Why Lauterborn Change Marketing Mix?

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According to Philip Kotler, Marketing Mix still a king in the internet era. Now, it is challenged.

The McCarthy marketing mix is so popular. Many marketing study or economic management teach the marketing mix to their students.

In 1990, it is time that internet begin, Bob Lauterbon show the problem of marketing mix and give solution.

We will tell you points that Lauterborn said about marketing mix. Today marketing world is different. The marketing mix is not enough to face it.

Bob Lauterborn admit that marketing mix of Jerome McCarthy and Philip Kotler is great ideas. After World War II, production system increase and ready to provide to the customer. It is a big production that needs to sell to the big market. Then marketing mix give actionable framework to sell the mass product. McCarthy tells about internal organization factor of marketing in memorable phrase and acronym, marketing mix 4P. It is Product, Price, Place, and Promotion. In Lauterborn term,

Roaring out of World War II with a cranked-up production system ready to feed a lust for better living, American business linked management science to the art of mass marketing and rocketed to the moon.

Marketing mix using mass media to promote then taught cunsumptive culture.

The Problem of 4P Marketing Mix

But, then the domination of mass media is over. Domination of the internet begin since about 2000 and create a new market character. Desperately, some marketers still try to make the formula work. The industry still creates 12,000 new products across the shelves in a single year. But there are 20% market accepts and sustainable. Majority of products are failing.

The workflow of business is like this. Producer create products, give a price, deliver on shop or retail and promote it to customer. They didnt consider whether customers are easy or difficult to accept. When products are difficult to accept, then persuasion in advertising or promotion has a job.

But, market refuse so much new products. What is wrong?

Bob Lauterbord said, You can’t sell whatever you can make any more. It is time to learn what market need, want and expectation first, then create products that suit.

Customer Value

Forget Products, study customer needs and want. Feeding Frenzy is over. The feeding frenzy is game about fish that eat whatever small fish that in the front of them. The market is not a feeding frenzy that eats everything. The market is more selective to accept feeding. You can’t sell whatever you can make any more. You can only sell what someone specifically wants to buy.

The customer value is something that avoid customer hassle and something that make them happy.

Cost

Forget price. Understand the constunefs cost to satisfy that want or need. price is not the only component of customer cost. Customer cost include: risk, guilt, durability, time and space to buy and use. Price is only one between many component of cost for customer.

Convenience to buy

Forget place, thin convenience to buy. Place is not absolute necessary. In the era of internet, if people get value without go to somewhere, that is better.

Communication


Forget promotion, it is communication. Communication is a dialog, and promotion is monolog. Promotion is manipulative. Oh no, not always, but promotion is one way or not interactive communication. Two-way communication provides feedback from the customer to the producer.

In bridge message, Bob Lauterborn said, product, price, place and promotion are over. Consumer wants and needs, cost to satisfy, convenience to buy and communication are the catechism for our times.

What are different? The different are 4C of Lauterborn emphasis on customer perspective. While 4 P of Jerome McCarthy emphasis on seller perspective. To persuade customer, it is important to understand their perspective.

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