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The 4A's of Marketing

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Emmanuel Joseph Sumatra

on 16 October 2013

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Transcript of The 4A's of Marketing

The 4A's of Marketing
Marketing Remix
Managing Acceptability
Managing Affordability
Managing Accessibility
Managing Awareness
Benefits of Using the Framework
a.) Enabling Customer Centricity
Instead of answering how, where and when products can be sold, the framework simply focuses on the why products are desired and the factors can impede their success.
By focusing on customers in a clear and direct way, the framework facilities create profitable long-term relationships.
Benefits of Using the Framework
b.) Improving Marketing Productivity
and Effective Resource Allocation
The 4A’s enable managers to take a focused look at the strengths and weaknesses of marketing programs and base their allocation on clear objectives rather than intuition.
The framework helps managers and other business sector allocate resources to the marketing program’s weakest section.
Benefits of Using the Framework
c.) Holistic View in Business
A key strength of the 4A framework is its ability to encompass every aspect of the firm in service of its marketing objectives.
This approach views the holistic view or system in which marketing is not solely responsible for satisfying customers.

The Four Roles of Customers
• The seeker role is primarily associated
with the Awareness of the offering.
• The user role is primarily associated
with the Acceptability of the offering.
• The payer role is primarily associated
with the Affordability of the offering.
• The buyer role is primarily associated
with the Accessibility of the offering.

The 4A’s of Marketing: Definitions
1. Awareness – The extent to which customers are informed regarding a product’s characteristics, are persuaded to try it, and are reminded to repurchase it. It has two dimensions:
• Product Knowledge – indicated by factors such as interest, understanding, involvement, relevance
• Brand Awareness – indicated by factors such as brand recall, brand associations, perceive brand characteristics, brand attraction

The 4A’s of Marketing: Definitions
2. Acceptability – The extent to which the firm’s total product offering meets and exceeds the needs and expectations of customers in the target market. It has two dimensions:
• Functional Acceptability – indicated by factors such as core attributes and capabilities, functionality, ease of use, quality, and reliability
• Psychological Acceptability – indicated by factors such as brand image, styling, social value, emotional value, perceived risk

The 4A’s of Marketing: Definitions
3. Affordability – The extent to which customers in the target market are economically and psychologically willing to pay the product’s price. It has two dimensions:
• Economic Affordability – the ability to pay, indicated by factors such as income, time and effort required, assets, financing, fit within the budget
• Psychological Affordability – the willingness to pay, indicated by factors such as perceived value for money, perceived fairness, price relative to alternatives

The 4A’s of Marketing: Definitions
4. Accessibility – The extent to which customers are able to readily acquire and use the product. It has two dimensions:
• Availability – indicated by factors such as supply relative to demand, the degree to which the product is kept in-stock, related products and services
• Convenience – indicated by factors such as the time and effort required to acquire the product, the ease with which the product can be found within and across locations, packaging in convenient sizes

The 4A’s of Marketing: Definitions
3. Affordability – The extent to which customers in the target market are economically and psychologically willing to pay the product’s price. It has two dimensions:
• Economic Affordability – the ability to pay, indicated by factors such as income, time and effort required, assets, financing, fit within the budget
• Psychological Affordability – the willingness to pay, indicated by factors such as perceived value for money, perceived fairness, price relative to alternatives
Key Elements
Total Offering: For an offering to be truly acceptable, it must offer more than the product. Many intangible factors, such as service and installation, determine whether the product is truly acceptable.
Meets and exceeds customer needs and expectations: Crafting a highly acceptable market offering begins, but does not end, with surpassing the customer’s expectations. This requires that companies, before they develop their offering, have a deep understanding of their customers and that they thoroughly test before the launch.
The two dimensions – functional and psychological acceptability – can also be thought of as “performance” and “personality”.
To achieve very high levels of overall Acceptability, the product must perform and it must be personable. However, customers may trade-off between functional and psychological acceptability, especially for products that are relatively low in price.
A high level of acceptability is reflected in a customer comments such as:
This product fills a need better than any other product.
This product is quite distinct from others in its category.
After I saw this product’s advertising, I wanted to buy it right away.
This product changes the way I feel about the activity for which it’s intended
Key Acceptability Principles
A product with excellent features may speak to itself, but to succeed, it first must speak to the customer. All too often, marketers fall in love with their products and lose focus of what customers really want- a problem that Harvard Business School professor Theodore Levitt called “marketing myopia”. In striving to build “a better mousetrap”, marketers fail to attract the mouse.

For a transaction to be desirable from both the seller’s and the buyer’s perspective, both the ability and the willingness to pay must be high.
The idea of “Affordability” stresses what the customer is willing and able to pay, rather than what the company is able to set as the highest price. It is based on value rather than cost.

Creating Affordability
Basic approaches that companies should consider to improve affordability overall:
1. Make the product worth more in the customer’s mind through functional improvements such as adding desirable features or improving quality.
2. Make the product worth more in the customer’s mind through psychological factors such as improving its image or lowering risk.
3. Lower the effective price (i.e. everything the customer has to give to get the product) to the customer by reducing the time or effort required to purchase and use the product.
Creating Affordability
4. Break through psychological price barriers by changing the product’s size or form factor. As Unilever and others did in developing markets by creating single-use sachets of their products.
5. Devise a creative pricing mechanism that better links price to value and removes upfront barriers to purchasing.
6. Create product variations to meet the expectations of those customers with less ability and willingness to pay. For example, Apple has created the Mac Mini and iPod Shuffle to appeal to customers who cannot afford its standard offerings.
Creating Affordability
7. Use performance- based pricing. This is a clever approach that aligns Acceptability and Affordability. In performance-based pricing, the seller is paid based on the actual performance of its products or service
8. Make products more affordable by removing the many hidden cross- subsidies across products, customers, markets, and channels.

The notion behind Accessibility is really very simple: ensure your product or service “meets up” with the customer, at the time and place of the customer’s choosing. The customer should be able to obtain the product or service with the most minimal amount of effort.
Improving Availability
Companies need to run lean distribution systems that deliver products when and where they’re needed, without requiring large amounts of inventory. And that requires up-to-the-minute sales data. The more a company knows about what is selling where, the better it can meet demand without loading up on inventory.
Improving Customer Convenience
Create convenience in acquiring and disposing as well as using the product: Products must be easy to unpack, not require time-consuming and complicated assembly by customers and be designed for easy and intuitive use. At the end of the life cycle, the product should be easy to dispose of.
Reduce transaction costs by offering customers a broader range of offerings under one roof: By creating a “one stop shopping” experience where customers can get a variety of related products and services, companies can save customers considerable time and expense, as well as spread their own costs across a broader range of offerings.
Improving Customer Convenience
Reduce the time that customers expend in monitoring and managing their needs: In our increasingly complex lives, the “cost of thinking” keeps increasing.
Provide any time, any place, “any mode” access: This should include online access, home delivery, and customer premise services.
The Internet’s Impact on Accessibility
For many products, the Internet has provided a great boost to Accessibility; even if a physical outlet is not conveniently available, consumers can still access the product. For online retailing, Accessibility includes the website’s usability and aesthetics –that is, the ease and pleasure with which the customer can navigate, research, and purchase the product online.
Customers must be able to recognize and remember the brand, its key features and its overall “positioning”—that is, what it stands for. However, these minimal requirements, by themselves, are not enough to entice customers and more importantly, keep them satisfied after the purchase. Customers must know the product as well as the brand.
Deep Awareness: Customers actively seek out reviews and educational; sources of information about the product because they are highly interested in the product category.
Shallow awareness: Customer’s passively acquire brand awareness and product knowledge largely through advertising.

Improving Brand Awareness
The three commonly used measures of brand awareness are “top of mind”, “spontaneous (or unaided) recall;” and “aided recall”.
In seeking to increase brand awareness, companies should reduce their traditional emphasis on television advertising, which is losing effectiveness due to the growth of the internet and social media and is also very expensive. Companies should strive to use all customer touch points to increase brand awareness.

The Internet and Awareness
The internet can have a great impact on both dimensions of awareness. It can help a company create brand awareness through carefully placed messages that are delivered to the right customers. The internet can serve as a visually limitless source of deep product knowledge, especially via a company’s own website as well as though third party sources.
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