DISCUSSION
Are the four Ps of marketing irrelevant for retailers?
Written by RetailWire Staff
Photo: RetailWire
Through a special arrangement, presented here for discussion is a summary of a current article from the IMS Results Count blog.
For centuries, retailing has been based upon the four Ps — product, price, promotion and place. Retailers still "sell" products at a price both online and in-store. So why are the four Ps now being assailed as both inadequate and ineffective?
In the age before Amazon, retail was all about location. Customers had to come to stores to purchase. Retailers could differentiate by carrying different selections of products. And before online, pricing and promotion were instrumental in attracting customers and driving store traffic. Today, it is virtually impossible for an individual retailer to differentiate solely on product or price.
But the real reason that the four Ps are dead is the change in customer behavior and their expectations. Today's omnichannel consumers shop anytime and everywhere. They expect "unlimited" product selection, with the ability to price compare, all from the convenience of the new "place" of retail — their smartphone.
In a column on Forbes.com, Pam Danziger, president and founder of Unity Marketing, maintains that, while many still cling to the four Ps because they can control them, retailers must align with today's experience-driven customers by focusing on the four Es:
- Experience – The sum of the customer's experience is the new "product."
- Exchange – The customer doesn't just want a catalog of products at a price; they want an exchange of ideas, information and value beyond price.
- Evangelism – Promotion is not enough, and customers are tired of being bombarded with deals. Evangelism really translates to "engagement" that is personalized on the customer's terms, lifestyle and values.
- Everyplace – Stores have been replaced by "everywhere," and communication must now be everywhere as well.