4 P's
    o Product
    o Price
    o Promotion
    o Place (location)
4 e-P's
of email marketing (added Feb 2007)
    o Permission
    o Privacy
    o Profiling
    o and Personalization.
this page last updated 2013 Mar 13
 
. This page used in the following courses taught by Prof. Richardson
.
MRK 106
CCT 322
.
...
http://people.senecac.on.ca/tim.richardson/MRK106-9th-Edition/Chpt2/sld011.htm Understanding the meaning of the 4P's is just about the most important thing you can accomplish in your entire marketing program. The use of the 4P's is a part of most marketing decisions "on the street". 
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PRODUCT
  • the physical features of the product, or the intangible aspects of the service
  • covers things you do to make the product more attractive to buy
  • branding also comes under the heading of "product when the 4P's are used in marketing
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PLACE
  • decisions about where to sell the product
  • or concerns about where the customers are, and how to get to them
  • also includes the "channel of distribution" - meaning, all the different middlemen you use to get the product out to the customer
  • place in an online context can also mean Domain Name
     witiger.com/ecommerce/domainnamesmktg.htm 
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PROMOTION
  • telling the customer about the product
  • promotion is typically sub-divided into
    • Mass Selling
    • Sales Promotion

    •  
         
        http://www.witiger.com/ecommerce/ketchup-cannibal.jpg stuff you do in the store to get the customer to try the product

        The pic to the left shows typical "end of the aisle" positioning done to cause the customer to make an impulse purchase

        contests, coupons, free samples

    • Personal Selling
      • direct contact person2person with a potential customer
      • sometimes for large industrial sales

      • sometimes for high quality consumer products, like selling a car
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PRICE
  • are you going to sell at a high price and make a lot of profit in the short term
  • are you going to sell at a low price to beat the competition and stay in the long term
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4 P's not 

relevant?
outdated?
 
 

UTM student Karen Y. in March 2013 emailed to say
"I was on twitter and i came across this article regarding how the 4P's are no longer a valid marketing model today. Instead our generation should adapt to 5 news principles"

Karen provided a link to a page on the website of the well known advertising agency Ogilvy.
 https://social.ogilvy.com/kicking-off-sxsw2013-with-don-tapscott-and-the-net-generation-sxswogilvy/ 
On this page Don Tapscott, a Canadian who has lectured and written several well known books on internet trends, presents his opinion under the heading of 
"The Net Generation Changes Marketing"

Tapscott's
5 Principles of Marketing to the Net Generation

  • Collaboration
  • Openess
  • Sharing
  • Interdependence
  • Integrity
Tapscott further argues that
"The 4P's are no longer a valid model"
  • Product evolves to Consumer Experience 
    • consumers want to have fun not just get the product. They want a full experience
  • Place changes to Anyplace
  • Price moves to Discovery Mechanism for Price
  • Promotion is now about Engagement
  • and Tapscott added Brand (previously Brand was considered a sub-set of Product) saying "at the foundation of branch architecture is integrity"
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4 P's not 

relevant?
outdated?
 
 

4 P's not relevant?   WTGR's response

"Karen, first, thanks for the email, it is always interesting when students branch out on their own to challenge traditional theories and principles taught in an academic setting. One thing to keep in mind though, whenever you read something that claims to make an older thing "outdated", is who is the author, and why might they say that?"

Who is Tapscott? ( dontapscott.com )Don Tapscott has been writing about the internet, web marketing and digital "stuff" since the publication of his famous / controversial book "The Digital Economy: Promise and Peril in the Age of Networked Intelligence" in 1997. He had another book in 1999 titled "Growing Up Digital" which was widely quoted and put him into the "limelight" (partly because nobody else was writing about this, and partly cause whet he said was interesting and dealt with upcoming technology issues).

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4 P's not 

relevant?
outdated?
 
 

"The 4P's are no longer a valid model" - WTGR disagrees 
                                                          (WTGR's rebuttal in purple font)

 
  • Product evolves to Consumer Experience
    • yes, consumer experience is important, but the product is still the product, you need a term to describe the physicality of the goods or service and "product" is still a useful term in 2013
    • I think what Don is trying to get people to understand is that there is a difference between the physical aspects of your product, and the emotional circumstances of how people connect with it - which is partly a consequence of some branding and partly a result of effectively "marketing" the FABs of using the product - which is a good thing to understand, but it doesn't mean we throw away the term "product"
      • Features
      • Advantages
      • Benefits
  • Place changes to Anyplace
    • I disagree, look at how Google searches are increasingly focused on "local search", it doesn't matter if you rank globally for "furniture store", you need to rank # 1 for "furniture store toronto" for someone in Toronto who wants to go buy the sofa and stick it in the SUV and drive home
    • 2nd - with the increasing proliferation of GPS, we are close to achieving the Holy Grail of marketing to customers - meaning pitching them info about the product, in proximity to where they are actually located
    • location is becoming more important because it allows us to do more narrow and precise "target market segmentation"
      • instead of advertising about Tim Horton's in general, we can broadcast a message to a Timmies customer who is within 50 metres of a store and say if they come in right now they can get their special beverage at a further 10% discount
    • see  witiger.com/ecommerce/locationdeterminant.htm 
  • Price moves to Discovery Mechanism for Price
    • I think what Tapscott might be referring to here is that the price info you see may depend on where you find it online - if is in eBay it might be lower than on an official vendors site, which may be different than the wholesalers site
  • Promotion is now about Engagement
    • uh, this is not new, in the globally competitive world of the 1980's long before the web became popular in the late 1990's, many many well known brands were "engaging" their customer through techniques such as repeat purchase points plans, clothing with branded logos, etc.
      • examples
        • an "entry level" Harley Davidson motorcycle was a $24 black T-shirt
        • when i travelled on international business I held "Gold cards" from Hilton and Delta hotels which "engaged" me cause I got upgrades and complimentary services
    • the web does indeed make "engagement" easier and someone can quickly "like" a company on Facebook, but for the "engagement" to be meaningful and something that lasts, the relationship has to be something of substance. I don't think clicking to follow someone on Twitter, which is a click of mouse, really means the customer is genuinely interested in following info about the company in detail for a sustained period of time
  • Brand
    • I still say brand belongs under the heading of Product - the consequence of particular branding strategies, tactics and techniques directly influences how we produce the product / service to be consumed
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4 e-P's for
email
marketing
Seneca graduate student Bei J. in the post-diploma program, emailed in early February 2007 to comment on a "new version" of the 4P's

Bei said
Hi, Professor, I found one article talking about email marketing.  Instead of the traditional 4Ps-Product, Place, Promotion, and Price, this article points out the new 4Ps for email marketing, including Permission, Privacy, Profiling, and PersonalizationAs receiving emails becomes a more important thing in people's daily life, we can not ignore the significant impact that email will bring on marketing.  Email is becoming an effective marketing tool in various areas.  Therefore, companies should apply appropriate tactics and rules in marketing through email.  The website were I found this, is:
www.e-bc.ca/pages/resources/email-marketing.php
Thank you., Bei J.

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4 e-P's for
email
marketing
WTGR responds
Thanks Bei, that's a helpful site for sure
www.e-bc.ca/pages/resources/email-marketing.php
 
The 4 e-P's was written by Stefan Eyram who is the Canadian Business Development Manager for ExactTarget  www.exacttarget.com (H.Q. in Indianapolis) and is also working with Connectus in Vancouver  www.connectusdirect.com
 
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Permission Stefan Eyram explains

"Permission is the real key to successful email marketing. If you don’t have explicit permission to send an email to a recipient you are SPAMMING them.."

Eyram suggests that if companies send too much spam, lawmakers will come down hard and make regulations forbidding this, and, or people will get so tired of spam they won't take email seriously anymore .. Eyram calls this "email fatigue"

sdd
Privacy Eyram wisely advises

"In the past, many email marketers have bundled the privacy issue together with permission. While both are related, they are in fact very different. Permission as we have noted is a request to receive personal information and an invitation to market products or services to individual consumers. Privacy on the other hand, is what email marketers do with the personal information once they receive it and how they keep it private from prying eyes. With identity theft increasing and the average person more concerned about privacy issues, those organizations that consistently take the privacy high road will endear themselves to customers."

sd
Profiling Eyram suggests

"Keeping profiles simple is often the best rule of thumb. Essentially, marketers want to know who they are, what they want, how they want to be contacted and how often. It’s also prudent to provide end-users with access to view and freely update their profile. Putting control in the hands of the end-user is far better that having them unsubscribe from your emails because you sent them something they did not want to receive.

The smart marketer uses contests, questionnaires and polls to collect information and then aggregates the data with other sources (e.g. point-of-sale, order history, web logs, email metrics, etc.) to create powerful customer and prospect profiles."

sd
Personalization Eyram cautions

"Personalization doesn’t mean sending the same message to your entire database and changing the opening line with “Dear .” In email marketing there is no “one size fits all.” Email marketing provides you with the capability to ensure that each person gets “personal” treatment from your organization. Experience has shown us that email marketers using personalization tend to have better open and response rates. They also have an easier time keeping the end user’s permission. In the end, the combination of permission, privacy, profiling and personalization will keep end users “hooked” on your company, your products and services, your messages and your future success."

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