Are the 4P’s – product, promotion, price, and place – still important? Has the invention of customer-centred marketing overpowered them? Has digital marketing made a huge change in advertising and sales funnels? Note that the 4P model was the go-to marketing choice for the better part of the 20th century. Would you consider Ally and Mo if you wish to modernise things.
Here, marketers used the model to reach target audience without using direct communication channels. Even worse, the channels used for communication were not providing meaningful feedback. In the 20th century, some of the dominant marketing channels include television, print media, and radio. Here, buyers had access to information about products, news, services, trends, and events.
How Did Customer-centricity Come About?
The Advertising Age in 1990 featured ab article from Bob Lauterborn. Here, he mentioned that the 4P model was dying and marketers should take time to address other critical issues. Of course, the article was right. During that time, there was increased competitiveness in the developed markets. On the other hand, customers had become increasingly knowledgeable and very choosy. Therefore, they were less likely to react positively to anything forced down their throats.
Corporations and numerous brands realised that incorporating customers in their services and product development sincerely was the right way. That’s because it provides sustained viability, for short, medium and the long-term. The 4P model was then replaced with the 4C’s model since it has a better representation of the marketing strategy.
Here, customers are at the centre of any marketing communications. Therefore, it is oriented to their needs and their buying habits. Also, it revolves around the result they are looking for and how much they will actually pay for the product.
How is Digital Technology Changing the Sales Funnel?
The sales funnel refers to the flow of customers inside your business. It starts with customers being suspects (people who are unaware of your business and who don’t have any present connection to it) then sales leads and finally actual customers. Here is what you need to know about the effect of digital technology to the sales funnel.
The Modern Customer Journey Many suppliers and customers are quite unappreciative of the notable changes in the modern customer journey for the last 15 years. Take for instance, the customer journey of a gamer, holidaymaker or gambler in the previous times. If you are going for a holiday, you had to shortlist, compare, and buy a holiday by using the services of a travel agent.
On the other hand, buying the latest video games involved visiting the local computer games store and befriending the experts. Also, gambling has become a fiercely competitive battle among various betting companies who entice people with perks and odds. The internet has completely changed the customer journeys for these types of people.
Now, customers have better control of the product through the various research phases. Therefore, suppliers and brands need to know how to respond accordingly. The changes have now been accepted. However, only a few suppliers and brands have changed their marketing efforts to reflect the new reality.
Marketing Vs Sales
Previously, marketers were not responsible for sales. That’s because they couldn’t be held to the expectation of creating the best brand experiences for customers when handling the bottom line (return on investment – ROI). The invention of digital technology has brought both sales and marketing together. In many industries, they are part of the same thing. It would not have prospered if done the same way in the previous years.
Marketers Are Now Sales Lead Generators
Digital technology has pushed the customers’ influence further down the sales funnel. As a result, there is continued convergence of the sales and marketing departments. In many types of businesses, including e-commerce sites, revenue is the direct and main objective of doing anything. There is optimisation of lead generation activities, brand awareness, sales conversions and much more. Now, these things are easier to measure so marketers can ascertain their productivity in the whole thing.
In conclusion, digital technology has revolutionised how we sell things and how customers approach and appreciate our b