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SIVA: Solution, Incentive Information, Value, and Access

SIVA: Solution, Incentive/Information, Value, and Access

Customer-focused marketing is known as SIVA which provides a demand-centric alternative to the four P’s supply side of marketing management.

LEARNING OBJECTIVES

Reconstruct the “Four Ps” supply side model (product, price, placement and promotion ) to create “SIVA” (solution, information/incentives, value and access), a customer centric alternative

KEY TAKEAWAYS

Key Points

  • The product is no longer a one-size fits all offering, but rather a solution created to solve a problem for the customer.
  • Information can include advertising, public relations, personal selling, viral advertising, and any form of communication between the firm and the consumer. The “I” also stands for “Incentives,” such as trade promotions.
  • Value can be defined as the extent to which goods or services are perceived by customers to to meet their needs or wants.
  • Access takes into account the ease of buying the product, finding the product, finding information about the product, and several other factors.

Key Terms

  • Opportunity cost: The cost of an opportunity forgone (and the loss of the benefits that could be received from that opportunity); the most valuable forgone alternative
  • viral advertising: a marketing technique that uses social networks and other technologies to produce increases in brand awareness or sales. It can be delivered by word of mouth or enhanced by the network effects of Internet and mobile networks. Viral marketing may take the form of video clips, interactive games, ebooks, images, text messages, email or web pages.

SIVA is a formal approach to customer-focused marketing. It stands for Solution, Information, Value, and Access. This system is basically the four Ps renamed and reworded to provide a customer focus. The SIVA Model provides a demand and customer-centric alternative to the well-known four Ps supply side model (product, price, placement, promotion) of marketing management.

guitars on the wall of a store

SIVA Customer-Focused Approach: Guitars are not a 1 size suits all product. Guitar companies must be aware of what their customers need and want.

Solution → Product The “Product” in the four Ps model is replaced by “Solution” in order to shift focus to satisfying the consumer needs. The product is no longer a one-size fits all offering, but rather a solution created to solve a problem for the customer. The customer-centric focus allows customers to feel cared for because they are offered a custom solution.

Information/Incentives → Promotion The “Promotion” in the four Ps model is replaced by “Information,” which represents a broader focus. Information can include advertising, public relations, personal selling, viral advertising, and any form of communication between the firm and the consumer. The “I” also stands for “Incentives,” such as trade promotions. A trade promotion is a marketing technique aimed at increasing demand for products based on special pricing, display fixtures, demonstrations, value-added bonuses, no-obligation gifts, et cetera.

Value → Price The “Price” in the four Ps model is replaced by “Value,” reflecting the total value gained through purchasing the product. Value can be defined as the extent to which goods or services are perceived by customers to to meet their needs or wants. It refers to the benefits a buyer receives when their needs are met. Value is measured in terms of a customer’s willingness to pay for a product, and often depends more upon the customer’s perception of a product’s worth rather than its intrinsic value. These perceptions can be in regard to tangible and intangible benefits that a product offers. Many factors affect value, including the customer’s cost to change or implement the new product or service and the customer’s cost for not selecting a competitor ‘s product or service. Cost in these cases can be defined in any terms applicable to the customer: it can be a monetary, time, effort, opportunity cost, or some combination of those.

Access → Place (Distribution) The “Place” in the four Ps model is replaced by “Access. ” With the rise of the Internet and hybrid models of purchasing, geography is becoming less relevant. Access takes into account the ease of buying the product, finding the product, finding information about the product, and several other factors. Access also refers to the channels of distribution associated with a product. Distribution channels move products and services from businesses to consumers and to other businesses. These channels typically are composed of a set of interdependent organizations, such as wholesalers, retailers, and sales agents.