Comparing Marketing Approaches: Value Approach for Sales and Revenue Growth
Compare and contrast a four Ps approach to marketing versus the value approach (creating, communicating, and delivering value). Select and examine these approaches for at least one routine and non-routine problem. What would you expect to be the same and what would you expect to be different between two companies that apply one or the other approach?
Different organizations adopt different approaches to marketing. However, they all want the end result of improving sales and revenue for their outfits. Some organizations dwell on the 4P’s approach, while others opt for the value approach to marketing. The two methods have their differences, and focus on any of them is determined by what the company mostly wants to do to its customers. Some organizations are focused on delivering quality, while others desire to give the best prices. These differences are manifested in the marketing approach of an organization. There are two major approaches; the 4Ps’ marketing, and the value approach marketing.
The 4P’s is the traditional method in this case, well known for its longevity in use since the 1950’s. The 4P’s stands for product, price, place, and promotion. This method much more focuses on the product, where the organization seeks to deliver the needed product at the right price, at the correct destination and promote it accordingly. Without the product, there is not much that the organization can do. Having the product is the first step in the whole marketing process. It has worked for years, and many companies have reaped from using the marketing mix of 4Ps. But it is being challenged by the value approach. The value approach to marketing has its focus on the value of the product or service delivered to the customer. Its basic tenets are creation, communication and delivery of value.
One routine problem that occurs in organizations is customer complains on the price and unlatching quality of goods. As such, the organization may cut across the two approaches and use them in their marketing. First, the organization should investigate the product needs of consumers in terms of quality and ensure that they create value of their products to match the same. This should then be coupled with the right pricing, great promotional activity, and delivering the value product at the place of need of the consumer.
There are similarities of the two approaches that can be observed. One that can be seen is in promotion of the product in 4Ps, and it is much the same as communicating in the value approach. Another similarity is in creation of value which matches with the product element of the 4Ps approach. Delivery of value compares to the place element of the 4Ps. Therefore, the two approaches are more similar than they are different. A company applying the 4Ps approach and another one applying the value approach should therefore have intersecting acts in the way of the similarities cited above.
The major difference between the two comes in place of product creation. The 4Ps approach is meant to ensure that there is product supply meeting the market demand, whereas the value approach method ensures that market quality specifications and the pricing in the market are reflected in the value of the product they offer. The 4Ps approach usually halts at the point of purchase where the customer acquires the product, whereas the value approach usually goes a step further by offering after sales services to the buyer. Each of the two methods is appropriate for its specific cases; and it is usually upon the organization to make a choice on the method to apply for their marketing purposes. The success of any approach can be evaluated by reviewing the sales and revenue figures of the organization.
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