From 4P's to 4C's of marketing
The Four Ps is being replaced by the Four Cs model, consisting of consumer, cost, convenience, and communication.
The Four Cs model is more consumer-oriented and fits better in the movement from mass marketing to niche marketing.
The product part of the Four Ps model is replaced by consumer or consumer models, shifting the focus to satisfying the consumer.
Product is replaced by Customer: You have to study consumer wants and needs and then attract consumers one by one with something each one wants.It is to create a custom solution rather than pigeon-holing a customer into a product.
Pricing is replaced by cost, reflecting the reality of the total cost of ownership. Many factors affect cost, including but not limited to the customers cost to change or implement the new product or service and the customers cost for not selecting a competitors capability. You have to realize that price - measured in dollars - is one part of the cost to satisfy. If you sell hamburgers, for example, you have to consider the cost of driving to your restaurant, the cost of conscience of eating meat, etc.
Place is replaced by the convenience function. With the rise of internet and hybrid models of purchasing, place is no longer relevant. Convenience takes into account the ease to buy a product, find a product, find information about a product, and several other considerations. You have to know how each subset of the market prefers to buy - on the Internet, from a catalogue, on the phone, using credit cards, etc. Lands End clothing, Amazon Books and Dell Computers are just a few businesses who do very well over the Internet.
Promotions feature is replaced by communication. Communications represents a broader focus than simply promotions. Communications can include advertising, public relations, personal selling, viral advertising, and any form of communication between the firm and the consumer. Be creative and you can make any advertising "interactive". Use phone numbers, your web site address, etc. to help here. And listen to your customers when they are "with" you.