How digital tools Are changing marketing mix in detail product promotion price place
Decode the digital marketing mix by understanding its history and dissecting its various elements. The concept of a marketing mix has come a long way since its inception in the first half of the 20th century. The digitization of just about everything has turned the marketing world on its head, sending traditionalist marketers scrambling to reeducate themselves and adjust to shifting market conditions. Show
In this article, we’ll start at the marketing mix’s genesis, discuss its development, and apply both old and new principles to the digital marketplace. What Is a Marketing Mix?A marketing mix represents an amalgamation of various ingredients to create a cohesive marketing strategy. The traditional marketing mix remains well-known to businessmen, marketers, and marketing students. That mix is the 4 P’s laid out by E. Jerome McCarthy in his seminal work, Basic Marketing: A Managerial Approach (1960). The 4 P’s are:
McCarthy’s condensation of the so-called marketing mix predates the formal coining of the term by N.H. Borden in a 1964 article published in the Journal of Advertising Research, “The Concept of the Marketing Mix.” However, it is well-documented that Borden used the term frequently in the 1950s before putting it into print, including during a 1953 address as president of the American Marketing Association. Additionally, several other important developments that led to McCarthy’s 4 P’s bear mentioning. Dawn of the Marketing MixOver a decade before the emergence of modern marketing, James Culliton described the job of a marketing manager as the “mixer of ingredients” in his work, The Management of Marketing Costs (1948). This piece served as the forerunner to McCarthy’s 4 P’s and Borden’s “marketing mix.” Borden laid out the 12 components of the marketing mix as follows:
Needless to say, McCarthy’s simplified 4 P’s won the day over Borden’s unwieldy 12-point analysis. Take a look at the traditional marketing mix, in the form of the 4 P’s, before delving into the more recent paradigm shifts that have occurred in the field of marketing. ProductA product represents something that meets consumers’ needs or desires. Within the context of the traditional marketing mix, both goods and services meet the criteria of a product. When it comes to products, marketers must think about a variety of aspects:
PriceThe price encompasses either the monetary value consumers will pay for the product or the time and effort put in to acquire the product. Perceived value on the part of the consumer also factors into the price. Considerations surrounding the price include
PlaceThe place refers to where consumers can acquire a company’s product. The more convenient it is for consumers to find and purchase a product, the more likely it is that a sale will be made. Marketers must factor in multiple considerations:
PromotionPromotion refers to communication with the consumer. Marketing communications may include advertising, direct marketing, public relations, and more. Marketers must consider multiple elements:
Evolution of the Digital Marketing MixIn the early 1980s, Bernard Booms and Mary Bitner expanded the 4 P’s into the 7 P’s by adding “people,” “process,” and “physical evidence.” Although the term “digital marketing” did not originate until the 1990s, the contribution of Booms and Bitner modernized the marketing mix in a way that would allow for the incorporation of digital marketing into the traditional paradigm. The emergence of digital marketing for tangible products would soon usher in online marketing for intangible, wholly online products. Indeed, online marketing represents a subset of digital marketing. When reading the following explanations of the 7 P’s as they apply to digital and online promotion, note the similarities and differences of the digital marketing mix to the online marketing mix. ProductIn a digital marketing mix, the product may be tangible (physical goods) or intangible (services). But, in an online marketing mix, the product must remain intangible and deliverable over the internet, regardless of whether it is a good (software) or service (online therapy session). Whereas the creation of the product may occur offline in a digital marketing mix, all activities surrounding the product must take place online in an online promotional mix. For example, a fidget spinner can fit into a digital marketing mix, but not an online marketing mix. An expansion pack for your favorite video game could fit into either mix. Focus on the ConsumerRegardless of whether a company develops a general digital marketing mix or the more specific online marketing mix, the end-user warrants much consideration. A business must identify a need or desire and meet it with a new product. Because the vast majority of new companies fail, it’s imperative that a determination be made regarding whether consumers actually need or want the product. Hoping to catch lightning in a bottle does not represent a viable product development strategy. Product Questions That Need AnswersBefore a company takes a product to market, there exist a number of questions that require answers. Answering the following questions will go a long way toward accurately estimating the success of a product, whether it exists physically or online:
PriceFor the digital marketing mix and the online marketing mix, the price of a product goes beyond the amount of money paid for it. In both cases, the purchase of a product requires the consumer to sacrifice time and effort. For example, in many cases, a consumer must register online, supply information, find the product, and check out. In the case of a wholly online product, the consumer must also download it. Requiring too much non-monetary sacrifice on the part of the consumer can lead to decreased sales. Opportunity CostBusinesses must view their selling proposition from the perspective of the consumer. And that includes opportunity cost. For instance, a business may market a superior product at a slightly lower price than its competitors’ inferior products. But if consumers must jump through a bunch of hoops or wait an extended period of time to acquire the business’s superior product, they may decide that purchasing an inferior product for a few dollars more makes sense based on the money value of time. Online Pricing ComparisonBusinesses must weigh several factors when pricing their products online. For one, consumers now have more information at their fingertips than ever and demonstrate a significant willingness to compare prices online. So, a competitive price takes precedence in most cases. When deciding the online price of a product, a business should consider competitors’ prices, along with market share, brand value, cost of materials, labor costs, and how consumers view the product in terms of its value. Lower Overhead Allows for Reduced PricesWhereas digital marketing of tangible products must account for higher overhead related to manufacturing, warehousing, and transportation, online marketing of intangible products delivered over the internet does not. This allows for lower prices and a better value in the eyes of consumers. As a result, such businesses may enjoy a competitive advantage. Automated Real-time Price AdjustmentsOne advancement that has improved in what is the digital marketing mix and what is the online marketing mix comes in the form of automated price updates. For example, a jewelry company may employ automated price adjustments that shift with the change in the price of gold. As the price of gold increases, so does the price of the product. Another example that has recently emerged involves the changing value of the form of payment. For instance, a company that accepts cryptocurrency as payment may use automated price updates to account for the fluctuation in the value of a cryptocurrency relative to the dollar. If the relative value of a given cryptocurrency increases, the product’s price decreases and vice versa. Pricing Questions That Need AnswersWhen deciding on a price for a product, a business must answer important questions. Some of these questions to consider:
Pricing StrategiesDeveloping the right pricing strategy for an online product remains crucial. Some common strategies include:
PlaceWith a digital marketing mix, the places where consumers can purchase your product may include a brick-and-mortar store, an online store, a third-party vendor, and more. With an online marketing mix, all available channels exist on the internet. But that doesn’t mean online marketing options remain limited as to place. Countless channels exist online for online products. Relationship to PlacesFor better or worse, digital and online marketing mixes must develop a business’s relationship to various places frequented by consumers. Examples include:
Accessibility of PlacesTo compete in today’s market, a business must make sure its product remains highly visible online. Consumers can now make purchases in the wee hours of the night. So, companies need to maintain a presence in as many channels as possible, 24 hours a day. Here are some common channels:
Integrated MarketingA business should employ a shotgun approach to choosing places to market its product. Relying on a single channel may work for a short time, but everything can fall apart if one little glitch occurs. By diversifying the channels used, a business reaches a larger audience and hedges against the failure of one or two channels. Another benefit of channel diversification is the ability to integrate the channels used in a marketing campaign. For example, a business’s Google ad buy can link to the company’s latest Instagram post, which in turn links to a tweet on Twitter, which links to an Amazon product listing, creating a web of integrated marketing that’s more likely to capture new business. PromotionFor many business owners, promotion represents the most exciting of the 4 P’s. Some companies overemphasize promotion while all but ignoring the other P’s. The result is a smaller market share. When deciding how to best promote a product through a digital or online marketing mix, businesses may consider using multiple methods:
Technological Advances in CommunicationDigital and online marketing mixes are evolving to become custom-tailored to the end-users. Businesses can divide up the market in far more ways than was possible in the past. For example, companies can promote their products according to the consumers’ hardware and software uses:
This allows a company’s analytics team to review which promotional campaigns worked the best in the past so the marketing team can devise a stronger strategy for the future. Which Channels to Use for PromotionWhen developing a digital or online marketing mix, a business must focus on which channels present the highest likelihood of success. A business can not promote on every available channel at the same time unless it’s one of the biggest companies in its respective industry. So, most likely, a company must arrive at decision by picking and choosing from the following non-exhaustive list:
PeopleWe’ve finally arrived at the newest three P’s of the modern digital marketing mix, starting with people. Businesses need good people with great personalities to handle distribution and maintain relationships with customers. For an online company, customer service plays an important role in the success of the business. Channels in which a company can build relationships between its personnel and its customers while providing excellent customer service include:
A business must develop a strategy to keep its staff engaged with the consumer to maintain customer satisfaction. Failure to do so could result in a shrinking market share and a loss of profitability. ProcessCompanies should constantly explore ways in which they can optimize their various processes to provide a seamless user experience. A streamlined process benefits both company personnel and the consumer. To do this, a company must dedicate time and resources to data analytics in order to uncover inefficiencies and strengthen the processes that have proven effective. Of course, there needs to be data to analyze. So, businesses must keep detailed records of every marketing campaign, customer transaction, product return, customer service result, and more. What diligent business owners discover is that they can identify defective elements in their marketing processes before those elements negatively impact the bottom line. Physical EvidenceIn the traditional sense, physical evidence means a reassuring brick-and-mortar presence with decor, amenities, and friendly, knowledgeable staff. Obviously, this is not possible in a digital setting, but online evidence still plays a major role in gaining the trust of a target market. Some of the ways a business can show physical evidence in an online setting include:
Marketing Mix ChecklistTo wrap everything up, take a look at our Marketing Mix Checklist to make sure your business is doing everything it can to grow its market share.
Did we miss an important element of how to create a digital marketing mix? Let us know in the comments, and we’ll add your suggestion to the article during our next update.
This is Not Your Typical Digital Marketing Agency. How does digital marketing affect marketing mix?Digital media has had the following direct impacts on the marketing mix: Advertising recognition and avoidance: Many digital streams have advertisement blockers or allow users to opt out of seeing certain ads. Companies must develop methods to advertise despite these obstacles.
How digital tools are changing marketing in general?Digital marketing has made interactivity with the audience easier and faster, gaining the trust of the audience and publicity to enhance the prospects. The companies enjoy unprecedented growth in their business with global reach marketing through digital marketing strategies.
How has digital media affected the pricing of products?Because internet-only retailers can operate at lower pricing levels than those with both a store and online presence, this allows internet-only retailers to price their products lower. This, in turn, affects the brands with both types of retail options to have to price their products lower.
How the 4Ps are used in digital marketing?The four Ps are a “marketing mix” comprised of four key elements—product, price, place, and promotion—used when marketing a product or service. Typically, businesses consider the four Ps when creating marketing plans and strategies to effectively market to their target audience.
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