1.5:
The Marketing Toolkit – 4Ps to 4Es
The marketing mix or the 4Ps of Marketing, including Product, Price, Place, and Promotion, help businesses influence demand.
Product is what the business sells. For Nike, it's high-quality, innovative sportswear and accessories.
Price is what the customers pay for it. Nike's premium pricing reflects the brand's value.
Place is where the product can be purchased. Nike stores, online platforms, and retailers sell Nike products.
And promotion is how the business communicates about the product. Celebrity endorsements, digital marketing, and iconic events help Nike promote its brand.
But Nike has transitioned its 4Ps into the 4Es: Experience, Exchange, Everyplace, and Evangelism.
Firstly, beyond selling sports gear, Nike designs athletic experiences. Through innovative products, they inspire athletes.
Secondly, when customers buy a Nike product, the exchange is an investment in product innovation and excellence.
Thirdly, expanding to digital platforms has helped Nike products to be accessible everywhere.
Finally, besides advertising, Nike has created a community of brand advocates who passionately evangelize and promote Nike's products.
1.5 The Marketing Toolkit – 4Ps to 4Es
The marketing mix, or 4Ps, introduced by E. Jerome McCarthy in the 1960s, is a cornerstone of marketing strategy. It includes the following:
Product involves tangible offerings, considering features, quality, design, branding, packaging, and warranties. Understanding the needs of the target market is crucial.
Price refers to the cost customers are willing to pay, considering production costs, competitors, and consumer perception.
Place (Distribution) involves selecting distribution channels like physical stores, e-commerce, and wholesalers, aligning with consumer convenience.
Promotion encompasses advertising, sales promotions, PR, social media, and content marketing to raise awareness and persuade customers to buy.
The 4Es framework is a contemporary extension of the 4Ps that focuses on the following:
Experience: Prioritizing the creation of memorable experiences around the product or service.
Exchange: Emphasizing marketing as a reciprocal value exchange between the customer and the business.
Everyplace: Stressing omnipresence across physical stores, online platforms, apps, and social media.
Evangelism: Shifting the focus from advertising to fostering brand evangelists and loyal customers who promote the product willingly.