Brainstorming

Think over the task and sound your decision, providing with effective arguments.

The sales department has just clinched the deal of a lifetime – worth £100 million. Everyone in the company is excited and feels their jobs are secured for the foreseeable future after a few lean years. Morale is at an all–time high and both sales and production have got a spring back in their step. You do some sums on the back of an envelope and find that the total cost of borrowing to re-tool the production line is such that your company will barely break even on the deal over the next three years and make only a small profit thereafter. Do you:-

1. Put the facts plainly and simply before the Board yourself?

2. Go to the sales director, break the bad news to him and leave it to him to tell the Board?

3. Keep quiet and say nothing?

INDIVIDUAL PROJECT / 3-Minute Pitch:

Project Management Company Profile (1 by choice)

Unit 9 theory: «The 4Cs of marketing and e-marketing»

«The management process responsible for identifying, anticipating and satisfying customer requirements profitably»

Chartered Institute of Marketing

The concept of the 4Ps of product, price, place and promotion was defined by Jerome McCarthy in 1964 as the combination of all factors which a manager can utilize to satisfy market needs.

• Product – what the customer wants from the product or service and what needs it satisfies

• Price – how the price compares with competitors and how you can make a profit

• Place – how and where you sell

• Promotion – how you reach your customers (marketing and advertising your product and service)

Some marketing theorists believe that 4Ps model is able to adapt to the changing face of marketing in the digital world, while others believe it is now obsolete and a new paradigm is required to meet the new challenges.

Those who favour the existing model argue that it is sufficient to add or subtract from the existing model. Three new Ps have been added by some marketers. These include People, which encompass the skill level of employees, Process, which means the tools to ensure you offer a consistent service, and Physical evidence, which includes premises, employees and paperwork.

People who criticize the 4Ps argue that it needs a clearer customer focus. Recent marketing theory has added the more customer-orient 4Cs. Customer wants and needs is included in Product, Cost to the customer is included in Price, Convenience for the customer is included in Place and Communication with the customer is included in Promotion.

• Convenience for the customer – point of sale (the location)

• Customer wants and needs – finding a solution to customer problems

• Cost to the customer – the total price a customer pays, including things like shipping

• Communication with the customer – two-way communication with customers about products

FOLLOW-ON QUESTIONS…

1. Explain the concept of 4Ps, as well later added 3Ps.

2. What do the 4Cs stand for? Compare 4Ps and 4Cs.

3. What are the benefits of selling On-& Offline?

4. How are individual consumers different from companies?

5. What do you think are the advantages to you as a customer in buying products direct from the manufacturer over the Internet?