valuable experience with meaningful exchange and meet new customers where they are, giving them a megaphone is a good thing. Transparency is welcomed by those who have nothing to hide. The future of marketing can be summed up with an age-old mantra: the customer is king. And if customer-generated content is king, and you execute the 4 E's correctly, you will reign supreme.