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What is SIVA Model of Marketing?
What is SIVA Marketing Model?
The existence of any business is essentially justified by its customers. Customers can be consumers who buy goods and/or services or business-to-business clients. In a market economy, a business thrives by creating products and providing services that consumers are eager to pay for. Therefore, determining customer demand is essential for a company's future profitability.
Nowadays, a lot of businesses are customer-focused (or market orientation). This suggests that the business bases its operations and product development on consumer needs. Companies are better equipped to meet their demands when they adopt a customer-oriented mindset and put the needs of the client first. Such a client-centered strategy is the foundation of the SIVA model.
Any customer-focused firm must always consider the customer's perspective. S.I.V.A. is a structured strategy for this customer-focused marketing (Solution, Information, Value, Access). This method effectively renames and rewords the four Ps to put the client first.
How the 4 Ps in Marketing Replaced into SIVA?
The traditional marketing mix is known as the Four Ps of Marketing: product, price, place, and promotion. It was first used in 1960, and as time went on, marketers added other Ps, such as packaging, people, and so on. The key was to utilize them as a planning tool to ensure that the products were developed successfully and that the market had the appropriate positioning and offerings. The 4 Ps of Marketing may not be as relevant now as they once were given how marketing has changed.
The 4 Ps of Marketing were first presented in 1960, therefore it's difficult to imagine how much the world has changed since then. It was a push economy at the time. Manufacturers created products, introduced them to the market, and instructed customers on what to buy. That approach has changed in the digital era. Customers have the power, and they communicate their preferences to businesses and when and where they want it. Both B2C and B2B can attest to this.
The trend changed from the 4 Ps of marketing to the 4 Cs as a result. Later, in 2005, Chekitan Dev and Don Schultz unveiled the intriguing SIVA model. These are: Solutions, Information, Value, and Access. SIVA more closely represents the market's current demand for customer focused strategies.
The well-known four Ps marketing mix model (product, pricing, placement, and promotion) of marketing management is replaced with the demand/customer centric S.I.V.A. Model. The concept behind it is to repeat the four Ps in a way that corresponds to the marketing landscape of today, where communities now have more influence over brand formation than businesses do.
Based on this model −
Product becomes Solution.
Promotion becomes Information.
Price becomes Value.
Place becomes Access.
Product Becomes Solution
What is being supplied in this situation is driven by customer requirements. Instead of the company, the community defines the product. It is the responsibility of marketing to ascertain what customers want and convey this information to businesses so that they may create goods that meet their demands.
Offering a solution that satisfies your customer's demands means that you are doing more than just selling a product. Services perform this daily.
Promotion Becomes Information
Give consumers the knowledge they require to assess if the given goods or services are both valuable and affordable to them, rather than posting advertisements. Numerous services have traditionally run on this principle. Customers schedule a "fact-finding" visit to learn more about the service (provided, for instance, by a doctor or lawyer) and its cost. They decide on whether or not to become patients or clients based on this information.
Price Become Value
S.I.V.A. encourages pricing goods and services based on the value they provide to customers as opposed to utilizing economic theories to do so. Since services are intangible goods that cannot be valued solely on the input of raw materials, the price of services is frequently established in this way.
Place Become Access
Giving consumers access to goods and services when and where they want it rather than imposing location requirements is the whole point of this. Even beauticians are happy to do your hair at home these days. Instead of forcing you to visit their office, other service providers offer information and services online.
Application of the SIVA Model
The SIVA model is proved to be a beneficial tool when working with our customers on their brand strategy and marketing plans. It's crucial to be always available to consumers and to accommodate their needs. Whether trying to establish the brand position, developing an ecommerce site, or creating an elevator pitch, the SIVA model aids in offering the discipline and structure to achieve that. It serves as a reminder that the purpose of marketing is to identify, convert, and retain consumers, and that one should never stop looking for new ways to interact with them.
This does not imply that the 4 Ps must be completely abandoned. Even with all that consumer attention, they are nevertheless helpful for internal management since maintaining a profitable organization requires disciplined management.
Ask your team and yourself, "What solution are we truly delivering?" before describing your services or products to consumers. A business that offers foam balls for cleaning equipment used in the construction industry, such as boom pipes used to pour concrete. Customers don't really care that this business sells foam balls. They are concerned with avoiding downtime brought on by pipes filled with dry concrete. It's the emphasis change that really makes a difference.
The same customers search for value, or which product will serve their needs best and at what cost. In reality, people discuss it in online forums where they exchange knowledge and look for instruction. They will be more receptive to businesses who provide them with Solutions, Information, Value, and Access (typically in the form of education).
Consumer desires serve as the basis for all strategic marketing choices in the consumer driven strategy. Before a plan is adopted, it must first pass the consumer research test. The demands of potential customers influence every aspect of a market offering, including the form of the product itself. The consumer is always the place to begin.
This strategy is justified by the idea that there is no use in investing money in R&D into goods that no one would buy. Many items in history have been commercial flops while having a technological success.
To conclude, SIVA can be summarized as below −
This method essentially renames and rewords the four Ps to put the customer first.
The product now addresses a specific need for the customer rather than being a one-size-fits-all offering.
Advertising, public relations, personal selling, viral marketing, and any other type of contact between a company and its customers can all be considered information. The letter "I" may also stand for "Incentives," like marketing campaigns.
S.I.V.A. promotes providing customers with the knowledge they need to assess if the provided goods or services are both worthwhile and affordable to them.
Value may be described as the degree to which customers believe that a product or service meets their requirements or wants.
S.I.V.A. promotes pricing goods and services based on the value they provide to customers rather than employing economic theories to do it.
Access considers a number of aspects, including how simple it is to locate a product, buy it, and access information about it.
Using the S.I.V.A. model, customers may obtain goods and services whenever and wherever they choose, as opposed to following corporate dictates.
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