Lesson 1-5: The New Four P's Of Marketing: Why Place Was Replaced 

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LESSON SUMMARY
​The Four P’s of Marketing—Product, Price, Place, and Promotion—were introduced by E. Jerome McCarthy in 1960 to provide a simplified framework for analyzing marketing strategies. This model has become foundational in marketing education, further popularized by Philip Kotler. Over the years, the Four P’s have adapted to reflect changes in consumer behavior and technology, leading to the replacement of "Place" with "Distribution." This shift acknowledges the complexities of modern marketing, where e-commerce, logistics, and customer experiences play vital roles in how products are delivered to consumers. Distribution emphasizes the need for efficiency and customer-centric approaches, aligning with the digital landscape's demands.

As marketing continues to evolve, the framework of the Four P’s may undergo further transformations. Potential changes include incorporating personalization, customer experience, sustainability, and advanced analytics into the marketing mix. Concepts like "Perception" or "Participation" could emerge, emphasizing the importance of customer engagement and loyalty. Additionally, sustainability and purpose-driven marketing are becoming increasingly relevant, prompting businesses to consider their environmental impact. The dynamic nature of the marketing landscape indicates that the principles of the Four P’s will remain relevant while adapting to the needs and expectations of modern consumers in an increasingly digital world.

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Goals

SWBAT understand that the traditional blueprint for marketing; the four P's (Product, Price, Place, Promotion) has changed because the world has changed. At the present, Place is not as relevant as it used to be. ​

Essential Questions

Define the Four P's of Marketing. List the Four P's of Marketing introduced by E. Jerome McCarthy. Identify the main purpose of the Four P's in marketing strategy. Recall who popularized the Four P's in marketing education. Compare and contrast the traditional concept of "Place" with the modern concept of "Distribution." Summarize how technology has influenced the evolution of the Four P's in marketing. Classify examples of each of the Four P's in a marketing campaign. Estimate how consumer behaviors may shift the focus of the Four P's in the next decade. ​

Vocabulary

Vocabulary List for "A Brief History Of The Four P's Of Marketing" Product - An item or service offered to consumers to satisfy their needs or wants. Price - The amount of money required to purchase a product or service; a critical factor in marketing strategies. Place - The location or means by which a product is made available to consumers (now evolved to "Distribution"). Promotion - The activities that communicate the product's features and benefits to consumers, aiming to increase sales. Distribution - The process of delivering products to consumers through various channels, encompassing both physical and digital means. Marketing Mix - A combination of factors that can be controlled by a company to influence consumers' purchasing decisions. Consumer Behavior - The study of how individuals make decisions to spend their resources on consumption-related items. E-commerce - The buying and selling of goods or services using the internet, changing traditional marketing practices. Logistics - The detailed coordination of complex operations involving people, facilities, and supplies to ensure efficient distribution. Supply Chain Management - The management of the flow of goods and services, including all processes that transform raw materials into final products. Personalization - Tailoring products or marketing messages to individual consumers based on data and behavioral insights. Customer Experience (CX) - The overall perception of a brand that is shaped by every interaction a customer has with it. Sustainability - Meeting current needs without compromising the ability of future generations to meet their own needs, increasingly relevant in marketing. Predictive Analytics - Techniques that use data, statistical algorithms, and machine learning to identify the likelihood of future outcomes based on historical data. Value Perception - The customer’s evaluation of how much a product or service is worth based on their experiences and expectations. Jerome McCarthy: was an American marketing professor who introduced the 4Ps of marketing (Product, Price, Place, Promotion) in his 1960 book Basic Marketing: A Managerial Approach, shaping modern marketing strategies. Philip Kotler: Philip Kotler is a renowned American marketing professor, author, and consultant, often called the "Father of Modern Marketing," known for his contributions to marketing theory, including the expansion of the 4Ps framework and the concept of marketing management. Retail: is the process of selling goods or services directly to consumers for personal use, typically through physical stores. Retail can sometimes describe online platforms, but usually when people say "retail" they are speaking of physical stores.

Higher Level Questions

Investigate the impact of e-commerce on the traditional marketing mix and draw conclusions about its effectiveness. Formulate a marketing strategy using the Four P's for a new product launch in today's digital marketplace. Assess the role of customer experience in shaping modern marketing strategies based on the evolution of the Four P's. Construct a presentation that critiques the relevance of the Four P's in the context of sustainability and purpose-driven marketing. Analyze the potential future changes to the Four P's of Marketing and create a new framework that incorporates these changes. Critique the effectiveness of the Four P's in addressing contemporary consumer needs and preferences in a globalized market. Create a detailed marketing plan for a hypothetical product that integrates the modern adaptations of the Four P's, including personalization and sustainability. Design a research project to explore how AI and automation are reshaping marketing strategies and apply your findings to propose innovative marketing solutions. ​

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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. 

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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?

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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. 

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.

The Four P's Of Marketing In 1960

The Four P's Of Marketing Today

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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.

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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.
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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.

Higher Level Questions

None for this lesson.

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