The 4Ps and the value method of marketing are similar because they share a common goal. The 4P method was formulated in the 1950s which comprises of the product, price, place along with the promotion. It is viewed as an ancient technique of marketing. The four Ps are nouns, but the components of the value method are verbs. The value marketing technique is an advanced form of the 4Ps that include creating, communicating, and delivering value. The 4P practice focuses on the items, but the value technique deals with giving quality to the customers (Kotler and Keller, 2012).
The 4P Method of Marketing
The 4Ps are also called marketing mix which indicates that they are combined with the marketing plan. The components include:
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Product. Following the 4Ps method, firms establish the preferences of the customer. The companies design products that meet the demands of their target customers. The goods must be of high-quality to counter the competition of substitute firms. Successful corporations incorporate innovations to improve the value of the products (Perreault, Cannon & McCarthy, 2017) .
Price. Price can be a competitive advantage. For instance, in case an item has no unique features then the pricing strategy will play a part in its success. A good pricing strategy contributes to increasing the product sales (Perreault, Cannon & McCarthy, 2017) .
Place. After designing the product and its pricing strategy, it is essential to take into account its placement. Placement refers to determining the proper distribution channels in which the products will be sold to potential customers and clients (Perreault, Cannon & McCarthy, 2017) .
Promotion. It involves the companies communicating to the customers through various means including media and phone calls. The purpose of promotion is to give the customers information on the qualities and benefits of the products. The potential clients can purchase the items after they get information on them (Perreault, Cannon & McCarthy, 2017) .
The Value Method of Marketing
The components of the value approach include:
Creating value. This step is similar to the 4P because the products are designed to meet the needs of the clients. In the 4P method, the aim is to create a product that brings satisfaction to the customers. In the value technique of marketing, the focus in on designing an offering that is valuable to the clients. The value approach involves selling, giving value, and other advantages that are associated with the item (Lopez, 2014).
Communicating value. This step is similar to the promotion of the 4P method of marketing. Advertising deals with giving information to the customer or client about the offer. The difference between communicating value and promotion is the content of the data to the customers. The 4P method promotes the products through advertising, but in the value approach, the quality of the item is improved among the clients through product plus facilities, benefits of the goods, and after-sales services (Lopez, 2014).
Delivering value. It can be compared to the place of the 4P method. Place involves having a location in which clients can access and purchase the product. Delivering focuses on making sure that the client will receive the offering which comprises of value, item along with advantages (Lopez, 2014).
The Similarities and Differences between Two Companies Applying the 4P Method and Value Approach to Marketing
The 4P and value methods will be concerned with the creation of products and distribution to the potential and existing clients. A company that implements the 4P technique will focus on producing items to meet the preferences and needs of the consumers. Secondly, the firm will formulate a proper pricing strategy and place the products in an appropriate medium. Lastly, the firm will promote their goods through advertising. The consumers will get the products concerning their needs (Kotler & Keller, 2012).
A firm that applies the value method of marketing attains much attention from the customers because they respond to all the needs of the customers. The value method provides high-quality products that are accompanied by advantages. The company will provide after sales facilities which will attract more customers. The value approach will be helpful in attracting and retaining the company’s customers (Kotler & Keller, 2012).
In conclusion, the value approach has more benefits than the 4P method. The value approach will assist in establishing a company’s brand, customer retention, and increasing clients. Although it can be expensive to implement, companies should use it.
References
Kotler, P., & Keller, K.L. (2012). Marketing Management . Upper Saddle River, N.J.: Prentice Hall.
Lopez, S. (2014). Value-based marketing strategy: Pricing and costs for relationship marketing . Wilmington, Del: Vernon Press.
Perreault, W. D., Cannon, J. P., & McCarthy, E. J. (2017). Essentials of marketing: A marketing strategy planning approach .
