4. Explain the 4 P’s in E-Marketing along with the additional 3P’s in E-Marketing of Services a) Explanation to the 4 P’s in E-Marketing b) Explanation to the additional 3P’s in E-Marketing of Services
Answer: – a) Explanation to the 4 P’s in E-Marketing
The term ‘marketing mix’ was coined by Neil H. Borden of Harvard Business School, who explained the concept in his article The Concept of the Marketing Mix in 1964. The article elaborated the elements of the marketing mix, which he explained were necessary ingredients for creating a balanced and attractive offering to customers. It was Professor E. Jerome McCarthy who divided the mix into the 4Ps – product, price, promotion and place.
Product
The product may be an item for sale or a service, and these may be direct to the consumer (B2C) or to businesses (B2B). The product is the most important part of the business. Thus, it is crucial for a business to showcase its products to potential customers. In an online business, the product and its specifications should be shown clearly. In case of electronics, the technical details, model specifications, compatibility, etc., should be displayed. In case of apparel, the size, fabric and colour should be given.
In case the product is a service, the USP of the service should be highlighted. Since it cannot be shown, user testimonials and examples can be shown to win the customer’s confidence. While showing the product, the seller must ensure search engine optimization, so that it comes out on top of online searches.
Price
The price of a product or service is a key element of the marketing mix; it must be acceptable to target customers and it must reflect the other components of
the mix accurately. The price of the service is the value attached to it by the service provider and it must correspond with the customer’s perception of value. If the service is priced too high, customers who will not buy it will see it as poor value for money. On the other hand, if the price is too low, the service or product may be perceived as inferior in quality.
Promotion
Promotion is used to communicate information about goods and services to target market audiences, thereby facilitating the exchange process by closing the information gap. It is sometimes argued that effective marketing – offering the right service at the right price in the right locations to meet target customers’ needs and wants – should not require extensive promotional activity as the products or services will ‘sell themselves’. There is an element of truth in this, as the purpose of developing a finely tuned marketing mix is to match offerings and benefits very closely to the needs of identified target groups of customers. The result of this, in theory, is that customers will favour one particular organization over competitors and will actively seek their service offerings.
Place
Most producers of physical goods do not sell directly to their end consumers in today’s market. They can make choices about where to produce the goods, based on lower labour costs and other considerations, together with decisions about which markets to sell the goods in and how to get the goods to the consumers. Distribution, or the ‘place’ element, of the marketing mix is concerned chiefly with two main issues: accessibility and availability.
