Linking the 4Ps to Lean Marketing

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This week I was challenged that I had spent little time creating the linkage between Lean Marketing or the Value Steam Marketing concepts and the classic 4 P’s. The reason why is that I believe marketing has changed from the 4 P’s to a demand driven or pull type of marketing that is fundamentally based on value. Or even more specifically Customer Value (Price).

In discussions during the development of the 5Cs of Driving Market Share Program, I asked Dr. Reidenbach similar questions to what you raised and he said,

“Another point is that the 4Ps is a functionalist approach and value is delivered through people, products and processes. We live in a process world and not a function world and the organizations that understand this are the ones that are going to dominate. The old world is a functionalist world – the new world is one that is ruled by processes. The latter is not accommodated by the 4Ps. The 5cs puts value at the heart of the issue and subsequent Cs talk about how to use value to accomplish what marketing is all about – to grow the business.”

A copy of the program content of the 5Cs for your reference.

This program is a great companion to my Lean Marketing efforts. Dr. Reidenbach extension of the 5Cs program was built into a modified DMAIC approach that enables us to approach Six Sigma driven organizations. The truth is that the tools could be used just as well in a PDCA structure as they can a DMAIC structure. The Value Stream Marketing concepts in conjunction with the Marketing Kanban come into play for segmentation and managing the content and delivery (Promotion) of it for the client. Provided when and how they want it.

The Product is an interesting animal. Several years ago, I would have said the Product or Service could be associated with customers need for a solution. Provide the solution, you have the job. However, savvy buyers have found that many times solutions are provided at a relatively low price or already known internally. The days of the manufacturer having the only solution or the best solution because of the other 3 Ps are non-existent. A customer can practically find the product for their price and their terms. The only determination left for most companies to differentiate themselves is value and not the value from their point of view but the viewpoint of the customer. That identifies the markets to participate in and how you go about acquiring and retaining customers and how you will monitor your Value Streams (Channels).

Another word about Product is since a customer can obtain it the way they want and on their terms, you can hardly afford to build inventory. Companies are extending themselves into being part of the solution such as Xerox’s takeoff on freeing customers to do their real business. So in essence, we have evolved from product to solution to “being part of determining the solution(Collaboration).

Lean Marketing is about Pull and when a prospect enters your “Value” Stream Flow you provide him the content he needs. Being a recognized thought leader within your Marketplace (Community) or being thought as Best in Market. I am not sure you have read the VSM Guiding Principles but that may help.

Republished with author's permission from original post.

Joseph Dager
Business901 is a firm specializing in bringing the continuous improvement process to the sales and marketing arena. He has authored the books the Lean Marketing House, Marketing with A3 and Marketing with PDCA. The Business901 Blog and Podcast includes many leading edge thinkers and has been featured numerous times for its contributions to the Bloomberg's Business Week Exchange.

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