For some specialists the problem is that the 4 Ps or Marketing Mix has an intrinsic weakness: "The Unilaterality" that the approach of price, place, product and promotion are variables controlled from within the organization, which in many cases are far from the point of view of the consumer, who is ultimately the reason of the own marketing.
The four Ps are no longer a relevant marketing mix because they do not reflect 21st Century market realities. We defined a new marketing mix to change your marketing thinking: SIVA, which stands for solution, information, value, and access. This article describes the steps necessary to implement this new marketing mix and profiles a pioneering firm that adopted SIVA and realized immediate results.
Chekitan S. Dev is a marketing professor at Cornell University’s School of Hotel Administration in Ithaca, N.Y. He may be reached at firstname.lastname@example.org
Don E. Schultz is a professor emeritus of integrated marketing communications (IMC) at Northwestern University’s Medill School of Journalism, and the president of Agora Inc. in Evanston, Ill. He may be reached at email@example.com.
This is not intended to discredit the model of the 4 P'S, the only intention is to focus attention to a new approach to the customer, which represents the balance of Marketing Mix that stands for:
It is the idea to work more customer-oriented so that the customer feels better understood. As a company, it is intended that solutions be offered to the customer rather than, for example, product features. So not: "the machine has a capacity of 1000 products per hour" but "thanks to this machine, production will increase efficiency and reduce costs." A customer often has a problem or dilemma and is looking for a solution. If a company thinks customer-oriented then it's more accessible to the customer.
No one will buy your product unless it offers a real solution for the customer.
We must think first of the solution rather than the development of the product or service; we must listen to the voice of the customer.
Here, what is being sold is driven by what the consumer needs. The community defines the product instead of the corporation. It is marketing’s duty to understand what the consumer wants and explain this to the corporations so that they, in turn, can produce the products that satisfy the needs of the consumer. You aren’t simply providing a product, you are offering a solution that meets your customer’s needs. This is what services do on a daily basis
Today, the market has become more transparent for customers, among other things, by the role the internet plays. Very often, customers have already read well in the available information about the product or service. But they also have more information about competitors. For the company it is increasingly important that it provides clear information to the customer. If the strong sides of the company can be substantiated with actual data, then a customer is previously prepared for acceptance.
Instead of placing ads, simply give the consumers the information they need to determine whether or not the product or services offered is both valuable and accessible to them. Many services have always operated on this basis. Customers go for a “fact finding” appointment where they learn about the service offered (by a doctor or lawyer, for example) and its price. Based on this information, they decide whether or not to become patients or clients.
The physical location of a company has become less important. Now it is important for the customer that support and services are accessible. How is the quality of service of the company and is the information that customers want to have? Through the internet, a customer can also consult suppliers or partners if certain information is not immediately available.
Think first about the level of access your customers receive and then think about the coverage of distribution channels.
The whole idea behind this is giving consumers access to products and services when and where they want it instead of dictating where a consumer has to go to get it. These days even beauticians are willing to come to your home to do your hair. Other service providers provide information and services on the Internet as opposed to making you come to their office.
Ultimately, it's not about the price of the product being offered, but to what extent it gives the customer something. A high investment is not a bad thing if a lot of money can be recovered afterwards. For most companies, therefore, it is the cost throughout the product life cycle. The so-called Total Cost of Ownership. These are all costs of the product including maintenance, repair, etc. Instead of initially talking about the price of the product, it is much better to have the value of a product for that particular customer.
If you can identify the right solution you will be on the right path to generate value.
Instead of using economic theories to set price, S.I.V.A. advocates setting the price of a good or service based on the value a product offers to the consumers. The price of services is often determined in this manner as services are intangible products that can’t be priced based on the input of raw materials.