It is essential for businessmen to know what kind of strategy to develop in marketing, and the basic policies and ideas.
However, even if you go out into the field, you won’t be taught this kind of thinking by your superiors or seniors.
So, some of you may be wondering where… Unfortunately, you need to learn before you go out into the field.
Therefore, this time we will explain the differences between ”
4P analysis
” and “4C analysis” in marketing from various perspectives.
If you’re called into a last-minute marketing meeting, don’t panic. It takes about 3 minutes to understand.
4P analysis is based on the “corporate perspective”
First, let’s explain the 4P analysis.
This is a theory proposed by American scholar Edmund McCarthy in 1960.
Simply put, it means
looking at marketing from the perspective of the “company side” and the “seller side
.”
“4P” is a collection of the initial letters of words consisting of four P’s.
The four words are:
- Product
- Price
- Distribution (Place)
- Promotion
In other words,
the basic axis is to think about “what products to sell, at what prices, through which distribution channels, and how to promote them” from a “corporate” perspective
.
4C analysis is based on the “customer perspective”
Next, let’s talk about 4C analysis. About 30 years later, while the concept of 4P analysis had become established to some extent, a new marketing theory was proposed.
That is 4C analysis.
Simply put, it means
looking at marketing from the perspective of the “customer side” and “buyer side
.”
It was proposed in 1993 by university professor Robert Lauterborn.
This is also a collection of the initial letters of words consisting of four C’s.
The four words are:
- Customer Value
- Expenses
- Customer convenience
- Communication
In other words, “What kind of value does the customer receive? How much money and time does the customer spend? What is the availability of information for the customer? Are we delivering the information that the customer wants? What is the voice of the customer?” This is
marketing that primarily considers from the customer’s perspective
whether the message is being delivered.
Have you moved from 4P analysis to 4C analysis?
Now, the difference between the two is that their basic viewpoints are different.
But that’s not all. The two concepts were not simply proposed in parallel, but are chronologically connected.
The point is that 4C analysis of marketing came out after 4P analysis.
This can be said to be due to the limitations of 4P analysis. This is because the era in which 4P analysis was the mainstream was the time when “product out” was at its peak.
Product-out is a method of focusing on the manufacturer’s plans rather than the customer’s perspective when developing and producing products.
In other words, the world was at a time when new products were being developed one after another. Therefore, if a new feature that had never existed before was added, it would sell.
Just because it was a “new product,” the customer had no choice but to purchase it.
We live in an era where you can become a winner if you develop a product. It will be easier to understand if you imagine it as a blue ocean.
However, with the passage of time and various technological innovations, the blue ocean turned into a red ocean.
Follower companies develop similar products, and the differences in products, products, and services themselves disappear between companies.
In this way, product-oriented marketing has reached its limit.
This is where 4C analysis comes into play.
4C analysis is a marketing theory from the customer’s perspective.
When it comes to product development, such as deciding what kind of product to make, it is
now mainstream to come up with ideas mainly from the “customer side”, rather than from the “company” side, which has been the main focus of the past
.
The way we think about this is to think from the customer’s perspective, how we can sell to our customers, and what kind of things our customers are looking for.
Furthermore, that is not the only reason behind the shift from 4P analysis to 4C analysis.
The world is now overflowing with so much information that it’s hard to comprehend.
On the other hand, from the customer’s perspective, there are many different ways to obtain products and services. A lot of information is available on SNS, and it becomes possible for customers to compare and consider products and services. In this way, with the development of IT technology, customers themselves are becoming more proactive.
In other words,
customers who were previously passive are now actively seeking information and searching for products and services
.
Therefore, in marketing as well, methods and theories that actively focus on the “customer” have become necessary.
4P analysis and 4C analysis methods
Now, let me explain how the methods differ between 4P analysis and 4C analysis, using specific examples.
Here, we will use a company that sells printers for the BtoB field as a specific example.
What actually happens in 4P analysis?
Plan your marketing strategy by looking at the following items one by one.
・Product
They will focus on the strengths of their products and push them to the forefront of their marketing.
We will highlight the core aspects of our product development, including how we have upgraded our products from previous ones. Regardless of what customers are looking for, think about how you can appeal to your company.
・Price
You will have to make a decision while looking at the prices of other competitors.
・Distribution (Place)
We will be thinking about distribution methods that will reduce our own costs.
・Promotion
We consider the customer’s lifetime value, determine how much advertising can be spent, and carry out sales promotions.
Next, what about 4C analysis?
We will develop a marketing strategy while considering each of the following items.
・Customer Value
It is not enough to simply focus on the printer’s features such as printing speed and image quality.
You need to think about what your customers value
.
For example, if you are a camera studio, you will pursue good image quality first.
However, other companies may place value on factors such as the size of the printer.
You need to analyze where your customers are looking for value.
・Cost
Cost is not just about economics.
We need to be aware that it also includes temporal and psychological meanings.
You should make sure
that the costs are acceptable to your customers
.
・Customer convenience
Would you say that the whole process up to purchase is smooth?
In addition to physical stores, you should also consider purchasing online as an option.
It will also be more convenient if you have multiple payment methods.
Furthermore, if the customer is a company, it can be predicted that approval and settlement will need to be taken within the company.
Therefore, it may be a good idea for the customer to prepare the documents necessary for making the payment in anticipation of the effort that the other party would have to take.
This could be a service that allows you to instantly download a set of documents.
・Communication
Think about
whether you are providing useful information to your customers
. For example, providing content containing useful information to the person in charge of purchasing is one example.
On the other hand, in order to make the most of customer feedback, it may be a good idea to conduct surveys, roundtable discussions, and plan networking events between representatives.
What about the extension of 4C analysis?
Finally, although 4C analysis is currently mainstream, I would like to introduce an extension of it.
First, there is the idea of
the “customer journey.”
It involves looking at the entire process a customer goes through as a customer, from purchasing a product to receiving a service.
It may seem like a comprehensive settlement of 4C analysis, but the key point here is to have a firm grasp of the customer’s psychology.
You will experience the process from the customer’s side until they actually obtain your company’s products and services.
You have to think about everything from becoming aware of a product or service, collecting information, comparing it, and finally deciding to purchase it, to the after-sales service and follow-up.
If you look at the flow from this perspective, looking at what customers are dissatisfied with and what they are happy about at different times, you will naturally find areas for improvement in your company’s current situation.
Furthermore, considering customer psychology can be said to be a further evolution of 4C analysis.
In that sense, one method is to categorize your customers into five broad categories and interview customers within those segments to hear their specific opinions.
In other words,
we thoroughly analyze each customer and find common denominators
.
It is also possible to thoroughly analyze actual customer feedback regarding products and services, and use the knowledge gained from this to develop new products and services.
There is nothing difficult about 4P analysis and 4C analysis.
The alphabet may seem formal, but it is exactly what we think about in the marketing field.
Especially when it comes to 4C analysis, it is now commonplace to conduct marketing from the customer’s perspective.
Furthermore, the number of companies that conduct “customer journey” and “single customer analysis”, which I introduced at the end, is now increasing considerably.
What’s important is not the name. How should we think, and who should we consider as the subject? Actually, it can be said that it is a very simple idea.
summary
◆4P analysis takes a “company” perspective: “What kind of products should we sell, at what prices, through what distribution channels, and how should we promote them?”
◆4C analysis asks, “What kind of value does the customer receive? How much money and time does the customer spend? What is the ease of access for the customer? Are we delivering the information that the customer wants?” Take a “customer-side” perspective
◆Focusing on products reached its limits, and 4C analysis emerged.
◆4P analysis considers marketing with the “company” as the subject, and 4C analysis considers the “customer” as the subject.
◆As an extension of 4C analysis, there are concepts such as “customer journey”