Last month the General Manager gave you an overview of the 4P’s of marketing.  These grew up from producers attempting to sell their product to the general market.  The unfortunate thing about using the 4P’s is that they are very Product orientated and therefore it may be possible to lose sight of market trends and wants.  This might lead you to what is known as the 5^th P – oh Poo!  I have lots of goods to sell but nobody wants them.  This is obviously a bad business move.  You only have to watch the BBC’s Dragons Den to understand that modern successful business people understand that profitable businesses are built upon what the consumer wants and not what can be produced.  Week after week the Dragons look astonished when they ask their potential business partners about their products and services and find out how much market research has taken place regarding demand for such a product or service.  The fall and rise of M&S is another example, sell what the consumer does not want and you end up with low sales and reducing profits.

This is where using the 4C’s is preferable, the 4c’s are:

Consumer/Customer

Cost

Convenience

Communication

The CONSUMER is king and everything in business should be aimed at them.  You have to know who your consumer is, what they want, need and how you can attract them.

The consumer now has a massive choice of products and services and has the ability to sift through these to find the right product at the right cost.  COST is not just the price of the product, what the actual cost to the consumer is.  The consumers cost therefore can include the cost of travelling to get the product, delivery of the product, the ethical or environmental cost of the product and the opportunity cost of the product.  This is what the consumer has to give up to purchase your product, this goes back to identifying the consumers needs and wants.  If they want or need your product the opportunity cost will be your competitors products, and if they prefer your competitors product yours is the opportunity cost.  Obviously in some markets price is important but it is becoming increasingly diluted in other markets by costs that the consumer builds in.  An example could be books sold on the internet, one web site may have a cheaper price but charges extra for postage, another web site higher price includes postage, the choice is then down to the consumer. 

Internet shopping is becoming more and more popular because it is CONVENIENT.  The consumer has the ability to search many suppliers for prices, stock etc from the comfort of their arm chair, make their choice and then have it delivered to them.  All this can happen at a time that is convenient to the consumer, 24/7 shopping is here.  This convenience is not just for consumers, B2B companies are also using the internet to increase their market, an example; plumbers can now purchase stock on the web instead of popping into their local wholesaler, saving money and “work down time.”

COMMUNICATION of your product or service to the right segment of the market is very important.  You have to make sure that you are communicating to the right people in the right way.  Your marketing communications should create an awareness of your product, highlight the unique selling points of your product against the competition and above all reinforce the consumers need for the product.  Remember communication is two way, advertising is one way – telling your consumer that your product is on the market.  Attempt to get your market to communicate with you using the technologies available.  This is what market research is, and if you have a captive user audience you can create a better understanding of your market than if you went trawling for information.  Create a relationship with your consumer and they will continue to buy off you and become part of your sales team by referring their friends and family to you.

The 4C’s of marketing will increase your relationship with your consumer, and better marketing communications will allow you to understand the consumer and the market in greater detail, you will be able to increase your profits through better retention of your consumers and even resurrect old consumers back to your product or service. 

One last thing, all companies must not forget that consumers now have a greater choice of products and services available to them, and know they can purchase products from not just their local or national geographic region but from across the world.  Businesses must not only concentrate on consumers because there is an important 5^th C out there who has to be looked at just as much as the consumer.  This is the COMPETITION, always research what they are doing, if they are good they are researching you.

Neil Holden mba

coolbluec is a business interim support company specialising in helping Small & Medium sized Businesses create winning business & marketing strategies and creating more efficient business processes by installing award winning business software.

www.coolbluec.co.uk

neil.holden@coolbluec.co.uk