Break Down Of Marketing P's : “A New Evolution” - vsrd international ...

Available ONLINE www.visualsoftindia.com/journal.html
VSRD-IJBMR, Vol. 1 (1), 2011, 59-63
S H O R T C O M M U N I C A T I O N
Break Down Of Marketing P’s : “A New Evolution”
1 Pradeep Kr.* and 2 Jugesh Aspal
ABSTRACT
The 4 P’s model given by Philip Kottler was very successful initially but when it extended to service industry it
be came 7P’s and was very successful initially but due to intense competition by the rivals these two models
proven Gospel. So, business firms were forced to develop and follow model of their own to cater the needs and
wants of the customer in customize manner. Despite of traditional models like 4 P’s & 4 C’s model for
manufacturing concern & 7 P’s models for service industry google’s has followed an unconventional model &
disrupter all the traditional ones, which can be a example for the others. Due to competition given by other
competitors it was forced to develop a new business model which could out weight others.
So, google created its own model in which it eliminated all the 3 P’s out of 4 P’s & retained only one ‘P’ that is
product. In spite of eliminating 3 P’s it is still successful in creating billions & is market leader in its particular
segment. It is also one of the top five companies in terms of creating billions across the globe. It is know a trend
setter in the market place and is proven as a market leader in all respect. It is creating landmark for the others to
achieve. Despite of following traditional models. It has followed very un-usual yet successful model.
Keywords : 3P, 4P, 4C, 7Ps.
1. INTRODUCTION
Philip Kottler is not a new name in the world of business not only because of his contribution to business world
but also his auspicious 4 P’s model which is used by almost very business firms & is considered as backbone of
the marketing worlds. His 4 P’s model is well known & very eminent for the business world. It is considered as
the foundation of the business & is included in the books of every institute & is the part of every syllabi of
business stream in each of every university.
His 4 P’s model consists of product, price, place, promotion. If we look around. His model seems to be very true
____________________________
1 Research Scholar, Department of Management, Singhania University, Jaipur, Rajasthan, INDIA.
2 Director, Administration Department, Shri Ram College of Management, Muzaffarnagar, Uttar Pradesh, INDIA.
*Correspondence : pradeep9335513146@gmail.com

Pradeep Kr. et. al / VSRD International Journal of Business & Management Research Vol. 1 (1), 2011
and feasible for every firm especially for the firms producing goods. When it comes to service industry his 4 P’s
models extends to include 3 more P’s named as process, people & physical infrastructure.
Initially his 4 P’s model was a success but when it comes to practical condition of dynamic business
environment it wasn’t last long & it was considered as the limitation of Kottler 4 P’s model. So in order to cope
up with emphatic & highly dynamic environment his 4 P’s models was replaced by 4 C’s models like below
Product – Customer need & wants
Price – Cost of Satisfy
Place – Convenience of Buyers
Promotion – Communication
This 4 C’s model was developed by famous marketing guru Arindam Chaudhary. He picked the limitations of 4
P’s model to develop his research. This 4 C’s model is generally developed to eliminate, explain & removes all
the drawnbacks of 4 P’s Models.
The 4 P’s model developed by Kotler was emphasis on seller perspective & 4 C’s model was strictly in
accordance with Buyer’s Perspective. The explanation given in 4 C’s Model is as follows.
Seller
Product
Price
Place
Promotion
Customers
Customer need & wants
Cost of Satisfy
Convenience of Buyers
Communication
2. CONSUMER NEEDS & WANTS (VS PRODUCT)
We can’t develop product & then try to sell them to mass market. We are required to study consumer needs and
wants & then attract consumers one by one with something each one wants. Hence, we should customize our
product according to their needs and wants.
3. COST OF SATISFY (VS PRICE)
We are required to realize that price what we sell the product for is only one part of the cost to satisfy. If you sell
me for example you have to consider the cost of driving your restaurant. But what if you provide a delivery
service Pricing is one of the most difficult decision. To make selling at the lowest price is not always the best
option. Ifyou rely strictly on price to compete, you are more vulnerable to competition.
Page 60 of 63

Pradeep Kr. et. al / VSRD International Journal of Business & Management Research Vol. 1 (1), 2011
4. CONVENIENCE TO BUY (VS. PLACE)
You must think of convenience to buy instead of place. You have to know how each subset of the market prefers
to buy on the internet from a catalogue, on the phone, using credit cards etc Amazon Books & Dell Computers
are just a few business that do very well over the internet.
5. COMMUNICATION (VS. PROMOTION)
You have to consider communication instead of promotion, promotion is manipulative – it’s a statement from
the seller. Communication requires a give & take between the buyer & seller. This is much more subtle. Be
creative & you can make any advertising interactive. Use phone numbers, your website address, etc to help here.
“Orange Wednesday is a good example.
Developing a brand was considered as fruitful when we took into consideration the 4 C.s noted above with this
we can begin the process of developing a brand.
6. WHAT TRIGGER TO BRING CHANGES IN 4 C’S MODEL OF MARKETING MIX
The marketing mix model based on 4 C’s was used by business organization widely to help them to decide how
to take a new offer to market. It was also used to test their existing marketing strategy. Whether marketers
consider a new or existing offer, following steps given below help marketers to define & improve their
marketing mix.
1. Start by identifying the needs & wants of the consumers.
2. Now go through & answers the 4 C’s questions arising in your mind.
3. Once you have a well defined marketing mix try testing the overall offer from the customer’ s perspective
by asking customer focused questions:
a. does it meet their needs” (need & wants)
b. will they find it where they shop (convenience to shop)
c. will they consider its price favorably (Cost of satisfaction)
d. And will the marketing communication reach them (Communication)
e. Keep on asking questions & making changes to your mix until you are satisfied that you have
optimized your mix. Given the information & facts & figures you have available.
f. Review your marketing mix regularly to cope up changes
But this model of marketing mix also faced heat of competition & it was assumed that we don’t have any
specific or universal model which can lead us to success & it is assumed that in this dynamic business
environment, we are required to define a new business model. This is the reason why companies are using
different business models to succeed in dynamic business world.
Page 61 of 63

Pradeep Kr. et. al / VSRD International Journal of Business & Management Research Vol. 1 (1), 2011
7. THE RAMPAGE OF 4 P’S & 4 C’S
Kottler 4 P’s & Arindam’s 4 C’s of marketing selling the product, price, place, promotion & customer need &
wants, cost of satisfy, communication & convenience to buy right is considered on gospel for modern business.
Suppose a very fundamental question but not irrelevant question: what will happen to 4 P’s principal if three out
of 4 P’s are zero.
For example:
Product - Present
Price - 0
Place - 0
Promotion - 0
This seems to be totally irrelevant but this is successfully followed by google’s. Google’s which is one of the
top five companies in terms of wealth declared by forbe’s magazine.
Google’s single P formula to achieve the two most elusive Ps of business popularity (75 percent share of the
internet search) & profit (14.3 billion in 2 to 8 at a margin of almost 30%) has confounded many.
If we talk about google then google has only one P that is product & all other three Ps are zero. Because
google’s products are free is means the price for google product is zero. Google doest not advertise at least yet it
means promotion is also zero. Last but not the least there is not any specific placement of its product, the
internet which is used by google is only platform it means place is also zero.
8. HOW MUCH SUCCESS GOOGLE IN GETTING BY ELIMINATION 3 OUT OF 4P’S
Conceptually the internet is challenging the media; It is forcing not to follow us traditional business models.
That will happen with or without google in the mix.
Google is spending 70% of its time working on its core search business. 20% of the time is spent on related
technological project & the remaining 10% on whatever it wants to do. Through this is how the innovation
comes.
9. ESSENTIAL INFORMATION
Any company keen on advertising on google needs to know that the success of its is based on three things. The
price it is willing to pay, key words in the search that it would like to bid on, the quality of its website. Unlike it
conventional advertising, the price is not the most proper criteria. Also, an advertiser pays only when a web
surfer clicks on its ads.
10. QUALITY CONTROL
The quality of the web site which an ad-clicks leads to a key determinants of where the ad will rank & has much
it will cost. The quality most probably depend on variety of factors such on relevance of the website vis& vis the
Page 62 of 63

Pradeep Kr. et. al / VSRD International Journal of Business & Management Research Vol. 1 (1), 2011
search terms, bound rate (speed at which a surfer navigator away from webpage).
11. GOLD EARNING EQUATION
Remember the famous black scholes option pricing equation, that brought a revolution in finance & derivatives
& want the author a noble price. Google has its own formula for figuring out how to price its ads that promises
to revolutionize the online advertising world.
Price Paid By Advertiser = Amount of Mix Highest Bid + Quality of Next Highest Bid
Quality of Advertisers Bid
12. CONCLUSION
Obviously the winner is google, it has successfully disrupted the traditional models of 4 P’s & 4 C’s and has
introduced its unconventional model. Also it is earning so heavily that it can be a role model for the emerging
companies to get success in business world. So its is the leader & winner also in all respect.
13. ACKNOWLEDGEMENT
*****
14. REFERENCES
[1] Kottler Phillip, Keller, Kevin Lane, Koshy Abranam, Jha Mithleshwar, “Marketing Management”, 12 th
edition; 102-103
[2] Joel R. Evans, Ban Benman, “Marketing 8c, reprint edition 2010, 661
[3] Michael J. Etzel, Bruic J. Wulzer, William J. Stantor, Ajay Pandit, Marketing, 4 th edition, 73-80.
[4] Kumar Sandeep, “ 4 P’S of Marketing, Vol. IV, 5 th issue ; 102-105
[5] Saran Rohit, Mitra Kushan, Aiyar Shankar, Business Today, September 6,2009 edition;30-35
[6] Banting, Peter; Ross, Randolph E.. "SpringerLink - Journal of the Academy of Marketing Science, Volume
1, Number 1". SpringerLink.
[7] Koichi Shimizu (2009) "Advertising Theory and Strategies,"16th edition, Souseisha Book Company.
(Japanese)
[8] Koichi Shimizu (2003) "Symbiotic Marketing Strategy,"4th edition, Souseisha Book Company.(Japanese)
[9] E. Jerome McCarthy (1975) “Basic Marketing: A Managerial Approach”, fifth edition, Richard D. Irwin,
Inc., p.37
[10] Don E. Schullz, Stanley I. Tannenbaum, Robert F. Lauterborn (1993) “Integrated Marketing
Communications,” NTC Business Books, a division of NTC Publishing Group.
Page 63 of 63