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| Al Ries |
By
Al Ries
Marketing/Opinion
Fifty-six
years ago, E. Jerome McCarthy conceived the 4Ps of marketing: Product, price,
place and promotion.
Today,
product is still the starting point for most marketing programs but the other
three Ps are not particular helpful. Price would seem to be part of product.
And Place and Promotion are fuzzy concepts.
Instead
of the 4Ps, a marketing mix for the 21st century might include the 4Ms:
merchandise, market, media and message.
Step 1: Merchandise
In
the five decades since McCarthy first proposed the 4Ps, the concept of
marketing has broadened to include many other things besides products:
Services, people, ideas, movements, organizations, cities, states, countries
and countless other conceptual ideas. All of which could benefit from marketing
thinking and execution.
Instead
of product, perhaps a better term to describe the identity to be marketed is
merchandise, which could include almost anything.
So
the first step in any marketing program is to identify your merchandise in
great detail. Its name, its price, its competition, its size, its weight, its
position in consumers' minds.
Step 2: Market
One
of the major reasons to use a marketing-mix approach is the order of the steps.
As most marketing people would agree, Step 1 is a thorough study of the product,
service, person or conceptual idea to be marketed.
Step
2 is to identify the market to be conquered. Yet too many marketing people skip
this and quickly move to Step 4: Message.
Earlier
this year Automotive News and Advertising Age recently reported on the story
behind Nissan's new advertising efforts. Christian Meunier, the new U.S. sales
chief, criticized the Nissan brand as "vague" despite billions of
dollars spent on ads.
So
he locked a group of 35 to 40 marketing and advertising professionals from four
agencies in a room for about two weeks to generate new ideas.
The
idea they developed? Commercials that show how Nissan cars and trucks can help
consumers overcome everyday challenges ranging from potholes and bad weather to
running late in dropping children off at school.
The
new campaign is called "Take on," but still includes Nissan's slogan,
"Innovation that excites."
But
what's the market for Nissan vehicles? A brand that includes sedans, sports
cars, SUVs, vans, minivans, trucks and commercial vehicles. And, of course,
electric cars. That's typical thinking: Moving from Step 1 to Step 4 without
first figuring out what the Step (2) Market should be.
Marketing
is like warfare. No military general would attack on all fronts. Rather the
point of attack is crucial to an army's long-term success. And so it is in
marketing.
Quite
often a company needs to change its product line in order to zero in on a
specific market. Subaru dropped all two-wheel-drive vehicles in order to focus
on four-wheel drive.
Why
is Starbucks so successful? (With domestic sales of $16 billion last year,
Starbucks is second only to McDonald's in restaurant revenues.)
You
might assume that Starbucks is winning the coffee wars with better coffee. But
that's only part of the answer. Starbucks focused on the high-end coffee
market, with a price to match and an environment that enhanced the high-end
idea.
"Fourbucks,"
a derogatory nickname used by many customers and prospects, only reinforced the
position of the brand at the high end of the market.
As
long as there is competition in the marketplace, you can't effectively appeal
to everybody like Nissan is trying to do. That's not marketing. Step 2: Market
is absolutely critical. Pick a segment of the market to appeal to.
Step 3: Media
The
next most-important decision to make is media. And if you are launching a new
brand, your obvious choice is PR.
That's
exactly how Howard Schultz built the Starbucks brand. "It is difficult to
launch a product through consumer advertising," said Schultz,
"because customers don't really pay attention as they did in the
past."
In
its first 10 years, Starbucks spent just $10 million (total) on advertising.
And the company didn't launch its first TV campaign until 26 years after its
founding.
Many
marketing managers believe a campaign should spread its advertising resources
over a range of media. I think that's wrong.
Every
medium has its advantages and disadvantages. For maximum efficiency, I believe
a marketing campaign should focus on the one medium that works best for its
product or service.
Five
years ago, the average marketing department spent 38% of its advertising budget
on TV. Last year, the average marketing department spent exactly the same
percentage on TV, 38%.
Is
the trend to digital a good trend or not? It depends on the product. No one
medium is best for every product or service.
TV
is best for mass-market brands, especially brands that can use product
demonstrations to differentiate their brands from competition.
Print
is best for luxury brands like watches and jewelry.
Radio
is best for brands with a strong verbal message, especially if that message can
be expressed in rhyme or alliteration.
The
Internet is best for brands that have news value. For example, brands that
pioneer new categories. Furthermore, brands launched on the Internet do best
with video campaigns, not just type messages.
Step 4: Message
The
marketing mix ends with the selection of the message. Hopefully, a singular
idea expressed in one medium with one target market.
How
often does that happen? Not very often. For four reasons.
Merchandise
is a mixture of many products and services. Take the four leading automobile
brands: Ford, Chevrolet, Toyota and Honda. They all make virtually all types of
vehicles.
Market.
When you make everything under one brand name, you have no target market to
appeal to. You have to appeal to everybody.
Media.
A broad line of products designed for everybody doesn't lend itself to any
specific medium. To cover a wide range of products requires a wide range of
media. That's woefully inefficient.
Message.
No wonder the slogans of the four largest automobile brands are nothing but
mush.
Ford:
"Go further."
Chevrolet:
"Find new roads."
Toyota:
"Let's go places."
Honda:
"The power of dreams."
Last
year, these four brands spent a total of $2.4 billion on advertising. Perhaps
these four brands could use a little marketing-mix thinking.
Credit:
Ad Age.
Photo
credit: iStock
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