1 2 Chapter Remix The digital world affects every

Transcript:1 2 Chapter Remix The digital world affects every:
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. 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 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 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 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 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 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