Rethink: How We Teach Marketing

It's time to rethink how we teach marketing...

Consider the foundational marketing principle of the 4 P's (a concept, despite a lengthy career in marketing, I had never heard of until I started teaching marketing, which, I think, says something)... I have also had difficulty explaining the relevance of the 4 P's when faced with students eager to understand how they fit into today's modern marketing landscape. Are they still useful? Or are they a relic of Mad Men days gone by?

The 4 P's of marketing - Product, Price, Place, and Promotion - have been fundamental to marketing theory for decades. The 4 P's of Marketing were first introduced by E. Jerome McCarthy in 1960, over 63 years ago! The debate on their relevance continues on.

Some marketing professionals believe that the 4 P's remain a crucial foundation for all marketing strategies, while others see them as outdated concepts that haven't adapted to the modern, digital age. In 2015, the Chartered Institute of Marketing published a report on the ‘7Ps’, adding People, Process, and Physical Evidence to the list, which shows an effort to update the model to current market conditions.

Startup brands and some established businesses have been seen to deviate from the 4 P's, preferring improvisation and experimentation over rigidly defined marketing theories. For example, Britvic, a drinks group, has evolved its interpretation of the 4 P's by combining some with others and adding new principles of its own, such as 'C' for communication. They also added 2 additional P's: purpose, and penetration.

On the other hand, some marketing experts still see the 4 P's as "hugely relevant", as they highlight the extent to which marketing impacts a business's performance. The 4 P's remind us that marketing is much more than just advertising and emphasize the need for understanding customer wants and needs.

One survey showed that only 44% of marketers consider one of the 4 P's - price - as part of their job mix. Meanwhile, 27% don't have control but believe they should, and almost a third (29%) don't have primary responsibility for pricing and don't want it.

With the changes brought on by technology and shifts in how consumers behave, these classic principles might not hold as much weight as they used to. Here are some reasons why:

Consumers are in the driver's seat: In the age of social media, e-commerce, and digital marketing, consumers have a plethora of choices at their fingertips. They can shop from anywhere, compare products, and read reviews from other buyers. The old model of businesses controlling the 4 P's is being challenged as power shifts to the consumers.

One size does not fit all: In the modern world, consumers expect a personalized touch. They want products and services that cater to their unique needs, something the traditional 4 P's don't really focus on.

It's all about the experience: Today, it's not just about the product. It's about the whole experience surrounding it. Consumers are more interested in the overall experience they have with a brand, which is not something the 4 P's consider.

Building bridges with customers: In this era of social media and Customer Relationship Management (CRM), building and maintaining strong relationships with customers is key. But the 4 P's model doesn't explicitly cover this aspect.

Data is king: With the boom in big data and analytics, marketers can make decisions based on real-time data about customer behavior and preferences. This adds new dimensions to marketing strategies that the 4 P's don't capture.

Doing the right thing matters: Consumers nowadays care about sustainability and ethical practices. They want to support brands that share their values, which is not a factor in the traditional 4 P's.

While the 4 P's provide a helpful, albeit dated, framework, they might not cover all the aspects needed in today's multifaceted marketing landscape. Marketers might need to think about additional factors or modify the 4 P's to meet these new requirements. It also might be time, given the significant shift in technology and even basic ideas of consumer consumption, we consider a new approach.

McCarthy, E. Jerome. "Basic Marketing: A Managerial Approach." Homewood, IL: Richard D. Irwin, 1960.

Marketing Week. "The big debate: Are the ‘4Ps of marketing’ still relevant?" Marketing Week, 2023. https://www.marketingweek.com/big-debate-4ps-marketing-still-relevant/