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ch5 3

This chapter discusses how digital media impacts the marketing mix, which consists of product, price, place, and promotion. It provides examples of how each element can be implemented online. For product, digital options allow for varying the core product, offering digital products, and speeding new product development. Pricing is more transparent online and pricing innovations include alternative structures. Distribution places include online purchase channels and virtual organizations. Promotion tools outlined include online advertising, selling, sales promotions, and public relations. The chapter also discusses people, processes, and physical evidence in digital marketing and provides a case study on how Spotify competes through its marketing mix approaches.

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74 views16 pages

ch5 3

This chapter discusses how digital media impacts the marketing mix, which consists of product, price, place, and promotion. It provides examples of how each element can be implemented online. For product, digital options allow for varying the core product, offering digital products, and speeding new product development. Pricing is more transparent online and pricing innovations include alternative structures. Distribution places include online purchase channels and virtual organizations. Promotion tools outlined include online advertising, selling, sales promotions, and public relations. The chapter also discusses people, processes, and physical evidence in digital marketing and provides a case study on how Spotify competes through its marketing mix approaches.

Uploaded by

Trang Bùi
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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Download as PPTX, PDF, TXT or read online on Scribd

DIGITAL MARKETING

STRATEGY, IMPLEMENTATION AND PRACTICE


Seventh Edition

Part 2
Digital marketing strategy
development

Chapter 5
Digital media and the
marketing mix

Copyright © 2019, 2016, 2012 Pearson Education, Inc. All Rights Reserved
Chapter 5 Digital media and the
marketing mix
Main topics:
• Product
• Price
• Place
• Promotion
• People, process and physical evidence

Case study: Spotify streaming


develops new revenue models

Copyright © 2019, 2016, 2012 Pearson Education, Inc. All Rights Reserved
What is the marketing mix?

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Product
Implications for digital technology for the product element
of the mix

1. Options for varying the core product


2. Options for offering digital products
3. Options for changing the extended product
4. Conducting online research
5. Speed of new product development
6. Speed of new product diffusion

Copyright © 2019, 2016, 2012 Pearson Education, Inc. All Rights Reserved
The long tail concept

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Branding in a digital environment

• Success factors for brand sites


• Brand identity
• Brand names for online brands

Copyright © 2019, 2016, 2012 Pearson Education, Inc. All Rights Reserved
Price
1. Increased price transparency
2. Downward pressure on price
3. Innovative pricing approaches
4. Alternative pricing structure or policies

Copyright © 2019, 2016, 2012 Pearson Education, Inc. All Rights Reserved
Price elasticity of demand

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Price elasticity of demand for a relatively
inelastic product

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Figure 5.6 Alternative pricing mechanisms

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Place

1. Place of purchase
2. New channel structures
3. Channel conflicts
4. Virtual organisations

Copyright © 2019, 2016, 2012 Pearson Education, Inc. All Rights Reserved
Promotion

Communications Tool Online implementation


Advertising Interactive display ads, pay-per-click search advertising, targeted ads in social
networks

Selling Virtual sales staff, site merchandising, assisted selling (including livechat) and affiliate
marketing

Sales promotion Incentives such as coupons, rewards, online loyalty schemes

Public relations Online PR and influencer outreach, blogs, e-newsletters, newsletters, social
networks, links and viral campaigns

Sponsorship Sponsoring an online event, site or service

Direct mail Opt-in email using e-newsletters and focused ‘solus’ emails

Exhibitions Webinars, virtual exhibitions and white-paper distribution

Merchandising Promotional ad-serving on retail sites, personalised recommendations and email


alerts

Packaging Virtual tours, real packaging displayed online

Word of mouth Social, viral, affiliate marketing, email a friend, links

Copyright © 2019, 2016, 2012 Pearson Education, Inc. All Rights Reserved
People Process and Physical evidence

People:

1. Customer define support query


2. Receipt of email and acknowledgement
3. Routing of emails
4. Compose response
5. Follow-up

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Process:

• Customer preferred channel


• Company -preferred channel
• Delivering customer services and assisted sales through
Livechat

Copyright © 2019, 2016, 2012 Pearson Education, Inc. All Rights Reserved
Physical evidence refers to:

A customer’s experience of the company through the web


site and other digital media.

Copyright © 2019, 2016, 2012 Pearson Education, Inc. All Rights Reserved
Case study: Spotify streaming develops
new revenue models
Question:
Assess how Spotify compete with traditional and online
music providers by reviewing the approaches it uses for
different elements of the marketing mix

Source: [Link]

Copyright © 2019, 2016, 2012 Pearson Education, Inc. All Rights Reserved

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