The Evolution of Marketing Management

Evolution of Marketing Management

Many years ago, McCarthy classified various marketing tools into what he called the Four Ps of the marketing mix. Marketers traditionally view the Four Ps as the most fundamental components of marketing.

Given the breadth, complexity, and richness of modern marketing, however, simply relying on the Four Ps can be limiting. Understanding marketing requires a holistic view. Yet, clearly, these Four Ps are no longer the whole story.

The Four P Components of the Marketing Mix

•       Product: Product variety, Quality, Design, Features, Brand name, Packaging, Sizes, Services, Warranties, Returns.

•       Price: List price, Discounts, Allowances, Payment period, Credit terms.

•       Place: Channels, Coverage, Assortments, Locations, Inventory, Transport.

•       Promotion: Sales promotion, Advertising, Sales force, Public relations, Direct marketing.

Understanding the Four As of Marketing

According to Jagdish Sheth and Rajendra Sisodia, poor management as a consequence of not knowing what drives consumers is behind the majority of marketing failures. The authors argue that a customer centric marketing management framework offers a more reliable route to success.

They propose the Four As of Marketing Acceptability, Affordability, Accessibility, and Awareness, as the most important customer values.

•       Acceptability: The extent to which a firm’s total product offering exceeds customer expectations. Acceptability includes both functional and psychological aspects and is strongly linked to brand image, packaging, and design.

•       Affordability: The extent to which customers in the target market are able and willing to pay. Affordability combines economic (ability to pay) and psychological (willingness to pay).

•       Accessibility: The extent to which customers can acquire the product. Accessibility has two dimensions: availability and convenience.

•       Awareness: The extent to which customers are informed, persuaded to try, repurchase, and recommend the product.

The Evolution of Marketing Management

•       Marketing Mix Four Ps: Product, Place, Promotion, Price.

•       Modern Marketing Management Four Ps: People, Processes, Programs, Performance.

The New Marketing Realities

Figure 1.7: The New Marketing Realities:

Marketing today is shaped by major external forces and new consumer and company capabilities.

Marketing Management Tasks

To succeed in this environment, companies must capture marketing insights, connect with customers, and build strong brands.

•       Capturing Marketing Insights: A reliable marketing information system is necessary to monitor the environment and assess potential demand. Companies must track suppliers, intermediaries, customers, competitors, and macroenvironment forces.

•       Connecting with Customers: Firms must create value for chosen target markets and develop strong, profitable, long term relationships. They must understand who buys, why they buy, and how to reach them effectively.

•       Building Strong Brands: Companies must divide markets into segments and develop positioning strategies that reflect customer needs and competitive realities.