internet and mkt mix
DESCRIPTION
New perspective of digital Mkt mixTRANSCRIPT
The Internet and the
Marketing Mix
Applying the marketing mix in an online
context
Adam Richards
Agenda Introduction to Digital
The Marketing Mix
Product
Place
Price
Promotion
People, Process,
Physical Evidence
Summary
Agenda Introduction to Digital
The Marketing Mix
Product
Place
Price
Promotion
People, Process,
Physical Evidence
Summary
Introduction
to Digital
Nothing has changed
Digital just another channel
Introduction
to Digital
Nothing has
changed
RIGHT INFORMATION
RIGHT PEOPLE
RIGHT TIME
INSIGHT
TARGETING
24/7
Marketing Digital
Introduction
to Digital
Insight 1:
Magnification
“The digital world has not
changed the principles of
marketing but rather has
magnified everything we
know to be true about building
a great brand.”
Charlie Wrench: Chairman of Landor Associates
Introduction
to Digital
Insight 2:
Two-way street “Digital tools have become
virtual water coolers”
Allen Adamson: Author of Brand Digital
Agenda Introduction to Digital
The Marketing Mix
Product
Place
Price
Promotion
People, Process,
Physical Evidence
Summary
The
Marketing Mix
What is it?
Marketing
Mix
Product
Place Price
People
Process
Promotion
Physical
Evidence
The
Marketing Mix
Why is it useful?
Development
Awareness
Trial
Usage
Repeat
The
Marketing Mix
4 + 3
for services
Marketing
Mix
Product
Place Price
People
Process
Promotion
Physical
Evidence
The
Marketing
Mix
“A marketer is like a chef in a
kitchen…
…a mixer of ingredients”
Robert Bartels: Author of The History of Marketing Thought
Agenda Introduction to Digital
The Marketing Mix
Product
Place
Price
Promotion
People, Process,
Physical Evidence
Summary
Product
Core
Extended
Brand
Online Value Proposition
Brand
Definition
Product
Core
Extended
Brand
Online Value Proposition
Core Product
Digital
Opportunities
Additional Information
Personalisation
Re-packaging
Research
Range Extension
Core Product
Additional
information
Product
Core
Extended
Brand
Online Value Proposition
Extended
Product
Digital
Opportunities
Additional products and services
Credibility and Trust
Customer service
Warranties
Testimonies
Extended
Product
Additional
Products
Extended
Product
Additional
Services
Free Delivery Worldwide
Brand
Core
Extended
Brand
Online Value Proposition
Brand
“The mental perceptions that
surface when you hear about a
product or service”
Allen Adamson – Author of Brand Digital
Brand
Online
Value
Proposition
“The OVP should encompass
the complete experience of
selecting, buying and using the
product or service.”
Chaffey and Smith – Authors of eMarketing
eXcellence
Building a
strong OVP
Quality of Experience
Interactivity
Customisation
Design
Relevance
Innovation
Does it SELL
Brand
Final Thought
Does the Internet dilute the
power of brands?
Agenda Introduction to Digital
The Marketing Mix
Product
Place
Price
Promotion
People, Process,
Physical Evidence
Summary
Place
Definition
“The place of digital purchase,
distribution and consumption”
Seller –controlled
Seller–orientated
Neutral
Buyer-orientated
Buyer-controlled
Place
The Death of
the High
Street?
Research Online Purchase Offline
CONCLUSION
Search engine
marketing critical
Place
Search Engine
Marketing
Customer
Supplier
Be where your customers are:
• SEO
• Syndication
• Affiliation
• Sponsorship
• Localisation
• Mobile
Agenda Introduction to Digital
The Marketing Mix
Product
Place
Price
Promotion
People, Process,
Physical Evidence
Summary
Price
Definition
“A value that will purchase a
finite quantity, weight, or other
measure of a good or service.”
BusinessDictionery.com
Price
Relationship to
price complex
Low Price High Price
Commodity Brand
Common Differentiated
Cheap Expensive
Unremarkable Special
The rest Me
Price
Perception of
value
Price
Opportunities
and threats
Is the Internet a downward
pressure on pricing or an
opportunity to charge more?
Price
Elasticity
Demand
Price
Elastic
Relationship to perceived
value?
Price
Elasticity
Demand
Price
Inelastic
Relationship to perceived
value?
Price
Online
opportunities
and threats
Opportunities Threats
Differential Transparency
Flexibility Aggregators
Long tail Online specialists
Breakdown Commoditisation
Bundling Auctions
Agenda Introduction to Digital
The Marketing Mix
Product
Place
Price
Promotion
People, Process,
Physical Evidence
Summary
Promotion
Definition
“How marketing communications
are used to inform customers and
stakeholders about an
organisation and its products.”
Chaffey and Chadwick – Authors of Digital Marketing:
Strategy, Implementation and Practice
Promotion
One to many
Broadcast
Promotion
Targeted
Digital Shadow
Promotion
Online
execution of
promotional
tools
Advertising
Selling
Sales Promotion
Public Relations
Sponsorship
Viral
Promotion
Online
execution of
promotional
tools
Advertising
Selling
Sales Promotion
Public Relations
Sponsorship
Viral
Promotion
Online
execution of
promotional
tools
Advertising
Selling
Sales Promotion
Public Relations
Sponsorship
Viral
Promotion
Selling
Promotion
Online
execution of
promotional
tools
Advertising
Selling
Sales Promotion
Public Relations
Sponsorship
Viral
Promotion
Sales
Promotion
Promotion
Online
execution of
promotional
tools
Advertising
Selling
Sales Promotion
Public Relations
Sponsorship
Viral
Promotion
Public
Relations
Promotion
Online
execution of
promotional
tools
Advertising
Selling
Sales Promotion
Public Relations
Sponsorship
Viral
Promotion
Viral Video
Nearly 5 million views
Agenda Introduction to Digital
The Marketing Mix
Product
Place
Price
Promotion
People, Process,
Physical Evidence
Summary
People
Balance with
automation
Happy Staff = Happy Customers
People
Delivering
online service
Autoresponders
eMail notification
Call back facility
Real-time live chat
Virtual assistants
On-site search engines
Ask and answer
Process
Definition
“The methods and procedures
companies use to achieve all of
the marketing functions.”
Chaffey and Chadwick – Authors of Digital Marketing:
Strategy, Implementation and Practice
Process
Balance with
cost and
efficiency
Automation = Cost-Effective
Physical
Evidence
Definition
“The tangible expression of a
product or service and how it is
purchased and used.”
Chaffey and Chadwick – Authors of Digital
Marketing: Strategy, Implementation and
Practice
Physical
Evidence
On-line
reassurance
Web site design
Awards and endorsements
3rd party reviews
Refund policies
Printable coupons
Merging the off and online worlds
Agenda Introduction to Digital
The Marketing Mix
Product
Place
Price
Promotion
People, Process,
Physical Evidence
Summary
Digital just another channel
The idea drives the technology
Marketing mix a lens to analyse strategy
People still important
Does it SELL
In
Summary
Customer insight remains key
Digital provides amplification
Suggested
Reading
List
Adamson, AP. (2008) Brand Digital. Palgrave Macmillan
Chaffey, D. and Chadwick, FE. (2012) Digital Marketing:
Strategy, Implementation and Practice. 5th ed. Pearson
Chaffey, D. Smith, PR. (2012) eMarketing eXcellence.
Planning and optimizing your digital marketing. 3rd ed. Oxford:
Routledge
Stone, MA. and Desmond, J. (2007) The Fundamentals of
Marketing. Oxford: Routledge
Sweeney, CA. MacLellan, A. Dorey, E (2007) 3G Marketing on
the Internet. Maximum Press
Adam Richards
w: waypointdigitalmarketing.com