In traditional marketing, concepts called 4 Ps were worked on, which were basically, Product, Price, Point of Sale and Promotion. This model consisted of conducting market research and discovering the wants and needs of consumers and only from that analysis to develop the product.
To define the Sale price, companies did the pricing. This was done based on the cost of the product, the competition and the value to the customer. Companies had in mind that consumers' willingness to pay a certain price for the product was the biggest contribution they could make to this process.
After deciding on the product and price, companies needed to choose how to offer, that is, the Point of sale and which Promotion were willing to do. First, the product should be accessible and conveniently available to consumers. Customers should be informed of the presence of the product using different methods, such as advertising and sales promotion.
What caused this scenario to change?
With the democratization of the use of the internet, and the increase in social networks, the marketing mix or the 4Ps were reformulated and defined as the 4 Cs. Who are co-creation (Co-creation), Coin (Currency), Community activation (Communal Activation) and Conversation (Conversation).
In the digital economy, the product creation process has changed. Consumers participate actively. Through co-creation, customers have an early involvement with the brand. This allows products to be customized and personalized, thus improving the success rate and acceptance of the product.
In this digital age, the price is equal to the currency, which fluctuates according to market demand. The pricing concept, therefore, also undergoes modifications. Currently, online retailers, for example, collect a huge amount of data. This allows you to offer prices segmented by different audiences and dates.
This type of dynamic pricing allows companies to optimize profitability by charging different customers in different ways, based on the pattern of their purchase history.
Consequently, the point of sale and the form of sales promotion have also been modified. Today, the most powerful distribution concept is point-to-point distribution. In a connected world, consumers want immediate access to products and services. Which is only feasible if there are people close by offering these activities. This is the essence of what we call community activation.
In the past, the concept of promotion has always been a one-sided relationship. Companies sending a message to consumers who positioned themselves as a passive audience. With the popularization of social networks, consumers are able to react positively or negatively when receiving these messages and position themselves as brand advocates .
Understanding these changes can be very positive for your company!
In summary, with the 4 Cs, companies have a great chance of surviving and maintaining competitiveness in the digital age. However, it is necessary to accept that the sales paradigms have changed. In an active world, the customer as much as the company acts actively and the tip is that the company's positioning in this process is as transparent as possible.
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