Evolution Of 4 Ps In Digital Marketing And Its Effects
The foundation of marketing has always been the Product, Place, Price and Promotion. But in the era of digital marketing, they have evolved. Let’s see how!
What are the 4Ps in Marketing?
So in earlier days, the basic principles of marketing revolved around these 4 Ps. It basically meant that you have a great marketing strategy if your product satisfies the needs of the customers and stands out from its competitors.
You had the right place to sell your product, i.e. your product was available in the right stores. Also, it was in the right marketplaces and you had good distribution channels. You aced the price criteria if your product offered value for its price and was reasonably priced as compared to its competitors. And then finally the promotion, which meant how you advertise your product, i.e through print or electronic media. You could reach your audience through newspapers, magazines, billboards or TV, radio, documentaries, etc. There were a lot of factors that affected promotion, like day, time, etc. Also, one had to keep a close eye on the competitors promotional strategies.
However, these principles have now become obsolete in the era of digital marketing.
The Evolution of 4Ps in Digital Marketing
It is important to understand that the traditional 4Ps are still quite important. But with the majority of marketing shifting online and advancement in technology there has been a change in the way marketers communicate with their customers.
These days, whenever we have to buy a product or service, we first go and do our research online. We compare the prices offered by different sellers both online and in store. We then read the reviews of similar products and then finally decide which product to get and from where. There is barely any role of traditional marketing in influencing our choices these days. All the information we look at is available to us through a form of digital marketing. So let’s see how the 4 Ps have evolved.
For marketers these days, the biggest product is not the product they want to sell but the data of the customers. If they know what are our browsing habits, what are the things we are looking for, and what have we been talking about, that’s it. Your social media will be bombarded with advertisements related to your recent searches. A few days ago, I was searching for airpods on google. Since then, the only advertisements I get whenever I open youtube, facebook or instagram are of bluetooth earphones and other similar devices. Hence, our data is the most valuable product for the marketers.
In the era of e commerce today, the traditional place dimension sounds a little obsolete. However, the customers carry their devices everywhere. Digital marketers target advertisements of products/services available nearby. For instance, I was in Howth last week and I was looking for fish and chips. When I searched for fish and chips on google, all the advertisements I got on social media platforms were about hotels and eateries in and around Howth. That is the main function of the place dimension now.
A lot of other factors have kicked in for price. Products are offered at a cheaper price online as the dealers margin and a few other logistical costs are saved on every product sold online. These online platforms cost us nothing, however we pay for services like amazon prime in order to access premium services. However, advertisements are the main source of revenue for all these online platforms. Each ad has a different price at a different time. That is how the price dimension has changed.
The promotional dimension has evolved from advertising on print/electronic media to web advertising. Advertisements on platforms such as google, facebook, youtube, etc. are more cost effective. This is a more effective as well as efficient way to advertise for the companies. This is the present and the future of this dimension.
Effects of the Evolution in 4 Ps
It is quite obvious that digital marketing is the present as well as the future. Though there are some concerns around surveillance capitalism. With laws like the GDPR, such concerns can be resolved.