Question

Compare and contrast the four Ps approach to marketing versus the value approach (creating, communicating, and delivering value). 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? Please, provide at least two examples.

Answer 1

The 4p’s of marketing and value approach have somewhat similar implementations but still, at the core, they have different functions.

1. While the Product phase of 4P’s is considered with the creation of the best product for the customer, the value approach creating value caters to how a product can create value for the customer and that determines the process, not the other way round.

2. The promotion phase of the 4 P’s deals with explaining the benefits of the product and its services while the Communication value in the value approach communicates the value aspect the product creates for the customers and not just the benefits of the product in general.

3. The Place phase can be considered to be similar to the delivering phase in the value approach but while place determines the area/market and the segment the product will be placed in, delivering value approach requires that the product is successfully able to be delivered to the consumers, it can also be a service.

4. The Price phase is similar to the exchanging value of the value approach in the sense that it requires the exchange of monetary value of the customer but, this value, in the case of price, is set based on the product while in the case of exchange, depends on the service that is presented to the customers and its values

The main difference between 2 companies that operate using the 2 different models is that they can easily be distinguished based on the value and relationship they have with their customers, while the 4 P's approach seems more analytical and straightforward,m the value approach is more laid back and catered towards the need of the customer as the basis for their product and their entire model revolves around presenting value to the customer and not just creating a valuable product for the customer’s use. For example, a company that creates electronic devices charges for customer support on a yearly basis while another company sells almost the same product but provides support to the customers in their needs is considered as a value approach.