Given that Product, Price, Promotion and Place forms the marketing mix, realizing the existence of the modern marketing management 4 Ps is also important, viz. People, Process, Programs, and Performance, as mentioned by Kotler. However, many such timely updates gives rise to the alternatives of our conventional
4 Ps. For an instance, consider the following in the B2B reality mentioned in the Jan-Feb '13 issue of HBR magazine.
Product:
Considering a nascent category of 'Diffuser system Car fresheners', Ambi Pur had an early mover advantage. It was one of its own kind without any variants in the Introduction period. New fragrance versions were launched in Growth stage. The Maturity stage saw the product mix out of which the best seller retains in the Decline stage.
Price:
Ambi Pur dealt with huge promotions in the Introduction stage. Hence, initially the products had heavy prices to recover the promotional expenses. The then brand was bullish about Ambi Pur and hence could afford the high prices. As any product enters the Growth stage, prices either fall or remain the same. It is since the sales and profits have begun to take off. Also, the increasing competitors is a factor. Thus, increasing the market share is the aim here whereas defending the market share is an objective in the Maturity stage. Decline stage deals with the pricing that leads to profit. After all its a matter of the existence of the product now, and not just the survival.
Promotion:
Introduction stage of Ambi Pur recalls adopting promotional strategies like vending their starter kits at gas stations, car showrooms, accessory outlets and so on. Thus educating and informing the public created a general awareness about the product. The competitive Growth stage sees promotion focusing on distinctive features, technological advancements and on modern innovative design launches. It becomes necessary in order to do away with the competitors. This takes a gradual backseat as advertising is restricted only for reminder purposes in the Maturity stage, as people are already aware of the product, it has reached the maximum sales, profits and customers and it's time that buyers start looking for alternatives provided by competitors. Lastly, the Decline stage sees absolute no or low promotions- just in case of a particular product that is hopeful of fetching profits. At such times, it is typical for the finance consultants to demand a cut down on the Ad expense in order to compensate for the decreasing or stagnant Top line.
Place:
The accessibility is discussed in the context of Distribution under Place. Introduction phase shows us a limited distributors. Initially, the product is perhaps launched in certain Tier I or II cities only. Hence, the distribution network is amature and not dense. Growth stage needs stronger distribution channels that provides for higher sales as the product penetrates the market further. Likewise, this channel becomes dense in the Maturity stage where the market share needs to be defended from falling apart; unlike in the decline stage where majority of the weaker non-revenue generating products and their channels are withdrawn, retaining only a fewer outlets in number.
4 Ps. For an instance, consider the following in the B2B reality mentioned in the Jan-Feb '13 issue of HBR magazine.
This paradigm shift self explains and justifies today's world of marketing concepts.
But, does the original 4 Ps validate out PLC? Does it encompass all the factors discussed and left out in the previous post? Do they relate to our product in various stages?
Well for this, let us have a look at the 4Ps vs the PLC stages shown below:
Considering a nascent category of 'Diffuser system Car fresheners', Ambi Pur had an early mover advantage. It was one of its own kind without any variants in the Introduction period. New fragrance versions were launched in Growth stage. The Maturity stage saw the product mix out of which the best seller retains in the Decline stage.
Price:
Ambi Pur dealt with huge promotions in the Introduction stage. Hence, initially the products had heavy prices to recover the promotional expenses. The then brand was bullish about Ambi Pur and hence could afford the high prices. As any product enters the Growth stage, prices either fall or remain the same. It is since the sales and profits have begun to take off. Also, the increasing competitors is a factor. Thus, increasing the market share is the aim here whereas defending the market share is an objective in the Maturity stage. Decline stage deals with the pricing that leads to profit. After all its a matter of the existence of the product now, and not just the survival.
Promotion:
Introduction stage of Ambi Pur recalls adopting promotional strategies like vending their starter kits at gas stations, car showrooms, accessory outlets and so on. Thus educating and informing the public created a general awareness about the product. The competitive Growth stage sees promotion focusing on distinctive features, technological advancements and on modern innovative design launches. It becomes necessary in order to do away with the competitors. This takes a gradual backseat as advertising is restricted only for reminder purposes in the Maturity stage, as people are already aware of the product, it has reached the maximum sales, profits and customers and it's time that buyers start looking for alternatives provided by competitors. Lastly, the Decline stage sees absolute no or low promotions- just in case of a particular product that is hopeful of fetching profits. At such times, it is typical for the finance consultants to demand a cut down on the Ad expense in order to compensate for the decreasing or stagnant Top line.
Place:
The accessibility is discussed in the context of Distribution under Place. Introduction phase shows us a limited distributors. Initially, the product is perhaps launched in certain Tier I or II cities only. Hence, the distribution network is amature and not dense. Growth stage needs stronger distribution channels that provides for higher sales as the product penetrates the market further. Likewise, this channel becomes dense in the Maturity stage where the market share needs to be defended from falling apart; unlike in the decline stage where majority of the weaker non-revenue generating products and their channels are withdrawn, retaining only a fewer outlets in number.
Nice article on 4 Ps of Marketing.
ReplyDelete