1 2 Chapter Remix The digital world affects every aspect of business, every aspect of marketing and every aspect of the marketing mix. Some argue that physical distribution, selling and pricing absorb the biggest impact. In fact, all the
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1 2 Chapter Remix The digital world affects every aspect of business, every aspect of marketing and every aspect of the marketing mix. Some argue that physical distribution, selling and pricing absorb the biggest impact. In fact, all the elements of the marketing mix are affected by this new world. This chapter shows you exactly how to evaluate the options for varying your organization’s marketing mix.<br>
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2 2.1 Introduction to remix The digital marketing mix is changing Products become services
Customers create communities that extend the brand into new online experiences Figure 2.1 The 7Ps of the classic marketing mix<br>
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3 2.2 What is the marketing mix? Product
Price
Place
Promotion
People
Processes
Physical evidence 7Ps Booms & Bitner (1981) = 5Is Pepper & Roger (1981) Identification
Individualization
Interaction
Integration
Integrity 4Cs Lautenborn (1990) + Customer needs & wants
Cost to the customer
Convenience
Communication 4Es Rothery (2008) Experience
Every place
Exchange
Evangelism Stick to customers
Listen to them using social media
Lead marketing research to learn what they need
Supply it better than the competition by mixing the right mix<br>
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4 2.2 What is the marketing mix? + Figure 2.2 Revoo consumer product rating site
Source: www.revoo.com Figure 2.3 bizrate.co.uk online shopping comparison site
Source: www.Bizrate.co.uk<br>
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5 2.3 Beyond the mix Marketers need to know how to manage alliances The choice of mix should help grow relationships Keep customers happy for life
Make strategic alliances and partnerships
Supply chain management – sharing data, systems and budgets
Relationship between buyer and supplier
Consolidation
Commoditization<br>
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6 2.4 The mix is morphing Social media platforms Enhances the product experience – Product
Promotes the brand – Promotions
Spreads the accessibility of a brand – Place
Brand dependent on well-trained teams – People
Crystal-clear systems and processes - Processes Apps and widgets Improve the customer experience – Product
Deliver the experience wherever you are – Place
Promote the product simultaneously – Promotion MERGE<br>
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7 2.5 Product Adding digital value to products Ghosh (1998) Can I afford additional information or transaction services for my existing customer base?
Can I address the needs of new customer segments by repacking my current information assets or by creating new business propositions using the Internet?
Can I use my ability to attract customers to generate new sources of revenue such as advertising or sales of complementary products?
Will my current business be significantly harmed by other companies providing some of the value I currently offer? Digital products offer interaction and engagement.<br>
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8 2.5 Product How can I move from the code product? The Extended Product Quality and Credibility Endorsements
Awards
Testimonies
Customer lists and numbers
Customer comments
Warranties
Guarantees Money-back offers
White papers
Staff photographs
Social proof such as a number of subscribers, circlers, fans or followers on social networks Don’t forget to continuously analyse the competition<br>
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9 2.5 Product Consistent CX = Offline Value Proposition
= Online Value Proposition Reinforces core brand values
Clearly summarizes what a customer can get from you that they cannot get elsewhere The OVP should encompass the complete experience of selecting, buying and using the product or service<br>
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10 2.6 Price New buying processes require new pricing approaches Subscription
Pay Per View
Bundling
Ad-supported content Under pressure because of… Commoditization leading to reserve auctions
Price transparency Basic price
Discounts
Add-ons and extra products and services
Guarantees and warranties
Refund and return policies
Order cancellation terms
Revoke action buttons Remember to monitor your price<br>
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11 2.7 Place Place Promotion Organizations that extend their presence online with links from other sites Ads (promotion) follow customers online (place) Placing ads in front of people who have already expressed an interest in your business Figure 2.16 Alternative representation locations for online purchases Which place?<br>
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12 2.7 Place Place Promotion Organizations that extend their presence online with links from other sites New distribution models Disintermediation
Reintermediation
Infomediation
Channel confluence
Peer-to-peer services
Affiliation
Group purchasing<br>
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13 2.8 Promotion<br>
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14 2.8 Promotion Six key promotion issues Promotional Mix
Integration
Creativity
Interaction
Globalization
Resourcing<br>
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15 2.9 People Happy Staff = Happy Customers = Happy Shareholders 90% of your website should be designed to service customers Auto-responders
Email/text alert
Call-back facility
Real-time live chat
FAQ Ask and answer services
Co-browsing
Virtual assistants
Customer reviewers and assistants
Tailored customer landing pages Challenges People vs Automation
Keeping content fresh
Training and resourcing<br>
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16 2.10 Physical evidence As services online are intangible, customers look for reassurance on quality Ratings and reviews
Guarantees
Refund policies
Security icons
Trade and professional body memberships
Awards
Customer lists
Customer endorsements
Third party/institutional endorsements
International Standards (ISO) Independent reviews
News clippings
Ethnical policies
Community links
Full address and contact details
Text only version
Error-free
Customer endorsements
Reliable response systems Reasons why people come back to a site High-quality content
Ease of use Quick download
Frequently updated content<br>
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17 2.11 Process Refers to the internal and sometimes external processes, transactions and internal communications that are required to run a business Digital Marketing Products Morph into Services Simultaneity in production and consumption Optimizing internal and external processes is essential<br>
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18 2.12 an extra ‘P’ - partnerships Partnerships need to be identified, recruited and nurtured for success e.g. of partnerships : Ford, Tesco and AOL MUtv, Sky and Century Radio
Live 8 and O2<br>
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19 Chapter summary Re-examine marketing mix for the digital world.
Relationship building and service quality are vital
The mix is much more dynamic today
Product– can be extended online through new information-based services and interaction with the brand.
Price – reduction in market prices and changes in purchase, distribution and usage of products affect price
Promotion – online options
People – service quality is a key differentiator online and offline.
Physical evidence – a well-designed site.
Process – front- and back-office systems
Partnerships – can be potent but need experienced management.<br>