Marketing is all about connecting solutions and needs. Nowadays, mastering the new gen marketing by deepening connection between marketers and Gen-AI capabilities , becomes a key factor for creating a competitive advantage.
Addressing the (4)7Ps through a systematized process along with new tech enabling flexibility and efficiency like never before — it’s time to break down the intersection between the 4 critical original Ps and Gen AI
The marketing mix of Product, Price, Promotion, and Place was introduced to marketing education by E. Jerome McCarthy in 1960 and further popularized by Phillip Kotler both in theoretical and practical implementation for business and marketing organization.
The main concept to keep is that focusing on optmizing the 4 Ps enable businesses to serve their market while growing their sales, effectively.
Well developed and presented product, at the right price, positioned in the right locations and promoted effectively would yield in a happy market which would in turn lead to positive ROI => a solid business.
Today it is common to refer to additional Ps on top of the original model, including People, Processes and Performance
* Packaging is normally being added as well though I refer to it in this article as part of product development and presentation
The Marketing Mix in traditional vs. digital era
The digital era has significantly taken the 4 Ps to its next level of evolution. To make things short and to the point as well as putting some good rather new Gen-AI capabilities into practice, see below a comparison between the 4 Ps in traditional and digital eras, as created by Chat GPT Plus:
Gen AI implementations on marketing mix, 4 Ps
You cannot speak of the digital era, without mentioning data as a leading factor in producing great marketing through an optimized user experience and a data-driven approach to the 4 Ps.
Data then in turn does not only enable learning and indirect creation based on that learning — in Generative AI era, it enables the actual creation of something new, from scratch.
The key point for all 4 Ps — launch, measure, learn, apply, iterate
Production during the new gen marketing era is a key part of the growth mechanism of a product — first, launch a new product, gather data quickly, analyze, apply your conclusions and repeat the process, now with data-driven adjustments.
Using Generative AI from concept (e.g. using Chat GPT), Development (e.g. through Gen-AI APIs) and analysis (e.g. with Co-pilot) enables the quick iterations who are much needed for a proper lean growth marketing machine.
With pricing the steps and actions yet the process is similar.
Revenue growth management (RGM) ‘s principal about pricing is keeping it dynamic, market-sensitive and above all transparent and customized according to needs and willingness to pay.
Some of the key implementations include:
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- Pricing automation — based on user behavior and additional attributes based on known personal information
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- Cost & Profit boundaries — analyzing the ROI limits per each campaign along with automatic creation of a landing page with suggested pricing (mixing between gen-AI software such as Google Workplace gathering and analyzing the data with Durable, creating a data-driven LP)
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- Brand & Positioning — analyzing the impact of price increase or discount on demand based on user behavior previous changes
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- Read more about pricing in the new AI era by here
For Promotion and Place — stay tuned for the next chap
