The Marketing Mix Revisited: Towards the 21st Century Marketing
Constantinides describes the concept of the 4P’s of marketing mix framework, product, price, promotion, and place, which dates back to the 1960s and implores organizations to emphasize the actual merchandise or products they are selling. Businesses that utilize the 4P’s of marketing in meeting organizational goals focus on selling their goods or services as quickly as possible (Constantinides, 2006). In doing so, organizations can differentiate themselves from others within their industry through better products, more competitive prices, or more preferred locations. Despite the benefits of the 4P’s approach, several drawbacks do exist including the potential to decrease the value of the product or services being offered. Any detriments to the value of a product or service can create distrust between customers and brands, which can compromise any loyalty established by the organization. Constantinides goes on to highlight several weaknesses that exist with the 4P’s and explains how technology can be used within marketing, both for the business and its customers. With customers able to research and find the best price for the goods or services they desire; they are less likely to respond to traditional marketing tactics. On the contrary, more technologically advanced forms of marketing may limit those not as familiar with more advanced technologies. The major detriments of the 4P’s include a lack of human influence, absence of tactical variables, invasive posture, and lack of human interaction. The author suggests potential alternatives to the 4P’s which include an alternative 4P’s of performance, penalty, perceptions, and process, and the 5V’s that include value, viability,
variety, volume, and virtue. Constantinides concludes by offering additional areas for research, specifically how online marketers utilized the Mix during the dot com boom of the 90s and any potential correlation between the 4P’s and organizations that are now obsolete.
The Elements of Value
Many businesses emphasize the significance of customer value, as it plays a crucial role in increasing customer loyalty and the overall success of an organization. Almquist et al. highlight 30 different elements of values for organizations, which are broken down into four main categories: functional, emotional, life-changing, and social impact. Within each of the categories exist various values that can be met by products and services organizations offer, with the authors noting the higher the value is the greater potential for customer loyalty and revenue growth (Almquist et al., 2016). Each value has its ranking, with the higher ranking equalling more importance to customers. Of the four categories, functional and emotional carry more value
than life-changing and social impact and therefore hold higher significance amongst customers. As such, it becomes imperative that organizations understand the established values within their respective industries. When done successfully, an organization can enhance its brand, attract new
clients, and increase its position within its industry (Almquist et al., 2016). Almquist et al. also equate these values to Maslow’s hierarchy of needs which include self-actualization, self-esteem,
devotion and inclusion, security, and cognitive needs, and highlight how well-designed online businesses are more attractive for customers given their convenience. The authors then offer several methods for organizations to better understand customer values, such as new product development and customer segmentation.
The CEO of Levi Strauss on leading an iconic brand back to growth
