New 4Ps of marketing in Web 2.0 era
Posted by iMark | Under Internet Marketing - An Overview Saturday Mar 15, 2008Marketing is often characterized by 4 Ps concepts namely:
Product: This aspect deals with the specifications and features of the product and these satisfy the needs and wants of the targeted customers.
Price: As the name implies, it stresses upon the right price of the product so that the customer get value for money.
Place: It is also known by distribution. Basically it entails how a product gets to customers. What are the points from where a customer can pick up the product?
Promotion: This concept comprises advertising, branding and selling of the products.
The advent of Web 2.0 and e-commerce has put the whole picture into different perspective. Today marketers have to deal with new market forces which simply did not exist previously. Therefore to cope up with the new trends, 4Ps model has also undergone a change. New 4Ps model was devised by Idris Mootee in 2001 to supplement traditional marketing 4Ps.
Personalization: It is said that the companies should always strive for mass customization to gain more profits. With internet, it has become a reality i.e. customization of products and services to customer’s needs. Famous examples are Amazon and Dell which not only altered the traditional distribution channel (place) but set the benchmark for others to follow.
Participation: Any company exists to fill certain gaps in the value chain by satisfying some or the other need of the customer. Therefore it becomes imperative that the customers decide what a brand should stand for, what would be the product direction. Essentially this concept advocates democratization of information.
Peer-to-Peer: As the name suggests, it refers to customer networks and communities where the brand is being talked about. Brand engagement happens within the conversations among the users. A case in point is etsy.com where peer-to-peer communications has led to the vast growth of this virtual market.
Predictive Modeling: This refers to intelligent neural network algorithms which are deployed to solve marketing problems.
All these changes in the business environment have kept marketers on toes and on the look out for new untapped greener pastures.
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