If you're a digital marketer trying to make your way across the competitive landscape of today, you may have noticed that something's different. The classic 4Ps model that has been the foundation of marketing strategy since 1960 no longer reveals the whole picture. Why is that? Because marketing has transformed from pushing products to creating experiences, and the ingredients of the Fourth P have become critical to success. McKinsey's research on personalization, for instance, finds that personalization can lift revenues by 5 to 15 percent and increase marketing ROI by 10 to 30 percent. But here is the twist, depending on your point of view, there is actually more than one interpretation of the "Fourth P."
The classic elements of the marketing mix have a straightforward beginning. In 1960, E. Jerome McCarthy gave us Product, Price, Place, and Promotion and provided us with a model that became the industry standard in marketing education for years. But by 1981, something had to give. The service economy was on the rise, and marketers saw the need for more tools to address what they were marketing, which was increasingly intangible.
And then came Bernard H. Booms and Mary J. Bitner, who extended the mix for services. They added three Ps: People, Process, and Physical Evidence. The American Marketing Association describes them as who is involved in the production, promotion, and distribution of your product, how the product is delivered to the customer, and how you prove to customers that your business exists. This wasn't academic theory, it had real applications to the challenges marketers were dealing with every day.
The Oxford College of Marketing credits the extended 7Ps to Booms and Bitner. An academic study by Rafiq and Ahmed surveyed UK and European marketing academics and found that the 7Ps framework "has already achieved a high degree of acceptance as a generic marketing mix", alongside a high degree of dissatisfaction with the 4Ps.
People also refers to employees serving clients and the larger workforce backing up the service delivery. This also includes customer care agents, sales teams, and those who work behind the curtains and indirectly influence the customer service experience. Companies that perform well in the People element invest more in training, cultivate positive work environments, and empower employees to make decisions that serve customers.
Process applies to the step-by-step procedures or actions used by a company to provide services or to conduct business. This is everything from ordering systems, to delivery logistics, to customer service protocols. When things are done effectively, friction is reduced, wait times are shorter, and there is a predictable, repeated experience that customers can trust.
Physical Evidence refers to everything tangible that the customer comes into contact with when they interact with a business. That's including the building, packaging, website, documentation, and any physical touchpoint that helps add to that trust in your brand and quality of your service. These days, this encompasses both UI/UX and how a website and the content is presented online.
What academics concluded with the 7Ps, digital marketers find something remarkably different. Companies like Netflix, Amazon, and Spotify weren't just adding People or Process, they were innovating with hyper-personalized experiences that disrupted entire industries. This is how Personalization became the so-called "new Fourth P" or even "Fifth P" of marketing today for many.
The statistics tell a story of their own. According to McKinsey, companies with faster growth rates derive 40 percent more of their revenue from personalization than their slower-growing peers. This is not just marginal improvement, this is the core of transforming how business is done.
i"Either you're going to tell stories that spread, or you will become irrelevant."
, Seth Godin, Marketing Author and Entrepreneur
Sephora changed the game in retail beauty shopping with complete Fourth P strategies at their fingertips. Their Beauty Insider program isn't just a purchase tracking program, it also harnesses AI to recommend products based on your skin type, color preferences and past purchases. The Virtual Artist tool allows customers to sample makeup through augmented reality, and Color IQ customizes shade matching.
The results speak volumes. According to LoyaltyLion, Beauty Insider members are responsible for 80% of the company's sales, and the program has 17 million members in North America alone. Sephora also ranked #1 on Sailthru's Retail Personalization Index for several years. Sephora designed an ecosystem with a strong emphasis on the environmental elements of People (artist network and community) and Process (integrated across bricks & clicks, online/offline experience) with Personalization (algorithms driving the discovery, personal product pushes).
Sephora also moved beyond the traditional transactional norm. What is particularly impressive, as The Bottleneck notes, is how the program blends emotional and transactional loyalty.
Netflix took the idea of Physical Evidence, something traditionally physical about a service, like a neat office, and reinvented it for the digital age of streaming. The thumbnails you see are tailored to your viewing history, so different users can see different images for the same title.
Netflix shows us that when you nail the elements of the Fourth P, whether that's People (understanding viewer preferences), Process (streaming without a hitch) or Personalization (recommendation algorithms), you can win entire industries and develop lasting competitive advantages.
Spotify Wrapped has become a cultural phenomenon in part because it turned a user functionality inside-out and created shared, individual experiences. According to NoGood, Wrapped has dominated online conversations and social media platforms every December, and it was designed for sharing, with 9:16 images for Instagram Stories and share buttons throughout. The same analysis notes that Spotify's userbase rose to 263 million paying subscribers in 2024.
i"Creating value is the central concept of marketing."
, Philip Kotler, The Father of Modern Marketing
Firms that execute broad-based Fourth P strategies can see increases over time in a variety of customer metrics. When you concentrate on People, developing your staff, creating relationships and connections, customer satisfaction can go up. And throw Process optimization into the mix, and you're cutting down friction points that lead to abandonment. Add in Personalization, and you build experiences around which your customers will stick for years.
According to DemandSage, companies that provide a personalized experience to customers can generate 40% more revenue. It isn't just that you get better service, it is that you get systematic benefits that build momentum and form a competitive moat that competitors find very hard to replicate.
The Elements of Fourth P work together to get the most possible from every dollar a company spends in marketing. Porch Group Media puts the return on email marketing at $38 for every $1 spent. Meanwhile, Revology Analytics says organizations using a Marketing Mix Modeling (MMM) approach for budget optimization typically achieve a 15-20% increase in marketing ROI.
The secret is to know how the elements of People, Process and Physical Evidence drives multiplier effects. When your customer service team (People) are backed by effective processes (Process) and professional presentation (Physical Evidence), the elements combine and lift one another, rather than sitting in silos.
With more crowded markets, the elements of the Fourth P become your primary differentiators. In contrast to rival behavior where intense competitors fight based on product and price, superior performance in People, Process, Physical Evidence, and Personalization leads to sustainable competitive advantages that are hard to replicate. McKinsey research shows that 71 percent of consumers expect companies to deliver personalized interactions, a figure Blogging Wizard also highlights, which means personalization is no longer a nice-to-have but a must-have.
Companies that excel at this are competing on more than price, they are competing on the experience, the quality of the relationship, the value they can deliver above and beyond the initial transaction. This in turn results in lasting customer loyalty that does not crack under pressure from the competition or an economic downturn.
A significant amount of contemporary Fourth P work depends on advanced data collection and analysis. Carmatec reports a 2024 Sellforte study in which eCommerce brands using MMM increased revenue by 2.9% with optimized budget allocation. This is now taking marketing from guesswork and gut feeling to scientific methodology.
Data from People interactions, Process optimizations and Physical Evidence tests feed back loops of best performance of all marketing activities to be improved over time, leading to self-improving marketing activities.
The lovely thing about Fourth P strategies is that they can scale well. When you have strong Processes, People trained the right way, and Personalization engines built, they all compound, as opposed to needing to get re-invested in all of the time. In one Revology Analytics case study, reallocating budget toward more effective digital channels boosted overall ROI by 10-15% for a $150 million public interest enterprise.
Unlike advertising, where to receive results you've got to be investing all the time, Fourth P improvements create lasting competitive advantages that continue paying dividends long after initial implementation, making them ideal for sustainable business growth.
Promotion is often referred to as the Fourth P in McCarthy's original 4Ps. However, contemporary marketing acknowledges the 7Ps extended model with People, Process and Physical evidence as the fifth, sixth and seventh Ps. Even other traditional P's have been left behind as the new "P", Personalization, quickly makes it's way into the mainstream marketing conversation around the digital water cooler.
First thing to do is a full inventory of how you are doing it now on all those P's. For People: Assess the skills of your team, training programs, and any point of contact with your customers, do they consistently deliver brand-aligned experiences? For Process: Map an entire customer journey and pinpoint any friction, then use analytics software and feedback from customers. When it comes to Physical Evidence, consider your online brand, your website, your customer testimonials, and your credibility markers. For Personalization: Begin systematically gathering & analyzing customer data for tailored experiences through email segmentation, behavioral targeting, and dynamic content.
The importance depends on your business model, existing gaps and available resources. As a rule of thumb for Service businesses, People and Process should be the attention areas as most customer value and satisfaction gets derived from human interface. E-commerce firms, in particular, can experience quick wins from Personalization via recommendation engines, personalized messaging, and dynamic pricing. Perhaps B2B companies develop Physical Evidence first, case studies, testimonials, professional presentation since trust signals become quite important in longer sales cycles and higher-value transactions. Honestly evaluate where you have the greatest gaps or greatest potential for measured improvement.
There is no universal benchmark for how much of your marketing budget should go to Fourth P components; it varies widely by industry and stage of maturity. Smart implementation begins small when developing pilot programs, try one component at a time, monitor results, and scale based on known performance, rather than sinking big investments without prior validation.
Sure can, and sometimes even better than big companies. The People component, this is where small business often can have the edge in spades, after all you know what they've got, they're not operating with out of date cost centres, and they're not taking the decision to their "owners" in another state, it's just you, and you know today, not in the future. Basic improvements such as automated email sequences, basic personalization through tools such Mailchimp and email collection through a repeatable customer feedback process can provide a big lift as well. Focus on one area at a time, you can utilize free or low-cost tools to start, and keep in mind that many Fourth P enhancements require more strategic consideration and systematic activity than they do large cash investments.
Define the measurements of success for each part ahead of time. For People: monitor employee satisfaction scores, customer service ratings, Net Promoter Score and community engagement metrics. For Process: track conversion rates per steps, time to purchase, customer effort scores, and abandon rates. For Physical Evidence: utility of trust signals performance, popularity of social proofs, brand perception surveys, website credibility dimensions. For Personalization: study increase in engagement rates, average order value, lifetime value of a customer, and conversion improvements per segment. Employ cohort analysis to understand long-term outcomes, rather than just immediate ones.
Begin with must-have tools such as CRM systems (HubSpot, Salesforce) for People management and customer data, analytics platforms (Google Analytics 4, Mixpanel) for Process optimization and performance tracking, personalization engines (Optimizely, Dynamic Yield) for targeted experiences, process automation tools (Zapier, Make) for throughput, and customer feedback systems (Typeform, SurveyMonkey) for iterative feedback. Start with free or low-cost alternatives, test your method, and then invest in more advanced tools as you grow and demonstrate success with your efforts.
i"The Fourth P evolution represents more than just adding new elements to the marketing mix, it's about fundamentally shifting from product-centric to customer-experience-centric thinking. Companies that master this transition don't just improve their metrics, they create sustainable competitive advantages that are nearly impossible to replicate."
Tessar Napitupulu, Founder and CEO of Arfadia
Before jumping in with tools, techniques, etc., make sure you have a set of clear, measurable goals for all elements of the Fourth P. Explain what success looks like for People (customer satisfaction scores, staff engagement), Process (conversion rates, efficiency metrics), Physical Evidence (trust markers, brand reputation), and Personalization (engagement rates, revenue per customer). Then have a responsibly made strategy aligning these to overall business goals instead of ad-hoc improvements everywhere without strategy.
One common framework is the 70-20-10 ratio, where 70% is committed to working Fourth P strategies with serviceable ROI, 20% to emerging practices with strong potential, and 10% to experimental Fourth P approaches for potential future delivery. This balanced method encourages ongoing improvement and competitive advantage.
"Make sure your organization is providing tools and information that are of value at the moment," says Sara Varni, former CMO at Twilio. Which is why you need hard data infrastructure, and systems in place to collect it in the first place. Establish a centralised customer data platform (CDP) that links all touchpoints, allowing for individualised marketing, in line with privacy regulations and ensuring customer trust with clear data usage guidelines.
Effective implementation of Fourth P requires dismantling of departmental silos within the organisation. Your People determines your Process which in turn supports the Physical Evidence you present, and it ought to all be fed into your Personalization engines that keep the optimization flowing.
i"Always think about the next horizon. Customers own the conversation now. You must play among them to influence them."
, Robin Korman, Former CMO of Wyndham Destination Network
Invest in continuous education that helps them see how their individual role ties in to broader Fourth P agendas and business success. When your people know why they do what they do, they'll work to improve, and be inspired, rather than just follow what the book says.
Anne Finucane's principle is: "If you create a purpose, make sure you deliver on that purpose. It is the filter through which you make every decision." Use that as the basis of Fourth P testing by testing regularly and systematically. Conduct measured A/B tests around Process changes, pilot new Physical Evidence factors with small clusters of customers, and slowly scale Personalization around those hurdles using data, not hunches.
Create stringent testing protocols that enable you to separate the influence of the P-elements from the others one by one, and then together. By taking this empirical approach, you can avoid costly mistakes and make changes not based on intuition or industry fashion, but on what's proven for you.
Just make sure your Fourth P actions are always in line with core brand truths and customer expectations. Uniformity among People behavior, Process design, Physical Evidence presentation, and how companies aim Personalization efforts produce seamless experiences that are genuine and beneficial not contrived or controlling.
The Fourth P isn't some cadence punctuating a recurring parade of empty marketing buzz, it's the underlying transformation of how successful businesses engage with customers in ways that are both meaningful, profitable, and sustainable. Whether you make it easy for people to love you through the 7Ps of academe (People, Process, and Physical Evidence), or you do the mental shift and focus on Personalization, the message is clear: marketing success today requires moving beyond product-centric thinking to experience-centric strategy.
The payoffs can be measurable. McKinsey finds that faster-growing companies derive 40 percent more of their revenue from personalization than slower-growing peers, and Revology Analytics reports that organizations using marketing mix modeling for budget optimization typically achieve a 15-20% increase in marketing ROI. These are the kinds of results that differentiate market leaders from the pack in the increasingly competitive, digital world.
The Fourth P is the challenge for digital marketers aged 25-35, but also the once-in-a-lifetime career opportunity and business impact. You have a unique opportunity to use sophisticated technology and retain that authentic human touch, where you can automate complex processes that still feels personalized, and you can scale systematic processes that still feel personal and valuable for the customer.
Begin with what you have, focus on one aspect at a time to maximum effect, then build systematically towards the total synthesis which is comprehensive mastery of the Fourth P in ways that your competition never can match. Remember the words of Sheryl Adkins-Green: "Marketing momentum is about the everyday energy and relevance that you keep pulsing throughout your brand and organization." The Fourth P is the strategy catalyst that creates that momentum when equal focus comes in line with People, Process, Physical Evidence and Personalization together.
The future is for marketers who are able to integrate all P elements, both traditional and new, to their business strategies to truly delight customers, as well as to sustain business growth and profitability. Become a Fourth P master and you're not just marketing products or services, you're creating experiences customer's don't even know they can't live without, relationships they actually treasure, and value propositions your competitors can't even begin to understand, much less get right.
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