Lesson 1-5: The New Four P's Of Marketing: Why Place Was Replaced
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What Is A Do Now?
Directions: During the Do Now, I will try to give you a preview of today's lesson. I will also try to trigger your memory and connect what is being taught today with what you know. I will also give you a list of what is expected of you today.
Do Now: Lets watch the video. It shows a shopping mall in the 1950's. Then, lets discuss the questions together below.
Questions:
1.) What is retail? What does it mean?
Checklist Of What You Need To Do Today To Get 100%
DO NOW:
1.) Participate in Do Now. (Actively participate, you are facing the discussion, not turned away from the discussion, phones are always away at all times in class)
Independent Practice:
2.) Read the text below.
3.) Complete Quiz
Lesson 1-5 (On Schoology)
4.) Complete worksheet prompt
5.) Actively listen during review.
1.) Participate in Do Now. (Actively participate, you are facing the discussion, not turned away from the discussion, phones are always away at all times in class)
Independent Practice:
2.) Read the text below.
3.) Complete Quiz
Lesson 1-5 (On Schoology)
4.) Complete worksheet prompt
5.) Actively listen during review.
A Brief History Of The Four P's Of Marketing
The Four P’s of Marketing—Product, Price, Place, and Promotion—were introduced in 1960 by E. Jerome McCarthy, an American marketing professor. McCarthy refined earlier marketing mix concepts and presented the Four P’s in his book Basic Marketing: A Managerial Approach. His framework simplified marketing strategy, making it more accessible for businesses and students. The Four P’s provided a structured way to analyze and implement marketing tactics, helping companies balance product development, pricing strategies, distribution channels, and promotional efforts.
McCarthy’s model was popularized further by Philip Kotler, one of the most influential marketing scholars. Kotler integrated the Four P’s into his teachings and textbooks, cementing them as a fundamental concept in marketing education. Over time, the framework has evolved to reflect changes in consumer behavior, technology, and business models, leading to modifications like replacing "Place" with "Distribution" and expanding marketing principles to include elements like personalization, experience, and sustainability. Despite these changes, the Four P’s remain a cornerstone of marketing strategy.
McCarthy’s model was popularized further by Philip Kotler, one of the most influential marketing scholars. Kotler integrated the Four P’s into his teachings and textbooks, cementing them as a fundamental concept in marketing education. Over time, the framework has evolved to reflect changes in consumer behavior, technology, and business models, leading to modifications like replacing "Place" with "Distribution" and expanding marketing principles to include elements like personalization, experience, and sustainability. Despite these changes, the Four P’s remain a cornerstone of marketing strategy.
Why "Place" Became "Distribution" in Marketing
Marketing’s classic Four P’s--Product, Price, Place, and Promotion—have long served as a foundation for strategic decision-making. However, in the modern digital era, the concept of "Place" has evolved into "Distribution" to better reflect the complexities of how goods and services reach consumers. This shift acknowledges the increasing role of technology, globalization, and omnichannel strategies in delivering products efficiently and effectively to target audiences.
The traditional idea of "Place" primarily referred to physical locations—brick-and-mortar stores, shopping malls, or geographical regions where a product was available. But today, the rise of e-commerce, digital platforms, and direct-to-consumer (DTC) brands has drastically changed how businesses operate. Consumers no longer rely solely on physical locations to access products; they expect seamless shopping experiences across online marketplaces, mobile apps, subscription services, and even social media. Thus, "Distribution" better encompasses the diverse range of channels through which products are made available, whether physical or digital.
Another key factor in this shift is the role of logistics and supply chain management. In the past, simply placing a product in a retail store was enough. Today, businesses must navigate complex supply chains, warehouse automation, same-day delivery services, and global shipping networks. Distribution highlights the behind-the-scenes processes that ensure products are delivered quickly, efficiently, and cost-effectively to customers, whether through Amazon’s fulfillment centers, dropshipping models, or localized micro-fulfillment hubs.
The shift to "Distribution" also acknowledges the increasing importance of customer convenience and experience. Modern consumers expect flexibility—buying online and picking up in-store (BOPIS), same-day or even one-hour delivery, and subscription-based replenishment models. The term "Place" no longer captures the full extent of these options, whereas "Distribution" aligns with the dynamic, customer-centric approach that businesses now take to ensure products reach the right people at the right time, in the right way.
Finally, the redefinition of "Place" to "Distribution" underscores the data-driven nature of modern marketing. Companies now use advanced analytics, artificial intelligence, and machine learning to optimize distribution networks, forecast demand, and personalize delivery options. Businesses that master distribution gain a competitive edge by reducing costs, increasing efficiency, and meeting customer expectations more precisely. As the digital landscape continues to evolve, the role of distribution will only become more critical, reinforcing its place as a core pillar of modern marketing strategy.
The traditional idea of "Place" primarily referred to physical locations—brick-and-mortar stores, shopping malls, or geographical regions where a product was available. But today, the rise of e-commerce, digital platforms, and direct-to-consumer (DTC) brands has drastically changed how businesses operate. Consumers no longer rely solely on physical locations to access products; they expect seamless shopping experiences across online marketplaces, mobile apps, subscription services, and even social media. Thus, "Distribution" better encompasses the diverse range of channels through which products are made available, whether physical or digital.
Another key factor in this shift is the role of logistics and supply chain management. In the past, simply placing a product in a retail store was enough. Today, businesses must navigate complex supply chains, warehouse automation, same-day delivery services, and global shipping networks. Distribution highlights the behind-the-scenes processes that ensure products are delivered quickly, efficiently, and cost-effectively to customers, whether through Amazon’s fulfillment centers, dropshipping models, or localized micro-fulfillment hubs.
The shift to "Distribution" also acknowledges the increasing importance of customer convenience and experience. Modern consumers expect flexibility—buying online and picking up in-store (BOPIS), same-day or even one-hour delivery, and subscription-based replenishment models. The term "Place" no longer captures the full extent of these options, whereas "Distribution" aligns with the dynamic, customer-centric approach that businesses now take to ensure products reach the right people at the right time, in the right way.
Finally, the redefinition of "Place" to "Distribution" underscores the data-driven nature of modern marketing. Companies now use advanced analytics, artificial intelligence, and machine learning to optimize distribution networks, forecast demand, and personalize delivery options. Businesses that master distribution gain a competitive edge by reducing costs, increasing efficiency, and meeting customer expectations more precisely. As the digital landscape continues to evolve, the role of distribution will only become more critical, reinforcing its place as a core pillar of modern marketing strategy.
Could There Be More Changes To The Four P's Of Marketing In The Future?
Yes, the Four P’s of Marketing—Product, Price, Promotion, and Distribution (formerly Place)—will continue to evolve as marketing adapts to new consumer behaviors, technologies, and business models. Here are some potential changes or additions that could redefine the framework in the coming years:
1. The Rise of Personalization (People or Personalization as a New "P")With AI-driven marketing, brands now tailor experiences to individual consumers. The traditional "Product" category could shift toward "Personalization," emphasizing that businesses don’t just sell generic products but instead offer customized solutions based on data and behavioral insights. Whether it's personalized product recommendations, AI-driven pricing, or interactive content experiences, personalization is becoming an essential marketing strategy.
2. Experience as a Core Element (Adding "Perception" or "Participation")Customer experience (CX) now plays a major role in brand success. Businesses aren’t just competing on products or price; they compete on how seamless, enjoyable, and engaging the customer journey is. This could lead to the emergence of "Perception" (how consumers view the brand) or "Participation" (how engaged customers are) as a new pillar, emphasizing customer involvement, loyalty programs, and interactive marketing strategies.
3. Sustainability and Purpose-Driven Marketing ("Planet" or "Purpose")Consumers increasingly support brands that align with their values, particularly regarding sustainability, ethics, and corporate social responsibility (CSR). Businesses that embrace "Planet" (environmental responsibility) or "Purpose" (mission-driven marketing) could create a competitive edge. Marketing frameworks may integrate sustainability into decision-making, forcing companies to consider environmental impact when developing, pricing, promoting, and distributing products.
4. The Expansion of AI and Automation ("Predictive" or "Processing")As AI, machine learning, and automation continue to redefine marketing, businesses will focus on predictive analytics, chatbots, and real-time data optimization. A new "P" for Predictive Analytics or Processing could highlight the increasing role of big data, AI-driven decision-making, and automation in marketing strategies. This shift reflects how brands make decisions proactively rather than reactively.
5. The Blurring of Price and Value ("Performance" or "Perceived Value")Pricing strategies have changed significantly due to subscription models, freemium services, and value-based pricing. Instead of static price points, companies now emphasize value perception—how much a customer believes a product or service is worth. A shift from "Price" to "Performance" or "Perceived Value" could better represent the modern approach to pricing, where consumers evaluate cost based on long-term benefits, brand trust, and overall experience.
Conclusion: The Four P’s Are Becoming More DynamicWhile the core principles of marketing remain relevant, the way businesses operate has drastically changed. Future marketing frameworks will likely expand beyond the original Four P’s, incorporating personalization, experience, sustainability, predictive analytics, and value perception as essential elements. The marketing mix will continue to adapt as technology, consumer expectations, and global challenges evolve, ensuring businesses remain agile in an increasingly digital and customer-driven world.
1. The Rise of Personalization (People or Personalization as a New "P")With AI-driven marketing, brands now tailor experiences to individual consumers. The traditional "Product" category could shift toward "Personalization," emphasizing that businesses don’t just sell generic products but instead offer customized solutions based on data and behavioral insights. Whether it's personalized product recommendations, AI-driven pricing, or interactive content experiences, personalization is becoming an essential marketing strategy.
2. Experience as a Core Element (Adding "Perception" or "Participation")Customer experience (CX) now plays a major role in brand success. Businesses aren’t just competing on products or price; they compete on how seamless, enjoyable, and engaging the customer journey is. This could lead to the emergence of "Perception" (how consumers view the brand) or "Participation" (how engaged customers are) as a new pillar, emphasizing customer involvement, loyalty programs, and interactive marketing strategies.
3. Sustainability and Purpose-Driven Marketing ("Planet" or "Purpose")Consumers increasingly support brands that align with their values, particularly regarding sustainability, ethics, and corporate social responsibility (CSR). Businesses that embrace "Planet" (environmental responsibility) or "Purpose" (mission-driven marketing) could create a competitive edge. Marketing frameworks may integrate sustainability into decision-making, forcing companies to consider environmental impact when developing, pricing, promoting, and distributing products.
4. The Expansion of AI and Automation ("Predictive" or "Processing")As AI, machine learning, and automation continue to redefine marketing, businesses will focus on predictive analytics, chatbots, and real-time data optimization. A new "P" for Predictive Analytics or Processing could highlight the increasing role of big data, AI-driven decision-making, and automation in marketing strategies. This shift reflects how brands make decisions proactively rather than reactively.
5. The Blurring of Price and Value ("Performance" or "Perceived Value")Pricing strategies have changed significantly due to subscription models, freemium services, and value-based pricing. Instead of static price points, companies now emphasize value perception—how much a customer believes a product or service is worth. A shift from "Price" to "Performance" or "Perceived Value" could better represent the modern approach to pricing, where consumers evaluate cost based on long-term benefits, brand trust, and overall experience.
Conclusion: The Four P’s Are Becoming More DynamicWhile the core principles of marketing remain relevant, the way businesses operate has drastically changed. Future marketing frameworks will likely expand beyond the original Four P’s, incorporating personalization, experience, sustainability, predictive analytics, and value perception as essential elements. The marketing mix will continue to adapt as technology, consumer expectations, and global challenges evolve, ensuring businesses remain agile in an increasingly digital and customer-driven world.