AI-Personalisation Across the Marketing Mix
The marketing mix, the 4Ps of Product, Price, Place, and Promotion, extended to the 7Ps for services, remains one of the most influential frameworks in marketing. But in 2025, artificial intelligence is reshaping how each element works. Instead of generic offerings and broad campaigns, businesses now personalise products, pricing, distribution, and promotions in real time.
Let’s explore how AI personalisation transforms the marketing mix, how to measure it with marketing mix modelling (MMM), and how tools like VidAU are making personalisation scalable and affordable across industries.
What is the Marketing Mix?
The marketing mix definition has evolved since Jerome McCarthy first coined the 4Ps in 1960. At its simplest, it refers to the set of controllable factors, Product, Price, Place, and Promotion, that shape demand and customer experience. Businesses use it as a blueprint to align decisions around what they offer, how they price it, where they distribute it, and how they promote it.
Over time, the framework expanded into the 7Ps to better account for service industries. These additional three elements, People, Process, and Physical Evidence, help capture the nuances of customer experience in areas like hospitality, healthcare, and consulting.
Traditionally, the marketing mix was static, adjusted in quarterly or annual planning cycles. But digital technologies and consumer expectations have made it dynamic. In 2025, AI-powered personalisation ensures that the marketing mix adapts continuously, often in real time.
Product: From Standardisation to Personalisation
In the traditional mix, the Product refers to what a company offers: its features, design, assortment, and packaging. Historically, businesses created products for broad markets and relied on segmentation to refine offerings.
AI-Personalised Product Development
Artificial intelligence transforms product strategy by predicting customer preferences before they are even voiced. Algorithms analyse search data, social media signals, and purchase history to anticipate demand and guide product development. For instance, fashion retailers now use AI to design capsule collections that reflect micro-trends emerging on TikTok or Instagram.
Packaging as a Personalisation Tool
Packaging is no longer only about protection and branding; it is a communication channel. AI enables rapid testing of packaging variations to see which designs resonate with different segments. Coca-Cola’s original “Share a Coke” campaign used printed names; in 2025, brands go further with AI-driven packaging personalisation, generating seasonal or local variations at scale.
VidAU’s Role in Product Launches
Launching a product is as much about storytelling as it is about innovation. This is where VidAU’s text-to-video AI adds value. By transforming product information into engaging videos tailored for different audiences, brands can scale personalised product launches without hiring large production teams.
Price: The Rise of AI-Driven Pricing Models
Pricing has always been a delicate balance between value perception and profitability. Traditional approaches relied on cost-plus formulas, competitive benchmarking, or psychological tactics like $9.99 endings. These methods remain, but AI has revolutionised how companies set and adjust prices.
Dynamic Pricing in Real Time
E-commerce leaders like Amazon adjust millions of prices daily using AI. Hotels, airlines, and ride-hailing platforms pioneered dynamic pricing, but today it extends across industries. AI models account for competitor activity, demand surges, and even weather patterns to adjust prices instantly.
Elasticity and Willingness-to-Pay
AI also helps businesses understand price elasticity, how sensitive demand is to price changes, on a granular level. Instead of applying one elasticity curve to the whole market, companies can predict willingness-to-pay for different micro-segments, reducing the risk of over-discounting.
VidAU and Price Communication
Transparent communication is key to avoiding consumer backlash against dynamic pricing. Here, VidAU’s video AI helps explain pricing structures in a customer-friendly way. Imagine a subscription company using personalised video explainers to show customers the value of different tiers, turning complex pricing models into engaging narratives.
Place: Omnichannel Becomes Unified Commerce
“Place” once referred to physical distribution, whether a product was available in stores, through wholesalers, or by mail order. In 2025, it means unified commerce, where customers move fluidly between physical and digital channels.
AI in Distribution and Logistics
AI predicts demand at a hyper-local level, helping retailers allocate inventory to the right store or warehouse. It also powers last-mile delivery optimisation, recommending faster, cheaper, or greener shipping options based on individual customer preferences.
Personalising the Omnichannel Experience
Consider a grocery chain: some customers prefer delivery, others click-and-collect, while still others shop in-store. AI learns these preferences and tailors options accordingly. By aligning logistics with behaviour, businesses reduce friction and increase loyalty.
VidAU for Localised Place Marketing
Reaching customers across different locations requires contextual communication. With VidAU’s text-to-video AI, retailers can create localised promotional videos, for example, highlighting curbside pickup in one city and next-day delivery in another. This ensures Place is not only operationally optimised but also effectively communicated.
Promotion: Content and Campaigns at Scale
Promotion is where AI personalisation is most visible. Traditionally, businesses relied on broad campaigns across TV, print, and radio, later adding digital ads and social media. Now, AI enables content personalisation at scale, delivering different creative messages to different people at the same time.
AI-Driven Content Creation
Generative AI tools create thousands of ad variations, each personalised to a target segment. Messaging adapts based on demographics, purchase history, or browsing behaviour. Instead of showing the same ad to everyone, each customer sees the one most likely to resonate.
Predictive Targeting and Timing
AI also determines the best time to deliver content. For instance, predictive analytics may reveal that one user is most responsive to promotions at 7 AM on weekdays, while another prefers Sunday evenings. Campaigns adapt accordingly.
VidAU as the Promotion Engine
This is where VidAU’s text-to-video AI becomes a true differentiator. Brands can now generate personalised video ads that speak directly to audience segments, different languages, visuals, and value propositions, all without scaling video production teams. A skincare brand, for example, could automatically produce video ads showing tailored regimens for different skin types, increasing engagement by 40% or more.
Extending to the 7Ps: AI in Services Marketing
While the 4Ps remain foundational, the 7Ps are essential for service-driven industries.
People
AI-powered chatbots and virtual assistants support frontline staff, ensuring personalised, consistent service 24/7. They don’t replace human employees but augment their capacity, allowing staff to focus on complex, high-value interactions.
Process
In healthcare, AI streamlines processes like appointment scheduling and predictive triage. In financial services, it simplifies loan approvals or fraud detection. These improvements make customer journeys smoother and more predictable.
Physical Evidence
Physical cues such as packaging, store layout, or uniforms signal quality and trust. In 2025, sustainability is central: AI helps test packaging designs virtually to see which eco-friendly messages resonate, then rolls them out to targeted markets. Pairing this with VidAU-generated explainer videos enhances transparency, showing customers exactly how products align with their values.
Measuring AI-Personalised Marketing Mix with MMM
Personalisation is only valuable if it drives measurable results. This is where marketing mix modelling (MMM) comes into play.
MMM quantifies the contribution of each mix element, pricing, distribution, and promotions to overall sales. It works at an aggregate level, making it privacy-compliant in a cookieless world. Paired with multi-touch attribution (MTA), which analyses user-level data where available, businesses can get a fuller picture of performance.
AI accelerates this measurement by cleaning and processing large datasets, running simulations, and recommending budget reallocations in real time. Open-source tools such as Meta’s Robyn and Google’s Meridian are making MMM accessible to mid-market businesses, not just Fortune 500s.
Here again, VidAU plays a role in measurement by providing consistent, scalable content variations. This allows marketers to A/B test different video creatives quickly, feeding clean performance data into MMM models.
Case Studies in AI-Personalised Marketing Mix
- Retail: A global fashion brand used AI-powered product recommendations and personalised video promotions created with VidAU. Result: a 35% increase in conversion and a 20% reduction in returns.
- Travel: An airline applied AI pricing models with personalised fare explainers delivered via VidAU videos. Ticket yield rose by 18%.
- Healthcare: A telemedicine platform used AI chatbots for triage and VidAU-generated treatment explainers. This reduced patient no-show rates by 22%.
- Consumer Packaged Goods: A beverage company launched AI-personalised campaigns across 50 markets, producing localised VidAU video ads. Engagement tripled compared to static creative.
Conclusion
The marketing mix has always been about balance. But in 2025, balance requires real-time personalisation powered by AI. From dynamic product recommendations and elasticity-based pricing to unified commerce distribution and video-led promotions, every element of the mix can now adapt to the customer.
Businesses that embrace personalisation will see higher loyalty, better margins, and measurable impact. Those that stick to static strategies risk irrelevance.
Ready to bring personalisation into your marketing mix? Start with your promotions. Use VidAU’s text-to-video AI to create tailored video campaigns at scale, turning the Promotion P into your biggest competitive advantage.
Frequently Asked Questions
- What are the 4Ps of the marketing mix?
They are Product, Price, Place, and Promotion—the controllable levers of a go-to-market strategy. - What are the 7Ps?
An extension that adds People, Process, and Physical Evidence, especially relevant for services. - Why is the marketing mix important?
It ensures businesses align product, pricing, distribution, and promotion with customer needs and market goals. - What is marketing mix modelling?
A method of measuring how each element of the marketing mix contributes to sales and ROI. - How does AI change the marketing mix?
AI enables real-time personalisation across all Ps, from dynamic pricing to video-based promotions.
6. What’s the difference between marketing mix and promotional mix?
The promotional mix focuses only on communication strategies, while the marketing mix spans all 4Ps/7Ps.
