Professor Koichi Shimizu's
4Ps and 4Cs
7Ps to Professor Shimizu's 7Cs
|Framework of 7Cs Compass Model
1. Corporation and competitor
The core of 4Cs is corporation while the core of 4Ps is customer - they are the targets for the actions of the attack or defense. 4Ps look like customer-oriented however in reality, the decisions are made by the companies or corporations. Therefore the marketing activities of a company should be encircled by the consumers or citizens as the demanders to make the requests.
To avoid the misunderstanding, it is necessary to clarify the relationship between the consumers and the company, Just looking at the 7Cs compass, it may be misunderstood that the customers become less important because the "Customer" of the 4Ps core is moved to the outer chord and replaced by the "Company". In fact, the meaning to do it is just opposite - the consumers or customers play more important role. To arrange them on the figure like this is due to three reasons: 1) the company is encircled by the customers; 2) the company is the center to execute the marketing activities; 3) the company is encircled by the consumers instead of just the customers.
In the market, there are the companies of the same business, the competitors. Their activities cannot be ignored and they are also functioning as the individual systems of 7Cs compass so that the core can be seen as multiple.
Why "Company" is put in the scope of 7Cs? The reasons are: 1) It is necessary to place more emphases on the organization of the companies; 2) It is necessary to execute marketing plans in conjunction with the company's objectives; 3) It is necessary to tackle the internal communication related problems like corporate communication or corporate identity system(CIS), etc.
Consumers are those people encircling the companies. Instead of just the customers of 4P marketing model, they are the ordinary citizens nurtured by the motto of the consumerism. However of course they are also including the customers and the potential customers.
We can then divide the consumers into two categories. The first one is the perspective customers and the second one is the other citizens who have the social relationships with the companies. The people of first category were the target of the marketing activities in the era of the high-growth economics. It is out of questions that in the era of consumerism, they still need to be explored to increase the market share. One the other hand, the companies now can not omit the people of second category even there is not sell and buy relationship with them. For example, the companies produce noises and trashes in the process of the production, which lead to the social problem. Since the word "Consumerism" was introduced from 1960s, the companies so far still sometimes ignore their benefits.
The factors related to the customers can be explained by the first characters of four directions marked on the compass: N = Needs, W = Wants, S = Security and E = Education.
a. Needs - analyze what the consumer needs. Needs is the unsubstantiated opinion, some of which cannot be converted to the concrete commodities. Companies can offer more alternatives to meet the various needs of the consumers;
b. Wants - the substantiated needs to expect the accordingly commodities. The companies need to place more emphasis on the biggest needs and not to omit the noiseless needs;
c. Security - the safety of the commodities, the safety of the production process and the adequate after-sell warranty;
d. Education EconsumersEright to know the information of the commodities;
Besides the customers, there are also various uncontrollable external environmental factors encircling the companies. The same as the factors of the consumers, they can also be explained the first character of the four directions marked on the compass - N = National and International,W=Weather, S = Social and Cultural, E = Economic.
a. National and International Circumstances
The National Circumstances are related to politic and law. Once an election finished, the combination of the politicians in the parliament may be changed and they may implement different policies. The most influential to the marketing decisions is economic policies, which directly related to the economic growth. There are also a dozen of laws to protect the consumers namely Consumer Contract Act, Consumer Protection Fundamental Act and Product Liability Act. The companies have no other choices but to follow these laws or they will face the endless lawsuits.
International environment now also becomes important. In the very near future, no one single country can form an independent society. It is a must to establish the international cooperation mechanism for solving the problems like international law, energy, military and trade etc.
Despite the advance of the human technology, the weather and natural environment is still uncontrollable. For most of the natural disasters, the companies can do little but try to predict when they will happen and adjust the marketing plans. However more can be done to avoid the disasters caused by human like the environment pollution.
c. Social and Cultural Circumstances
Social Circumstance is related to the social system and problems of a nation. When exploring a new oversea market, it is essential to study the social circumstances of that nation. Moreover marketing analysis should include following human cultural factors:
1) basic values and attitudes
3) learning capacity and achievement orientation
4) technical know-how
5) social discipline
6) sense of responsibility for the common good and the community
7) capacity for flexible adaptation to a changing environment
d. Economic Circumstances
Economic Circumstances is closely related to National Circumstances we have discussed before however economics climate is changing due to many other uncontrollable factors like energy, resources, international income and expense, financial circumstances and economic growth etc. For example, the whole organization structure for marketing needs to be adjusted from 4Ps to 4Cs or 7Cs model when the economics is changed from high-growth to low-growth.
|SourceFKoichi Shimizu (2009) "Advertising Theory and Strategies,"16th
edition, Souseisha Book Company. (Japanese)
Koichi Shimizu (2003)"Symbiotic Marketing Strategy,"4th edition, Souseisha Book Company.
Professor Koichi Shimizu: Josai University Graduate School of Business Administration,
Department of Business Administration (Japan)
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