The term “Marketing Mix” first appeared in the 50s and was a term uses by Neil Borden is his classes but was an early idea of James Culliton that in the 40s described the Marketing Manager as a “mixer of ingredients”. Later in 1960 Jerome McCarthy grouped these ingredients in the 4Ps that we know until now: Price, Product, Place and Promotion and called the “Marketing Mix”. More than 50 years have passed since the 4Ps were invented, and the question is if they are still valid? What changes have occurred since that time, is the technology and consumers behavior the same?
Increasingly in time, consumers are getting more empowered, having more choices available, more options and more alternatives thanks to the advances of technology and growth of the Internet, including all their social media networks like Facebook, LinkedIn, Twitter, YouTube, and Blogs.
Companies are discovering that consumers are having much bigger impact on each other that the companies them self by direct or mass marketing, the word of mouth and influence of recommendations from friends, relatives or coworkers in purchasing is highly getting importance than never before. By the other hand, the entry barriers for new companies are getting down; more companies can promote and sell online their products, get access to global markets, etc. Finally, the effectiveness of mass Medias like TV, Press, Radio and sponsorships, or traditional one-way advertising are losing relevance and impact.
With all these changes, do we need new business models, improve other ones like the 10Ps, 3Rs or the 4Cs?
The actual model or the traditional Marketing Mix is still useful, but the point is that companies have to take the next step and involve customers in their business models, moving to strong customers experiences based on generating relationships not based on products specifications, but on “firms’ lovers”, it´s in social medias networking you are searching for “followers” or “likes”.
By opening up the business model to consumers, companies are able to provide experiences that can be tailored to one´s unique preferences and gain the loyalty of the customers and obtain form them vital information of what they like, how the like it and how can buy it.
Net MBA Business Knowledge Center. The Marketing Mix (The 4 P´s of Marketing). Retrieved September 27, 2011 from http://www.netmba.com
Collier, Mark (2007,5). How Social Media is changing the 4Ps of Marketing: Stories from Real Companies. Marketing Profs. Retrieved September 27, 2011 from http://www.marketingprofs.com
Oppendisano, Rick (2010,1). 2010: The Death of Marketing, The 4 P’s and Branding As You Know It. The Marketing Muse retrieved September 26, 2011 from http://themarketingmuse.net
Van Ooterhout, Bas (2010,5). Empathy: One thing that strong business models have in common. Retrieved on September 26, 2011 from http://www.basvanoosterhout.com