The New 4 P’s of Marketing

I read this post at my friends’ blog Dave Duarte

The Marketing page on Wikipedia now includes a sub-section called: “Web 2.0 and Marketing New 4Ps”.

The original 4Ps concept idea was developed to help marketers manage the four most important aspect of marketing (Product, Price, Place, and Promotion). With the Internet and the Web 2.0, marketers have needed to adapt a broader perspective on these elements. Idris Mootee devised a “New 4Ps” model in 2001 to supplement the traditional marketing 4Ps.

Web 2.0 and Marketing New 4Ps
The original 4Ps concept idea was developed to help marketers manage the four most important aspect of marketing. With the Internet and the Web 2.0, marketers have needed to adapt a broader perspective on these elements. Idris Mootee devised a “New 4Ps” model in 2001 to supplement the traditional marketing 4Ps.[2] They are Personalization, Participation, Peer-to-Peer and Predictive Modeling.

• Personalization: The author here refers to customization of products and services through the use of the Internet. Early examples include Dell on-line and Amazon.com, but this concept is further extended with emerging social media and advanced algorithms. Emerging technologies will continue to push this idea forward.
• Participation: This is to allow customer to participate in what the brand should stand for; what should be the product directions and even which ads to run. This concept is laying the foundation for disruptive change through democratization of information.
• Peer-to-Peer: This refers to customer networks and communities where advocacy happens. The historical problem with marketing is that it is “interruptive” in nature, trying to impose a brand on the customer. This is most apparent in TV advertising. These “passive customer bases” will ultimately be replaced by the “active customer communities”. Brand engagement happens within those conversations. P2P is now being referred as Social Computing and will likely to be the most disruptive force in the future of marketing.
• Predictive modeling: This refers to neural network algorithms that are being successfully applied in marketing problems (both a regression as well as a classification problem).