BUS 2201: PRINCIPLES OF MARKETING

In this essay, I will compare and contrast the four Ps (Price, Product, Place and

Promotion) approach to marketing versus the value approach (creating,

communication and delivering value). I will also explain the similarities and the

differences between those two distinctive approach if we had to compare two

companies who apply one or the other approach.

The marketing mix, also called the four Ps approach was introduced in the fifties and

it became the traditional approach to marketing. When this approach is more focused

on the product itself, the value approach is more focused on delivering value to the

consumer.

The major components of the four Ps approach are product, price, place and

promotion. The first step in the marketing plan is having a product.

The companies first determine the need of the customers and then create a product to

fulfill that need or demand. The second step is determine the price. For that part, they

would need to be competitive. The place being the third step , which consist in

finding the right emplacement to sell the products. The last step is promotion, that

means communicating about the product to consumers.

When many has been working with the four Ps approach for years, the market

evolving made it less and less effective. So another approach was developed, calling

for creating, communicating and delivering value: it was the value approach.

The value approach focused in delivering value to the customers.

Just like the first step in the 4Ps approach, the first step of the value approach consist

in creating the product, except that in the second approach, the focus is emphasized in

creating a value that would benefits the consumer, more than just a product.

Communicating value can be compared to the promotion step in the 4Ps approach. It

consists in delivering information concerning the product offered but also the value

that it brings to the consumers. Delivering, which could be compared to the place

step, consists in making sure that the consumer can easily access to the product but

also to the values and benefits it implies. The last step is finally the exchanging value,

that consists in trading the value offered to consumer with an amount of money.

In conclusion, both approaches can be comparable in some level because they both

seek the same outcome and have the same fondation. However, the value approach

could be considered a reviewed version of the traditional 4Ps marketing approach. It

emphasized its focus on the value of the offering , not just a product.

Reference:

Tanner, J. & Raymond, M.A. (2015). Principles of Marketing. University of Minnesota

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