There is a new phenomenon in Marketing. And it’s not Artificial Intelligence
“Science has had an undeniable impact on areas such as medicine, economics and psychology. In 2010, Byron Sharp said it was time to make an impact in Marketing. More than a decade later, we see and experience this impact more than ever.”
Since the public launch of ChatGPT, the Marketing discussion has focused on the various topics of Artificial Intelligence. And as is already common in our area, and particularly in Portuguese-speaking countries, the search for the “next big thing” neglects and even neglects other advances that deserve similar attention and level of discussion.
In January of this year, the Ehrenberg-Bass Institute, led by Byron Sharp, produced an article that confirms a new phenomenon – the “scientification” of Marketing. The article criticizes unscientific theories that dominate the field, such as Kotler’s STP or McCarthy’s 4Ps, and proposes a different approach to brand building. But more than the article’s proposal, it is worth analyzing what it means for the present and future of Marketing. In this opinion article, I seek to introduce the topic and establish the basis for a series of future reflections on the central topics of marketing science.
About the Ehrenberg-Bass Institute, Byron Sharp and Jenni Romaniuk
The Ehrenberg-Bass Institute is the largest marketing research center in the world, based at the University of South Australia. Initially called the Marketing Science Center, it was renamed Ehrenberg-Bass, following the contributions of Andrew Ehrenberg and Frank Bass, two famous academics who dedicated their careers to discovering scientific laws of marketing and consumer behavior. Currently, the institute is seen as, what I can best describe, a kind of Alexandria Library of Marketing.
The institute gained international popularity particularly with the literary contributions of Byron Sharp, director of the institute. The main one was How Brands Grow, a book about brand building that demystified Marketing and had an impact on the careers of several professionals and academics in the field. The book became one of the best sellers in Marketing and Business and is still seen today as the most influential in the field.
The success of How Brands Grow was followed by Marketing: Theory, Practice and Evidence and How Brands Grow 2, co-authored by Jenni Rommaniuk, who also wrote Building Distinctive Assets. Jenni is today one of the most influential Marketing professionals in the world, and her distinguished work (not to be confused with differentiation) has established a knowledge base that allows us to better evaluate work such as, on the national scene, the re-branding of Mimosa and the errors behind it.
The article: criticism of the marketing mix (or 4Ps) and STP theories
As is common in other literary works by Byron Sharp, John Dawes and Kirsten Victory, the new article by these authors begins by pointing out defects in established theories in Marketing. The first are the 4Ps, introduced by Jerome McCarthy in the 1960s (based on Neil Borden’s marketing mix, presented in the early 1950s), which classifies marketing activities between product, price, distribution and communication. In this model, the responsibility of marketers is seen as optimizing the marketing mix, in order to find the most attractive and profitable one.
In their criticism, the authors refrain from the 7Ps, the 15Ps, or other extensions of the marketing mix. Instead, the criticism is made of the essence of the model itself, which is limiting as a basis for knowledge and thought. The authors point out serious problems with the model when exposed to the scientific context, and give some examples:
· Product. Failure is common in new product launches that have been rated by consumers and industry experts as role models.
· Price. Price elasticity, particularly in large brands, is extremely low.
· Communication. Advertising tests can show returns on investment close to 0, even when the investment is double.
Read the full article in Marketeer.
