PAPER PRESENTATION VAN WATERSCHOOT, W., & VAN DEN BULTE, C. (1992).

THE 4P CLASSIFICATION OF THE MARKETING MIX REVISITED. THE JOURNAL OF MARKETING, 83-93.

Farrah Zeba DS-1 (Dr. Subhash Jha)

1st Yr. PhD in marketing

QUICK RECAP
PAPERS PRESENTED TILL NOW

Kotler, 1969: Extending the boundaries of marketing to non-profit organisations

Kotler & Levy,1972: Further extending it to include the transactions between an organisation & all its publics Shelby D. Hunt,1976: Debated on whether marketing is science or art & proposed that only positive dimensions of marketing can be called science Borden 1964: Marketing is still an art. Marketer is a head Chef who craftily mixes (Mixer of ingredients)twelve marketing mix elements by analysing the market forces for achieving the short and long term goals of the firm

Walter & Christophe, 1992: Criticism of McCarthys 4P classification. Improved classification matrix (negative definition of sales promotion, lack of mutual exclusiveness & collective exhaustiveness)

OBJECTIVE OF THIS PAPER

4P Revisited-Walter van Waterschoot & Christophe Van den Bulte

McCarthys 4Ps criticism Negative definition of sales promotion Lack of mutual exclusiveness & collective exhaustiveness

Paul A. Samuelson -- Classical principles can be examined (logic & factual, Paul A. Samuelson)

Improved classification matrix of Marketing Mix

Philip Kotler -- McCarthys 4P classification (pedagogical viewpoint) -- Need for better conceptual distinctions (marketing decision variables)

FLOW OF THE PAPER

AN IMPROVED CLASSIFICATION OF THE

MARKETING MIX

Outline & commentOrigin & application of 4P classification

Evaluate this taxonomy on the basis of criteria (Hunt) Deductive process

Identify observed flaws of the 4P typology

Developed the building blocks & combine them into New

classification

1. ORIGIN & APPLICATION OF 4P (OUTLINE & COMMENT)

THE TRADITIONAL CLASSIFICATION OF 4P

James Cullinton, 1948 (Mixer of ingredients)

Borden, 1964 Adopted a checklist approach McCarthy, 1960 4P framework (dominant design or received view) Simple & easy-to remember
Widely accepted tool -- Product, Price, Place & Promotion (Advertising, personal selling, publicity & sales promotion, as a residual category

2. EVALUATE THIS TAXONOMY ON THE BASIS OF CRITERIA PROPOSED BY HUNT

2a. Why taxonomy is important? 2b. Classification issues cropping from incorrect taxonomy (i.e overlap) in 4Ps framework 2c. Five Criteria of judging the taxonomy (Hunt) to overcome the flaws

2A. WHY TAXONOMY IS IMPORTANT?

Naming Science: Taxonomy (Homo Sapiens) Classification Further Inquiry

Pre-requisite of classification 1. Bases of classification should be correct 2. Categories should be mutually exclusive & collectively exhaustive

2B CLASSIFICATION ISSUES CROPPING FROM INCORRECT TAXONOMY (OVERLAP) IN 4PS FRAMEWORK

Doubling up Nothing new about it The product has been used to promote itself (offers, print advertisements on packaging) The distribution channel has doubled up as the promotion area (In store promotions (posters, demos etc) have existed ever since businesses began) The promotion medium has double up as the product (Magazines, TV channels presenting itself as both a product as well as a medium of promotion) Tripling - Franchisees

They build a brand image for themselves and replicate their features just like products do. By presenting themselves for sale they further display product characteristics. By being a store, they are part of the distribution channel (place). And finally through in store promotions, they are a most definitely a promotion medium.

WWW Making complete overlap a reality Is the web a distribution channel?? Makemytrip or irctc and have the ticket delivered to inbox/account Is the web a promotion medium?? Ads on web portals. Finally, is the web a product?? Search engine, online softwares (pdf converter), emails. Optimise these 3P and then decide the pricing strategy based on this. 4th P will always be outside the remaining 3 Ps but very much dependent on the others.

http://tryingtoseetheobvious.blogspot.in/2009/01/understanding-overlap-of-4ps.html

2C. FIVE CRITERIA OF JUDGING THE TAXONOMY (HUNT) TO OVERCOME THE FLAWS
Firstly, shema does not specify the phenomena to be classified
----Different specification of the nature of marketing mix elements (Activities procedures, policies & processes) or Objects parameters, tools, or tools)

Secondly, schema does not specify the Properties or Characteristics on which classification is based
---- Rationale for distinguishing for categories (4Ps) was never specified formally and precisely

Contd

2C. FIVE CRITERIA OF JUDGING THE TAXONOMY (HUNT) CONTD

Thirdly, schema does not have mutually exclusive categories (Overlap)
Single Web portal
Price Produ ct

Promotion

Virtual World Space

Place

Publicity Advertisin g
Real World Space

Personal Selling Contd

2C FIVE CRITERIA OF JUDGING THE TAXONOMY (HUNT) CONTD

Fourthly, Schema does not have categories which are collectively exhaustive

Product + Price + Place + Advertising + Personal Selling + Publicity + Sales Promotion (Catch all residual category growing in importance)

Lastly, schema does not serve its adequate purpose

Practical application more than theoretical development

4. IMPROVED CLASSIFICATION OF THE MARKETING MIX

OVERCAME THE FLAWS OF THE TRADITIONAL

4PS FRAMEWORK

Flaws of 4Ps Framework based on Hunts criteria

Improved Model - Deductive Approach

Criteria-1- What we are classifying? (Phenomena: ActivitiesProcedures, policies, & processes ) or ObjectsParameters, tools, or instruments) Criteria-2 What is the base of classification? (Never mentioned explicitly) Criteria-3&4 Categories not mutually exclusive (Catch all sub-category-sales promotion) Criteria-5 More useful from managerial perspective than the theoretical perspective

All demand-impinging instrument (Marketing Program Target Customers) Exchange literature General marketing objectives in managerial perspective Marketing Function Four generic marketing functions: configuration (Product Mix), valuation (Price Mix), facilitation (Distribution Mix), & symbolisation (Communication Mix) TABLE 1,Pg. 89 Sales Promotion: These specific tools can perform several functions simultaneously (Short term, situational & demand inducement tool Sales Promotion Overlap overcame by matrix model Sales promotion part of Promotion Mix & not Communication Mix TABLE 2, Pg. 90 Useful for both (Except :Inferior mnemotechnic)
Marketing Perspective exchange paradigm, the functional school of thought, behaviour modification techniques (Consumer Behaviour) Managerial Perspective proper definition of sales promotion, refined 4Ps framework

5 IMPROVED CLASSIFICATION OF THE MARKETING MIX (ONE-TO-ONE RELATIONSHIP MUTUALLY EXCLUSIVE & COLLECTIVE EXHAUSTIVE

Improved Classification Matrix of Marketing Mix, Table 2, Pg 90

Marketing Mix Product Mix Price Mix Distribution Mix

Communication (Mass/Personal/Publicity) Mix

One-to-one relationship of marketing mix elements with main marketing functions Short term, situational, demand inducement tools which support the main marketing function i.e. basic mix

Configuration

Valuation

Facilitation

Symbolisation

1. Basic Mix

(Product Features)

(Price Points)

(Distribution Network)

(Communication vehicle)

Supports
Free Sample End of season sale Trade Promotions Temporary Exhibitions (Mass Comm.) Demonstration (Personal Comm. Publicity (Publicity Comm.)

2. Promotion Mix

Product Distribution Price Promotion Mix Promotion Mix Promotion Mix

Mass/Personal/Publicity Communication Promotion Mix

WAY FORWARD MACRO ENVIRONMENT BORDEN (1953) & PORTERS FIVE FORCE

Borden,1953 (Marketing Mix 12 Elements & 4 Market forces

(1.Consumers Buying Behaviour; 2.The Trades Behaviour; 3.Competitors Position and Behaviour; 4. Governmental Behaviour)

Porters Five Force

(Porter, M. E. (2008).
The five competitive forces that shape strategy. If you read nothing else on strategy, read these best-selling articles., 25.)

Contd

WAY FORWARD MACRO ENVIRONMENT CONTD

Emerging Opportunities

Hypercompetition

Constantinides, E. (2006). The marketing mix revisited: towards the 21st century marketing. Journal of Marketing Management, 22(34), 407-438. models internal orientation and the lack of personalisation Competition, trends and macro environment are also elements reacquiring constant attention

Ergen, E. (2011) Critically evaluating the marketing mix of an academic programme. The case of Master of Science in Business Management and Technology, at CITY College International Faculty of the University of Sheffield. A combination of SWOT and PESTEL analysis is reintroduced as a compass for adapting the marketing mix in rapidly changing environment

Thank You!