Marketing theory from P to E

Since the 1960s, the 4Ps of marketing theory have been famous, mostly through their publication in Kotler’s ‘Principles of Marketing’. However, Brian Fetherstonhaugh of OgilvyOne has suggested in the company’s latest bulletin that we should no longer look at 4Ps but 4Es.

In case you’re not familiar with the theory, the 4Ps are:

• Product
• Placement (or distribution channel)
• Price
• Promotion

The marketing mix defined by the 4Ps was created before the rise of computers and the internet, before globalisation was an integral part of our lives. So it’s no wonder that there is a growing push for marketing theory to prove it still applies in the same way.

Fetherstonhaugh suggests the following changes:

Product becomes Experience

Instead of focussing on a singular benefit to consumers, we should create stories and experiences, ie. branding. Creating a feeling lasts longer and is harder to replicate by competitors.

Place becomes Everyplace

Previously, distribution channels were set places and all traffic was directed there. Fetherstonhaugh argues that marketers need to be ‘everyplace’ that their customers are.

Price becomes Exchange

This recognises that the purchase of a product isn’t just an exchange of financial benefit, but also includes goodwill.

Promotion becomes Evangelism

Promotion is a one-way process: marketers talk, consumers listen. As discussed here, you want the people using your product to be talking about it – not just to you, but to the rest of the world.

So, do you agree that this is the new direction for marketing? Check out the full article here and tell us what you think!