What is 4C Marketing? A thorough comparison with 4P! Leading to success through a shift to a customer-centric strategy.

"I want to review my marketing strategy, but I don’t know where to start…"

In today's rapidly changing market, traditional product-centered marketing strategies find it increasingly difficult to capture customers' hearts. To accurately identify customer needs and build relationships, a shift to a customer-centered marketing strategy is essential.

This is where "4C Marketing" comes into focus. In this article, we will clearly explain what 4C Marketing is and thoroughly compare it with traditional 4P Marketing. From the four perspectives of customer value, cost, convenience, and communication, we will discuss practical steps to construct a customer-centered marketing strategy, including successful examples from companies like Starbucks. The Cascade editorial team will share tips for achieving success with 4C Marketing!

Is 4P Marketing Outdated? Reasons Why Customer-Centered 4C Marketing is Gaining Importance

In today's rapidly changing market environment, the traditional product-centered marketing strategy of 4P is struggling to capture the true needs of customers, making effective marketing activities increasingly difficult. To enhance engagement with customers and achieve sustainable growth, a shift to a customer-centered marketing strategy is indispensable. Recently, "4C Marketing" has been gaining attention. By adopting a customer-centered approach and flexibly responding to market changes, it leads to improved customer loyalty and stable business growth.

What is the Fundamental Difference Between 4P and 4C?

The biggest difference between 4P and 4C lies in their perspectives. While 4P is a company-side perspective, meaning the product-centered idea of "what to sell," 4C is a customer-side perspective, focusing on "what customers are seeking."

This difference in perspective has a significant impact on the overall marketing strategy. With 4P, companies try to promote sales by creating excellent products, setting appropriate prices, securing effective distribution channels, and conducting attractive promotions. However, in today's market where customer needs are changing, this approach alone is insufficient.

On the other hand, 4C starts with the customer's needs in mind. By emphasizing the four elements of value for the customer, costs borne by customers, convenience for customers, and communication with customers, it aims to enhance customer satisfaction and establish long-term relationships.

Item 4P (Company Perspective) 4C (Customer Perspective) Product Product: What kind of products to sell Customer Value: What kind of value can be provided to customers Price: What price to set Cost: How much cost must the customer bear Distribution Place: How to distribute the product Convenience: How to make purchasing convenient for customers Promotion Promotion: How to promote the product Communication: How to communicate with customers

Responding to Changing Market Needs: Reasons for Choosing 4C

Today's market is constantly changing due to technological innovations, globalization, and diversification of consumer values. In such a rapidly changing market, a product-centered approach like 4P has difficulty responding quickly to changes in customer needs, making it challenging to maintain a competitive edge.

On the other hand, 4C, being a customer-centered idea, can flexibly respond to market changes. By constantly keeping a pulse on customer needs and adjusting products, services, prices, distribution channels, and communication methods to match these changes, it becomes possible to maintain and improve customer satisfaction and achieve sustainable growth.

To build good relationships with customers and enhance customer loyalty, a customer-centered approach through 4C Marketing is indispensable. In the next section, we will further compare 4P and 4C in detail, incorporating specific examples.

Thorough Comparison of 4P and 4C! Shifting to a Marketing Strategy Considering Customer Perspectives

The traditional marketing strategy centered on 4P was based on a product-centered mindset. However, in today's market, customer-centered perspectives are essential. Thus, 4C Marketing, which incorporates customer perspectives, has emerged. In this section, we will comprehensively compare 4P and 4C, detailing the shift towards a customer-centered marketing strategy.

Product vs. Customer Value: What is True Value for Customers?

The 4P "Product" refers to the actual goods or services provided by the company. Conversely, the 4C "Customer Value" focuses on the benefits or satisfaction customers derive from the product or service, emphasizing the value for the customer. Customers are not merely looking for products; they are seeking solutions to their problems and experiences the products provide.

Item 4P (Product) 4C (Customer Value) Perspective Company-Centered Customer-Centered Focus Product Features and Functions Value and Benefits the Customer Gains Purpose Selling Products Meeting Customers' Needs

Comparative Example: What Are Products and Services That Provide Customer Value?

For instance, a high-end coffee machine features high-performance extraction capabilities and sophisticated design (4P). However, the true value for customers may lie in enjoying delicious coffee easily and the experience of relaxation (4C).

Price vs. Cost: Minimizing Costs for Customers

The 4P "Price" refers to the sale price of products and services. In contrast, the 4C "Cost" comprehensively captures all costs incurred by customers in purchasing and using the products and services, including not only financial costs but also time, effort, and mental burdens.

Item 4P (Price) 4C (Customer Cost) Perspective Company Profit Customer Burden Focus Price Setting All Burdens the Customer Must Bear (Money, Time, Effort, etc.) Purpose Maximizing Profits Minimizing Customer Burden

Comparative Example: How to Provide Value Beyond Price?

For instance, an e-commerce site may reduce customers' financial burden by providing free shipping services. In addition, by implementing an easy-to-understand product search system and smooth purchasing processes, they also reduce customers' time and mental burdens. These can be seen as considerations for providing value beyond price (Cost).

Place vs. Convenience: Providing Optimal Purchasing Experiences for Customers

The 4P "Place" refers to the distribution channels through which products reach customers. Meanwhile, the 4C "Convenience" emphasizes how easily and comfortably customers can purchase products and services. Whether combining online and offline channels and how to offer optimal purchasing experiences to customers is crucial.

Item 4P (Place) 4C (Convenience) Perspective Method of Providing Products Customer Purchasing Experience Focus Streamlining Distribution Channels Ease of Purchase for Customers Purpose Maximizing Sales Opportunities Enhancing Customer Satisfaction

Comparative Example: Enhancing Convenience by Fusing Online and Offline

For example, an apparel brand may enhance customer convenience by linking its online store with physical stores, allowing customers to pick up online purchases at the store, or enabling them to purchase items tried on in store later online. This can be seen as enhancing convenience through the integration of online and offline.

Promotion vs. Communication: Building Relationships with Customers through Two-Way Dialogue

The 4P "Promotion" refers to all activities aimed at promoting product sales. Meanwhile, the 4C "Communication" emphasizes two-way dialogue between the company and customers. It's crucial to listen to customers' opinions, empathize, and build a relationship rather than merely providing one-sided information.

Item 4P (Promotion) 4C (Communication) Perspective Information Delivery Two-Way Dialogue Focus Sales Promotion Building Relationships with Customers Purpose Increasing Sales Enhancing Customer Loyalty

Comparative Example: Effective Communication Strategies Utilizing Social Media

For example, a cosmetics manufacturer not only shares information about new products on social media but also responds thoughtfully to customer inquiries and opinions, and conducts customer participation campaigns, thereby enhancing engagement with customers. This is an effective communication strategy utilizing social media.

Grasping Customers with 4C Analysis! Practical Steps to Deepen Customer Understanding

To achieve success with 4C Marketing, customer understanding is indispensable. By clarifying customer needs, wants, and challenges, and understanding the true value for customers, effective marketing strategies can be devised. Here, we will explain practical steps for deepening customer understanding in four stages.

Clarifying Customer Needs, Wants, and Challenges

The first step in customer understanding is clarifying customer needs (necessities), wants (desires), and challenges (issues). Needs refer to what customers must have to live, wants are what customers seek as a better state, and challenges are the problems or dissatisfaction customers face. By clarifying these three, we can accurately grasp the current status of customers and lay the foundation for providing optimal value.

Specific Methods to Understand Customer Needs

Various methods can be employed to understand customer needs. Some typical methods include:

Method Description Survey Research Directly asking customers can clarify needs, wants, and challenges. Interview Research Taking the time to speak with a few customers in depth can delve deeper into their needs and challenges. Data Analysis Analyzing data such as website access logs and purchase history can reveal customer behavior patterns and interests. Social Media Analysis Analyzing reviews and posts on social media can help understand customer voices and trends. Customer Observation Directly observing customer behavior can help uncover potential needs and challenges.

Defining Value for Customers

After clarifying customer needs, wants, and challenges, the next step is to define the value for customers. Customer value refers to the total benefits that products and services bring to customers. By providing value beyond price, customer satisfaction can be enhanced. The value for customers includes not only functional value but also emotional and social value. For example, high-quality products offer functional value, a brand image offers emotional value, and products that consider the environment offer social value. Based on customer needs, wants, and challenges, let's clearly define what kind of value can be provided.

Examining Optimal Costs and Convenience for Customers

Once the value for customers is defined, the next step is to examine costs and convenience. Costs refer to the overall financial, time, and psychological costs incurred by customers when purchasing and using products or services. Customers are willing to pay costs that align with the value provided. Therefore, careful pricing is necessary. Moreover, convenience refers to how easily customers can utilize products or services. By enhancing customer convenience regarding purchasing methods, utilization methods, and support systems, customer satisfaction can be improved. Analyze customer behavior patterns to provide optimal convenience, including integration between online and offline.

Designing Effective Communication Methods with Customers

Design effective communication methods with customers. Communication with customers should not be a one-sided information delivery but a two-way dialogue. By utilizing social media and email newsletters to actively communicate with customers and listen to their voices, we can build relationships with customers and enhance customer loyalty. By analyzing customer touchpoints and designing optimal communication methods at each stage, we can establish good relationships with customers and foster long-term relationships. Actively implement measures to enhance customer engagement and deepen bonds with customers.

Understanding Through Examples: In-Depth Explanation of 4C Analysis with Starbucks and Dietitians

To deepen understanding of 4C Marketing, let’s look at specific examples. This time, we will explain the practical application of 4C analysis through the examples of Starbucks and dietitians from different industries.

Starbucks Example: Maximizing Customer Experience Value

Starbucks succeeds not only in providing coffee but also in offering customer experience value known as the "third place" (a place that is neither home nor work). How are the various elements of 4C practiced at Starbucks?

4C Starbucks Example Customer Value: Providing not just high-quality coffee but also a relaxing space, Wi-Fi, and customizable drinks, offering multifaceted value to customers. Cost: Prices are higher compared to competitors, but customers perceive they are paying for a “special experience.” Convenience: Pursuing customer convenience through a large number of stores, mobile ordering, and drive-thrus. Communication: Building good relationships with customers through campaigns utilizing social media, active communications, and community contributions.

Starbucks maximizes customer experience value, establishing a unique position without falling into price competition. It is an excellent example of achieving sustainable growth by establishing a brand image and enhancing customer loyalty.

Dietitian Example: Thoroughly Addressing Customer Health Needs

Dietitians provide personalized meal guidance and nutritional counseling tailored to customers' health needs. How can 4C analysis be utilized in customer-centered service delivery?

4C Dietitian Example Customer Value: Providing personalized nutrition guidance based on customers' health status, lifestyle, and food preferences. Delivering specific value tailored to customer needs for health improvement, dieting, and disease prevention. Cost: Proposing plans that consider not just counseling fees but also food and supplement costs, ensuring minimal burden for customers. Convenience: Offering flexible services like online counseling and home visit services to align with customers' lifestyles. Communication: Building trust through thorough communication with customers, providing continuous support via email and chat.

Dietitians enhance customer satisfaction by providing detailed services that align with each customer's needs. By utilizing 4C analysis, it becomes possible to provide optimal services for customers and build long-term relationships.

Examples from Other Industries: Scope of 4C Analysis

4C analysis can also be utilized in various industries beyond the examples of Starbucks and dietitians. For instance, in e-commerce sites, beauty salons, fitness clubs, and educational institutions, where direct contact with customers occurs, 4C analysis serves as a powerful tool for deepening customer understanding and planning effective marketing strategies.

By analyzing the characteristics of each industry, examining the optimal value, cost, convenience, and communication for customers can help differentiate from competitors and achieve sustainable growth.

How to Formulate Effective Marketing Strategies Based on 4C Analysis

Once customer understanding is deepened through 4C analysis, it's time to formulate specific marketing strategies. By incorporating each element of 4C into strategy, it becomes possible to construct a customer-centered business model and achieve sustainable growth. The steps to formulate effective marketing strategies are as follows.

Selecting Target Customers

First, it is crucial to clearly identify whom you want to provide value to, known as the "selection of target customers." Rather than targeting the entire market, narrowing down to specific customer groups with particular needs or characteristics allows for more effective marketing activities. Consider various factors such as age, gender, occupation, hobbies, lifestyle, and values to determine the customer segments that resonate most with your products or services. Useful methods for selection include market research, customer surveys, and data analysis.

By clearly defining target customers, you can understand their needs and wants more deeply and effectively deploy strategies based on 4C analysis. For example, if targeting younger customers, a communication strategy utilizing social media would be effective. For high-priced products, a strategy emphasizing customer experience value would be crucial.

Formulating Specific Measures Based on 4C

Once target customers are established, formulate specific measures based on the elements of 4C. Consider how to utilize each element to offer maximum value to target customers.

4C Element Specific Measure Examples Customer Value: Providing high-quality products and services, offering personalized customer experiences, and providing solutions focused on solving customer challenges. Cost: Optimizing pricing strategies, implementing discount campaigns, and clarifying cost-effectiveness for customers. Convenience: Opening an online store, developing a mobile app, introducing diverse payment methods, and providing rapid delivery services. Communication: Actively disseminating information using social media, sending email newsletters, enhancing customer support, and holding events.

These measures are merely examples, and it is necessary to consider optimal measures tailored to your business model and target customers. By combining multiple initiatives, synergistic effects can be created, leading to more effective marketing strategies.

Setting KPIs and Measuring Effectiveness

Once the formulated measures are put into action, it is necessary to measure their effectiveness and make improvements. For this, it is important to set specific KPIs (Key Performance Indicators) in advance. Set indicators related to the achievement of your goals, such as website traffic, conversion rates, customer satisfaction, and sales, and regularly measure effectiveness. Analyzing the results of effectiveness measurement allows for discovering improvement points and new challenges, thus optimizing strategies. By consistently applying the PDCA cycle and continuing improvements, more effective marketing strategies can be realized.

Learning from Examples! Successful 4C Marketing Strategies

To deepen understanding of 4C Marketing, let's look at specific successful and failed cases. By learning best practices from successful cases and understanding caution points from failed cases, you can formulate a more effective 4C marketing strategy.

Best Practices from Successful Cases

First, let's introduce successful cases that effectively utilized 4C marketing. From these cases, we can learn how customer-centered marketing strategies lead to success.

Company Customer Value (Customer Value) Cost (Cost) Convenience (Convenience) Communication (Communication) Starbucks High-quality coffee, comfortable space, personalized service Premium pricing but reasonably priced for the value Broad store network, mobile ordering, drive-thru Proposals for customization, customer loyalty programs, active information dissemination on SNS Netflix Unlimited viewing of diverse genres of movies and dramas and personalized recommendations Monthly subscription with high cost-performance Can be viewed anytime, anywhere with an internet connection Utilization of information on SNS and user reviews Amazon Extensive product lineup, low prices, and rapid delivery More low-priced products compared to competitors One-click purchasing available with diverse delivery options Personalized recommendations, customer reviews, and rapid customer support

These companies accurately capture customer needs and optimize each element of 4C, enhancing customer satisfaction and establishing competitive advantages in the market. In particular, Starbucks focuses on maximizing customer experience value, which has resulted in high brand loyalty.

Caution Points from Failed Cases

Next, let's clarify common failure examples in 4C marketing strategies and their caution points. By learning from failures, we can avoid similar mistakes and create more effective strategies.

Failure Example Caution Point Misunderstanding Customer Value Failing to understand true customer needs and defining value from the company's perspective. It's crucial to thoroughly conduct customer research and offer the value customers genuinely seek. Lack of Communication Remaining focused on one-sided information delivery, lacking two-way communication with customers. It's important to utilize social media and customer surveys to listen to customer opinions. Overlooking Convenience Overlooking the purchasing process or service utilization convenience for customers. Providing optimal purchasing experiences for customers from both online and offline perspectives is essential.

Since 4C marketing is customer-centered, understanding customers is indispensable. By deeply understanding customer needs and strategically utilizing each element of 4C, sustainable growth can be achieved.

Pitfalls of 4C Analysis and Keys to Success

While 4C analysis is a powerful tool for implementing customer-centered marketing, it won't be effective if not properly utilized. Here, let's discuss common pitfalls in conducting 4C analysis, their countermeasures, and keys to success.

Common Pitfalls and Countermeasures

The common pitfalls in 4C analysis are as follows:

Pitfalls Countermeasures Lack of Customer Understanding If analysis is progressed without deeply understanding customer needs and wants, there is a risk of planning irrelevant measures. It is important to conduct customer interviews and surveys to grasp the true needs of customers. Lack of Balance Between 4Cs Since the 4Cs are closely related, balance is vital. If too much focus is placed on enhancing customer value, costs may become excessively high, or if convenience is pursued excessively, it may result in a lack of communication, which would not be considered an effective marketing strategy. It is essential to always be mindful of balancing the 4Cs throughout the analysis process. Lack of Implementation of Analysis Results Unless specific measures based on analysis results are implemented, there is no point in conducting 4C analysis. It is critical to plan actionable specific measures based on the analysis results and continually improve through the PDCA cycle.

Key to Success: Rigorously Following Customer-Centric Principles

The key to successfully executing 4C analysis is to rigorously adhere to customer-centric principles. By constantly thinking from the customer's viewpoint and focusing on maximizing the value for customers, effective marketing strategies can be formulated.

To rigorously follow customer-centric principles, the following three points are essential:

• Listen to Customer Voices: Collect customer voices through customer interviews, surveys, and social media to grasp true needs.

• Emphasize Customer Experiences: Strive to offer the best customer experience at all touchpoints where customers interact with products or services. Paying attention to details such as website usability and customer support quality is important.

• Conduct Continuous Improvements: Since customer needs are constantly changing, it's not enough to analyze once; regular analyses and improvements are necessary. It is crucial to monitor changes in the market and customer feedback and adapt strategies flexibly.

By rigorously following customer-centric principles, benefits such as enhanced customer loyalty, increased sales, and improved brand image can be achieved. Effectively utilizing 4C analysis will facilitate the realization of customer-centered business.

Distinguishing Yourself from Competitors through 4C Analysis!

In today's business environment, differentiating from competitors is essential. By utilizing 4C analysis, it is possible to provide unique value from a customer perspective and build competitive advantages. Here, we discuss competitive analysis and differentiation strategies, as well as creating unique customer value.

Competitive Analysis and Differentiation Strategies

To effectively utilize 4C analysis, it is important to analyze what customer value competitors provide and what costs, conveniences, and communication strategies they have. Based on this, it is necessary to clearly define how to differentiate from competitors.

Elements Points for Competitive Analysis Points for Differentiation Strategy Customer Value: What customer value is provided by competitors? What aspects are customers satisfied with regarding competitors? What are the strengths and weaknesses of competitors' customer value? What customer value is not offered by competitors? What new value meets potential customer needs? What unique customer value can be leveraged from your company's strengths? Cost: How is the pricing structure of competitors? Are customers satisfied with competitors' costs? What are the strengths and weaknesses regarding competitors' costs? How can value be provided without falling into price competition? What is the optimal cost for customers? What measures can enhance cost performance? Convenience: How is the convenience provided by competitors? Are customers satisfied with competitors' convenience? What are the strengths and weaknesses regarding competitors' conveniences? How can superior convenience be provided compared to competitors? What defines the optimal purchasing experience for customers? What measures can enhance convenience by integrating online and offline? Communication: What communication strategies are competitors employing? Are customers satisfied with competitors' communication? What are the strengths and weaknesses of competitors' communication? How can distinct communication methods be employed to connect with customers? What communication strategies can build long-term relationships with customers? How can social media and digital marketing be effectively utilized?

Creating Unique Customer Value

Based on competitive analysis, it is vital to create unique customer value. Customers do not only choose products and services based on price, but rather, they assess the overall experience brought about by products and services. By providing genuinely valuable experiences for customers, sustainable growth can be achieved without getting caught in price competition. To achieve this, it is crucial to deeply understand customer needs and design products, services, and all touchpoints from the customer's perspective.

For example, the following unique customer values can be created:

• Providing high-quality products and services

• Offering personalized customer experiences

• Providing prompt and detailed customer support

• Delivering innovative technologies and ideas

• Engaging in social contribution activities

By providing these unique customer values, customer loyalty can be enhanced, and a strong brand that does not fall behind competitors can be built.

Realizing Sustainable Growth with 4C Marketing

4C Marketing serves as a powerful tool not only for temporary sales increases but also for achieving sustainable growth. By maintaining a customer-centered perspective, it becomes possible to enhance customer loyalty and establish long-term relationships. Customer loyalty and long-term relationship building are indispensable elements for sustainable growth in business. This section will explain how to realize sustainable growth through 4C Marketing.

Enhancing Customer Loyalty

Customer loyalty refers to the degree of affection and trust that customers hold towards specific brands or companies. Customers with high loyalty not only make repeat purchases but also contribute significantly to business growth by spreading the word about products and services. How can the elements of 4C be effectively utilized to enhance customer loyalty? Here are some specific measures:

4C Element Examples of Measures to Enhance Customer Loyalty Customer Value: Deeply understand customer needs and provide value that exceeds expectations. Offer personalized services and special benefits to improve customer satisfaction. Cost: Set optimal pricing for customers. While providing value that matches the price, implementing point systems or discount campaigns enhances a customer’s appeal. Convenience: Ensure customers can easily utilize products and services. Implement measures to improve customer convenience, such as enhancing online store usability, rapid delivery, and comprehensive customer support. Communication: Actively engage in two-way communication with customers. Utilize social media and email newsletters to listen to customer voices and grasp needs. Building good relationships with customers enhances loyalty.

Building Long-Term Relationships

Building long-term relationships with customers is critical to achieving sustainable growth. Rather than seeking a one-time transaction, establishing a continuous good relationship with customers allows for a stable revenue base. 4C Marketing serves as a guideline for building long-term relationships with customers.

To build long-term relationships, establishing trust with customers is essential. Through measures that enhance customer engagement, it is important to create and maintain good relationships with customers. Specific measures that can be effective include:

• Increasing touchpoints with customers: Conduct regular email newsletter dispatches and actively engage in information dissemination on social media to maintain continuous communication with customers.

• Gathering customer feedback: Actively collect customer voices through survey research and reviews, using them to improve products and services.

• Creating communities: By providing a forum for customers to interact, deepen their attachment to the brand.

• Providing personalized experiences: Analyze customer purchase history and behavior data to offer the best-tailored information and services to individual customers.

Through these measures, deepening trust with customers and establishing long-term relationships can lead to sustainable growth.

Conclusion: Realizing Customer-Centered Business with 4C Marketing

This article has elaborated on the concept of 4C, a customer-centered marketing strategy, its differences from 4P, and practical steps for implementation. Transitioning from traditional product-centered 4P marketing to customer-centered 4C marketing is essential in modern business.

By deeply understanding customer needs through the four Cs of Customer Value, Cost, Convenience, and Communication, and providing corresponding products and services, it becomes feasible to achieve true customer satisfaction and link it to sustainable business growth.

By understanding practical applications of 4C analysis through concrete examples like Starbucks and dietitians, and applying this to your business, you can enhance customer loyalty, establish long-term relationships, and differentiate from competitors. Considering the pitfalls and keys to success in 4C analysis, it is important to rigorously adhere to customer-centric principles to formulate more effective marketing strategies.

To realize customer-centered business and establish a competitive advantage in the market, 4C Marketing will serve as a powerful tool. Utilize the knowledge gained from this article to build business strategies that incorporate customer perspectives.

Cascade is a platform that supports the planning, execution, and measurement of marketing strategies. By deepening understanding of customers and making data-driven decisions, accelerate the success of your business. We encourage you to take advantage of Cascade during this opportunity.