Kotler's New 4C Marketing Mix for the Digital Economy

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Kotler's New 4C Marketing Mix for the Digital Economy

🔥 In the digital economy the conventional Marketing Mix with 4P's must evolve to accommodate more customer participation. Kotler et al. suggest a marketing mix with four C's: Co-creation, Currency, Communal Activation and Conversation:

• CO-CREATION: In the digital economy, co-creation is the new product development strategy. The product is developed by involving customers at the ideation stage. This increases the rate of success. Co-creation also allows for customization and personalization of the products, thereby providing superior value prepositions.
• CURRENCY: Co-created products are offered at dynamic pricing, based on market demands. In the digital economy, price is similar to currency, which fluctuates depending on market demand. Industries like airlines, hospitality, retail, and all e-commerce shopping platforms today generate huge amounts of data from their customers. Using big data analytics these industries are able to provide differential pricing to different customers based on their history of purchase, location, and other profile aspects.
• COMMUNAL ACTIVATION: In the connected world, consumers demand access to products and services instantly. And with brands going global these needs can be served only by peers in close proximity. Players like as Airbnb, Uber, Zipcar, and Lending Club are disrupting the hospitality, taxi, car rental, and banking industries. This peer-to-peer distribution is the essence of communal activation.
• CONVERSATION: Traditionally promotion was a one-sided affair, wherein companies used to just make the offerings to the customers. Today, customers can easily respond to the brand offerings and brand messages and thereby generating valuable conversations. The rise of customer-rating systems such as TripAdvisor and Yelp provide a platform for customers to have conversations about and offer evaluations of brands they have interacted with.

⇒ What do you think of this new Marketing Mix?
Sources:
Philip Kotler, Hermavan Kartajaya, Iwan Setiawan, (2017). "Marketing 4.0: Moving from Traditional to Digital", pp. 50-51.

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		4 Graham Williams Management Consultant, South Africa
	Kotler's New 4C Marketing Mix for the Digital Economy I like it Subhi but suspect that many will see it as a replacement for 4P marketing instead of an addition. That is, instead of rather than as well as. But we still have products and services although they may arise and be designed in different ways, promotion including via the conversational process, pricing (where preference, variation, fluctuation, and so on are not really new but may now be more dynamic, and place (even though this may be a 'click' rather than a 'bricks' place). So what has changed is not so much the components of the marketing mix, but the evolving nature of these components.

		1 Dr. Klaus Nuehrich Management Consultant, Germany
	Kotler's 4C not a New Marketing Mix For me that is really not new and not at all the replacement of the 4P. Due to the technology it is possible to do these things which ever have been done faster more in real time and based on more data. So far I agree with Graham.

		1 Alkhaly Mohamed Tahey Conde Lecturer, Guinea
	4 Ps AND 4 Cs These two models are useful, but the four P are the fundamentals in Marketing Mix. The four C are complements for the information economy. So the 4 Ps and the 4 Cs are not exclusive; they must be integrated, to analyze the process of exchange and commercialization in different types of organizations.

		2 Mudukula Mukubi Business Consultant, Zambia
	Kotler's 4C versus the 4P Model Interesting additional perspective, primarily good to use for the digital age. However, no marketing enterprise is sensible that does not primarily rest on the 4P model.

		1 Serwaa Student (University), Ghana
	Kotler's New 4C Marketing Mix for the Digital Economy This is interesting. Kotler's 4C seems to involve customers. However the 4C Model is not contradicting the 4Ps. I agree businesses could use both...

		0 Gandhi Heryanto Management Consultant, Indonesia
	Digital Technology Changes the Way You Apply the 4Ps Concept The 4Ps concept of price, product, promotion, and place are still relevant but the way we convey messages and communicate with customers must change according to their behavior. In the digital age they need experience and information about the value of the product before they decide to buy. The availability of a marketing approach should enable us to connect with consumers. Marketing technology allows us to provide them with a personalized experience so that they will eventually know the value of the products offered. One significant connection concept for this is customer relationship management.

		0 Warren D. Miller, CPA, CFA Strategy Consultant, United States
	The 4 Cs versus the 4 Ps I'm sticking with the 4 Ps because I don't think the 4 Cs add anything that's essential to the conversation.

		1 Victor Inambwae Zambia
	Similarity Between Co-Creation and Conversation It appears to me that of the four 4 Cs that are explained here there is some similarity between Co-Creation and Conversation which both seem to highlight the importance of customer or consumer participation.

		1 Alkhaly Mohamed Tahey Conde Lecturer, Guinea
	4 C in Knowledge Industries @Victor Inambwae: The four Cs Model is also useful in the knowledge, cultural and information industries. I confirm that the four Ps are always valid, irrespective of the economic sector.

		2 Helen Strong Business Consultant, South Africa
	Role of 4 Cs For me the 4Ps are the 'what' for the strategies and the Cs are a new way of describing the the 'how'. Definitely technology and the need of the new generation in the market to participate have led to identification of these methods.

		1 rustenburg Business Consultant, Netherlands
	4 Ps AND 4 Cs In my opinion, it is just marketing to use new keywords from time to time. From systematic approach you use the 4-5 P's and/or 4 C's. In business-to-business, we use since decades the 4-5 P's and 4 C's. Are Airbnb, Uber still disruptive? I think not: it is common business today. If not, a company has no reason to exist. Today, the "Corona virus" is disrupting to the world business and needs all of our attention. This virus will: - Change the way of working; more at home; - Change the production and logistics; sharing risks; - Increase the power of authorities regarding a set of priority products; - Focus on tools and factors for forecasting: impact and frequency of factors. .

		1 Sumit Kumar Pattnaik Student (MBA), India
	Refreshing Read This discussion has given me a whole new perspective regarding how powerful the digital economy has indeed become in the last few years.

		1 Maurice Hogarth Consultant, United Kingdom
	Rephrase to Imply New and Different As pointed out the C's are not new, but more like aspects of the P's. Product / Co-creation - It is increasingly important to involve future purchasers in the design and development stages. Price /...

		3 Garth Sutherland Consultant, South Africa
	Do the 4P's Require Clarification? All models evolve! That is the nature of academia. But the 4P's? And life evolves whether one needs to, desires it, or wants it to. Even the P's now stand at 7 (or 8 or 14?) but the most valuable ad...

		1 Maurice Hogarth Consultant, United Kingdom
	Clarification from Evolution @Garth Sutherland: Agreed, life evolves and that is true for models too. Evolution is, however, a natural process that arises from something fitting better into a niche; something that arises from the...

		3 Shubhi Kotiya CxO / Board, Germany
	The Key in 4C's is Customer The responses from many members from the forum echo the importance of 4Ps. And it's not at all questionable. 4P's carry their equal importance. Also, few of us acknowledge and appreciate the 4C's. Acc...