The 4P strategy is a marketing mix strategy that combines product, price, promotion, and place. The concept, therefore, implements the study of the product, price, place, and promotion, with the aim being to define the objectives to be achieved and the actions to be taken in your marketing strategy to achieve them. Although brick-and-mortar stores remain the preferred purchasing channel for consumers, 75% of purchasing decisions are made online. This is, therefore, a crucial piece of information when establishing a marketing strategy. To meet these new demands, brands must constantly communicate with their customers, offer personalized services, and make promotions and product information accessible even before customers arrive in-store, and this is where AI comes into play. According to IBM Corporation, 80% of brands will adopt AI within the next 3 years, up from 40% currently. It is therefore intriguing to see how it impacts the 4Ps:
Product: Thanks to AI, businesses can analyze vast amounts of data on consumer preferences and sales trends, allowing them to identify market trends and more effectively anticipate customer demand. AI also optimizes supply chain management by monitoring product availability and their location in stores, thus minimizing costs related to overstocking and stockouts.
Price: AI helps brands set prices dynamically in response to real-time supply and demand fluctuations. Moreover, with smart tablets, pricing errors can be quickly detected and corrected by store staff.
Place (Distribution): AI is blurring the lines between physical and digital channels by transforming the way consumers make purchases. Cashless stores using intelligent product recognition and checkout automation have emerged (examples include Zara or Bershka), as have the use of voice recognition technology, chatbots, and interactive screens to enhance the in-store customer experience.
Promotion (Communication): AI allows brands and retailers to tailor promotion content based on purchase history, behavior, and customer preferences. Through programmatic advertising, marketing campaigns become more effective by targeting customers at the most suitable time and in the nearest store.
In conclusion, AI promises to revolutionize the retail industry by enabling brands and retailers to make more informed decisions and provide a seamless and personalized customer experience. To thrive, businesses should now explore the full potential of AI in an ever-evolving digital landscape.
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