What is SIVA – The New 4 P’s of Marketing

A firm in the market economy survives by producing goods and offering services that people are willing and able to buy. Consequently, ascertaining consumer demand is vital for a firm’s future viability and profits.

Many companies today have a customer focus (or market orientation). This implies that the company focuses its activities and products on consumer demands. This is also known as S.I.V.A., or Solution, Information, Value, and Access. Generally, there are three ways of doing this:

• the customer-driven approach;
• the market change identification approach; and
• the product innovation approach.

“Consequently, ascertaining consumer demand is vital for a firm’s future viability and profits.” 

The Consumer-Driven Approach

In the consumer-driven approach, consumer wants are the drivers of all strategic marketing decisions. No strategy is pursued until it passes the test of consumer research. Every aspect of a market offering, including the nature of the product itself, is driven by the needs of potential consumers. The starting point is always the consumer.

The rationale for this approach is that there is no reason to spend R&D funds developing products that people will not buy. History attests to many products that were commercial failures in spite of being technological breakthroughs.

A formal approach to this customer-focused marketing is known as S.I.V.A (Solution, Information, Value, Access). This system is basically the four Ps renamed and reworded to provide a customer focus.

The SIVA Model

The S.I.V.A. Model provides a demand/customer-centric alternative to the well-known four Ps marketing mix model (product, price, placement, promotion) of marketing management. The idea behind it is to restate the four P’s in a way that reflects today’s marketing environment where the power of building brands has shifted from corporations to communities.

Based on this model:

• Product→Solution;
• Promotion→Information;
• Price→Value; and
• Place (Distribution)→Access.

Product Becomes Solution

Here, what is being sold is driven by what the consumer needs. The community defines the product instead of the corporation. It is marketing’s duty to understand what the consumer wants and explain this to the corporations so that they, in turn, can produce the products that satisfy the needs of the consumer. You aren’t simply providing a product, you are offering a solution that meets your customer’s needs. This is what services do on a daily basis.

Promotion Becomes Information

Instead of placing ads, simply give the consumers the information they need to determine whether or not the product or services offered is both valuable and accessible to them. Many services have always operated on this basis. Customers go for a “fact finding” appointment where they learn about the service offered (by a doctor or lawyer, for example) and its price. Based on this information, they decide whether or not to become patients or clients.

Price Become Value

Instead of using economic theories to set price, S.I.V.A. advocates setting the price of a good or service based on the value a product offers to the consumers. The price of services is often determined in this manner as services are intangible products that can’t be priced based on the input of raw materials.

Place Become Access

The whole idea behind this is giving consumers access to products and services when and where they want it instead of dictating where a consumer has to go to get it. These days even beauticians are willing to come to your home to do your hair. Other service providers provide information and services on the Internet as opposed to making you come to their office.