According to the American Marketing Association marketing is “the activity, set of institutions, and processes for creating, communicating, delivering, and exchanging oﬀerings that have value for customers, clients, partners, and society at large (Tanner & Raymond, n.d)”. The marketing mix is a combination of the 4Ps. The 4ps of the marketing mix are the product, price, promotion and place. The value approach of marketing is creating, communicating and delivering value. I will compare and contrast the four ps of marketing to creating, communicating and delivery approaches of market.
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The Four Ps
The four Ps approach to marketing are the product, price, promotion and place. Product is what you are selling to a customer. Products are goods and services. Goods are tangible. Example of goods are coco cola bottle, clothes, and shoes. Service in intangible. Example of a service is getting a haircut, having your lawn mowed, and hiring someone to your taxes. A product should include quality, branding, design, packaging, variety, company image, aftersales service and warranty. The price should include discount, payment plans, bonuses, retail and credit term. Promotion includes sales calls, sponsorship, sales promotion, advertising personal selling, public relationships, brochures and email. Place is how you going to distribution the product. Place includes delivery, download, stores, logistics, online stores.
The value approaches of marketing are creating, communicating and delivering value. Value is the evaluation to a cost and benefits of a product or service. Customer value increases when either benefits increase and/ or cost decrease. When both benefits increase or decrease equally there is no effect on the customer value. The essence of creating value is trading something that is low cost to you for something that’s of high value to your customer. The essence of value is against something that is low cost for your customer against high value to you. Cost are what customers perceive as a loss for them and the value they award to it is strongly related to what they loose and how valuable that is to them. Benefits what the customers perceive as gain for them and the value they award to it is strongly related to the way they experience the benefits in their daily lives. Cost and benefits are expressed in money, time, attention, reputation, status, comfort, excitement, privacy, ease of mind, effort etc. Customer value increases when either benefits increase and/ or cost decrease. When both benefits increase or decrease equally there is no effect on the customer value.
Communicating is a broad term in marketing that means describing the offering and its value to your potential and current customers, as well as learning from customers what it is they want and like (Tanner & Raymond, n.d). You can communicate with your customers by educating them on your product and its value. Explain to them what the product is, what does it do, what are the problems and solutions, how does it compare to other products, why is your product better than others. Value-Delivery involves everything necessary to ensure every paying customer is a happy customer: order processing, inventory management, delivery/fulfillment, troubleshooting, customer support, etc. (Kaufman, J., 2010).
The Four Ps and Value Approaches Of Marketing
The four Ps of the marketing and the value approaches of marketing a similar and different. The four Ps goals are to create the product according to the customers needs and they are going to target a specific market. The 3 value approaches does the same thing. The difference is they sell value to the customers. Firms create products based on the needs and wants of the customers. Creating the value of a product does the same thing. Except for creating the value will show the customers the offering and benefits of the products. It will explain to the customers how valuable the product is and why they should pay for the product. Promotiondeals with giving the customers of the offers of the product by advertising. Communicating value deals with educating the customers the value of what the product is offering. Its letting them know the benefits, cost, services, problem, solution etc. Also, it’s getting feedback from the customers on what they think and how they feel about the product. Communication advertises the product to the customer and educated them on the value of the product. Place is where the customer will be able to get the product from. Delivery will make sure the customers get the whole package of the product from the place the company is sending it from. The whole package includes services, cost, benefits, product and its value.
The Market Mix of Starbucks
I think the 4ps of marketing and the approaches value of marketing will work about the same except one will make more money the other. For example, Starbucks uses the marketing mix. They are the leading coffee chain in the world. Know other coffee brand can beat them. Their products are baked goods, smoothies, coffee, tea, merchandise, Frappuccino and coffee. Their prices are high compared to other sellers. Places they make available for customers to get coffee are coffeehouses, mobile apps and retailers. Promotions are through advertising, word of mouth, public relations and sales promotions. Bruw Cold Brew Coffee is a company that uses the value approach. Max Feber created Bruw cold brew coffee. Cold Brew coffee is coffee brewed in cold water. He saw a problem with trying to cold brew coffee with hot brew products. The hot brewing filters do not work with cold water. He came up with the idea of putting a double sided mason jar lid with a filter in the center to brew cold coffee. Mark creating the product and he explained to the customers on shark tank why it is valuable to the coffee market. He communicated by the word of mouth and educating the people on how he came up with the coffee and how it works. Also describe the value, the cost and benefits of the coffee. He delivered the value of the coffee by delivering to the customers the cost, benefits, advantages, value, products etc. I expected Starbucks prices to be higher price than Bruw Cold Brew Coffee.
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But, Bruw Cold Brew Coffee prices are higher than Starbucks. I expected both companies products to have good quality, and quantity. I expect both companies to use the different approaches and receive the same results for as communicating and advertisement. Bruw Cold Brew Coffee was communicating to the people on shark tank and advertise well to the people who was watching shark tank. Starbucks have big advertisement on tv commercials. Both companies have won big audiences by advertising and communicating on tv. Starbucks have done well doing the market mix and made them a billion dollars company. The 3 value approaches work for Bruw Cold Coffee because they were able to explain the value of the coffee product they created and get a lot of people attention and now they are worth over 38 million dollars.
The market mix is a combination of the 4 Ps. Four Ps of marketing product, price, promotion and place. The 3 value approaches are creating, communication and delivery value. I have explained the meaning of the 4 ps and the value approaches. Also, I have compared and contrast the 4 Ps and value approaches. And I have given example of to coffee companies using the two different approaches. Starbucks and Bruw Cold Coffee both have great products and both are making good revenue using different approaches with their customers.
BusinessTeacher.org provide free business resources and online learning tools, perfect for helping students and professionals to develop their knowledge and gain a better understanding of different aspects of business. If you are looking for additional support and resources related to Marketing, please find more Marketing resources below:
- BRUW COLD BREW COFFEE FILTERING. (n.d). Retrieve from https://allsharktankproducts.com/shark-tank-products-home/bruw-cold-brew-coffee-filtering/.
- Greenspan, R. (20190. Starbucks Corporation’s Marketing Mix (4Ps) Analysis. Retrieved from http://panmore.com/starbucks-coffee-marketing-mix-4ps-analysis.
- Kaufman, J. (2010). The Personal MBA: Master the Art of Business. Retrieved from https://personalmba.com/.
- Randazzo, G. W. (2014). Developing successful marketing strategies. Retrieved from https://ebookcentral.proquest.com.
- Tracy, B. (2014). Marketing. New York: AMACOM.
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