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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        Marketing        Digital
     changed
                 RIGHT INFORMATION    INSIGHT




                   RIGHT PEOPLE      TARGETING




                    RIGHT TIME         24/7
Introduction
    to Digital
                   “The digital world has not
   Insight 1:
Magnification      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
                                        Product

    What is it?
                     Price                                    Place




                                       Marketing
                  People                                      Promotion
                                         Mix




                                                   Physical
                             Process
                                                   Evidence
The
Marketing Mix
                    Development
Why is it useful?

                    Awareness



                       Trial



                      Usage



                      Repeat
The
Marketing Mix
                                         Product

           4+3
    for services      Price                                    Place




                                        Marketing
                   People                                      Promotion
                                          Mix




                                                    Physical
                              Process
                                                    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   Online Value Proposition

                  Brand


                Extended



                  Core
Core
Product

Definition
Extended
 Product

 Definition
Brand

Definition
Online Value
 Proposition
      (OVP)

    Definition
Product   Online Value Proposition

                  Brand


                Extended



                  Core
Core Product
                 Additional Information
       Digital
 Opportunities
                    Personalisation


                     Re-packaging


                       Research


                   Range Extension
Core Product

     Additional
   information
Core Product

Personalisation
Core Product

    Research
Product   Online Value Proposition

                  Brand


                Extended



                  Core
Extended
  Product       Additional products and services

      Digital
Opportunities         Credibility and Trust


                       Customer service


                           Warranties


                          Testimonies
Extended
 Product

 Additional
  Products
Extended
 Product

 Additional
  Services




              Free Delivery Worldwide
Brand   Online Value Proposition

                Brand


              Extended



                Core
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
               Quality of Experience
strong OVP
                   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
             “The place of digital purchase,
Definition   distribution and consumption”

                  Seller –controlled


                  Seller–orientated


                       Neutral


                  Buyer-orientated


                  Buyer-controlled
Place

Let go…




          …and enter the   conversation
Place
               Research Online Purchase Offline
The Death of
    the High
     Street?
                      CONCLUSION

                    Search engine
                   marketing critical
Place
                       Customer
Search Engine
    Marketing

                Be where your customers are:
                   • SEO
                   • Syndication
                   • Affiliation
                   • Sponsorship
                   • Localisation
                   • Mobile




                       Supplier
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   Low Price                 High Price
 price complex
                       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     Price   Relationship to perceived
                                        value?
Elasticity




                              Elastic




                                    Demand
Price     Price   Relationship to perceived
                                        value?
Elasticity




                             Inelastic




                                    Demand
Price

      Online    Opportunities      Threats
opportunities
 and threats
                 Differential     Transparency


                  Flexibility     Aggregators


                  Long tail     Online specialists


                 Breakdown      Commoditisation


                  Bundling          Auctions
Price

Opportunities:
    Bundling
Price

   Threats:
Aggregators
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
                 Advertising

     Online
execution of       Selling
promotional
       tools
               Sales Promotion


               Public Relations


                Sponsorship


                    eMail


                    Viral
Promotion
                 Advertising
     Online
execution of       Selling
promotional
       tools
               Sales Promotion


               Public Relations


                Sponsorship


                    eMail


                    Viral
Promotion

Advertising




              Google Adwords
Promotion
                 Advertising
     Online
execution of       Selling
promotional
       tools
               Sales Promotion


               Public Relations


                Sponsorship


                    eMail


                    Viral
Promotion

    Selling
Promotion
                 Advertising
     Online
execution of       Selling
promotional
       tools
               Sales Promotion


               Public Relations


                Sponsorship


                    eMail


                    Viral
Promotion

     Sales
 Promotion
Promotion
                 Advertising
     Online
execution of       Selling
promotional
       tools
               Sales Promotion


               Public Relations


                Sponsorship


                    eMail


                    Viral
Promotion

     Public
  Relations
Promotion
                 Advertising
     Online
execution of       Selling
promotional
       tools
               Sales Promotion


               Public Relations


                Sponsorship


                    eMail


                    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
                    Autoresponders

    Delivering
online service     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
                           Web site design
 Evidence

     On-line           Awards and endorsements
reassurance
                           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
In         Digital just another channel
Summary
              The idea drives the technology


               Customer insight remains key


               Digital provides amplification


          Marketing mix a lens to analyse strategy


                   People still important




                       Does it SELL
Suggested    Adamson, AP. (2008) Brand Digital. Palgrave Macmillan
  Reading
             Chaffey, D. and Chadwick, FE. (2012) Digital Marketing:
      List   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

e: adam@waypointdigitalmarketing.com

   w: waypointdigitalmarketing.com

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The Internet and the Digital Marketing Mix

  • 1. The Internet and the Marketing Mix Applying the marketing mix in an online context Adam Richards
  • 2. Agenda Introduction to Digital The Marketing Mix Product Place Price Promotion People, Process, Physical Evidence Summary
  • 3. Agenda Introduction to Digital The Marketing Mix Product Place Price Promotion People, Process, Physical Evidence Summary
  • 4. Introduction to Digital Nothing has changed Digital just another channel
  • 5. Introduction to Digital Nothing has Marketing Digital changed RIGHT INFORMATION INSIGHT RIGHT PEOPLE TARGETING RIGHT TIME 24/7
  • 6. Introduction to Digital “The digital world has not Insight 1: Magnification 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
  • 7. Introduction to Digital Insight 2: Two-way street “Digital tools have become virtual water coolers” Allen Adamson: Author of Brand Digital
  • 8. Agenda Introduction to Digital The Marketing Mix Product Place Price Promotion People, Process, Physical Evidence Summary
  • 9. The Marketing Mix Product What is it? Price Place Marketing People Promotion Mix Physical Process Evidence
  • 10. The Marketing Mix Development Why is it useful? Awareness Trial Usage Repeat
  • 11. The Marketing Mix Product 4+3 for services Price Place Marketing People Promotion Mix Physical Process Evidence
  • 12. 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
  • 13. Agenda Introduction to Digital The Marketing Mix Product Place Price Promotion People, Process, Physical Evidence Summary
  • 14. Product Online Value Proposition Brand Extended Core
  • 18. Online Value Proposition (OVP) Definition
  • 19. Product Online Value Proposition Brand Extended Core
  • 20. Core Product Additional Information Digital Opportunities Personalisation Re-packaging Research Range Extension
  • 21. Core Product Additional information
  • 23. Core Product Research
  • 24. Product Online Value Proposition Brand Extended Core
  • 25. Extended Product Additional products and services Digital Opportunities Credibility and Trust Customer service Warranties Testimonies
  • 27. Extended Product Additional Services Free Delivery Worldwide
  • 28. Brand Online Value Proposition Brand Extended Core
  • 29. Brand “The mental perceptions that surface when you hear about a product or service” Allen Adamson – Author of Brand Digital
  • 30. Brand
  • 31. 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
  • 32.
  • 33.
  • 34. Building a Quality of Experience strong OVP Interactivity Customisation Design Relevance Innovation Does it SELL
  • 35. Brand Final Thought Does the Internet dilute the power of brands?
  • 36. Agenda Introduction to Digital The Marketing Mix Product Place Price Promotion People, Process, Physical Evidence Summary
  • 37. Place “The place of digital purchase, Definition distribution and consumption” Seller –controlled Seller–orientated Neutral Buyer-orientated Buyer-controlled
  • 38. Place Let go… …and enter the conversation
  • 39. Place Research Online Purchase Offline The Death of the High Street? CONCLUSION Search engine marketing critical
  • 40. Place Customer Search Engine Marketing Be where your customers are: • SEO • Syndication • Affiliation • Sponsorship • Localisation • Mobile Supplier
  • 41.
  • 42.
  • 43. Agenda Introduction to Digital The Marketing Mix Product Place Price Promotion People, Process, Physical Evidence Summary
  • 44. Price Definition “A value that will purchase a finite quantity, weight, or other measure of a good or service.” BusinessDictionery.com
  • 45. Price Relationship to Low Price High Price price complex Commodity Brand Common Differentiated Cheap Expensive Unremarkable Special The rest Me
  • 47. Price Opportunities and threats Is the Internet a downward pressure on pricing or an opportunity to charge more?
  • 48. Price Price Relationship to perceived value? Elasticity Elastic Demand
  • 49. Price Price Relationship to perceived value? Elasticity Inelastic Demand
  • 50. Price Online Opportunities Threats opportunities and threats Differential Transparency Flexibility Aggregators Long tail Online specialists Breakdown Commoditisation Bundling Auctions
  • 52. Price Threats: Aggregators
  • 53. Agenda Introduction to Digital The Marketing Mix Product Place Price Promotion People, Process, Physical Evidence Summary
  • 54. 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
  • 56. Promotion Targeted Digital Shadow
  • 57. Promotion Advertising Online execution of Selling promotional tools Sales Promotion Public Relations Sponsorship eMail Viral
  • 58. Promotion Advertising Online execution of Selling promotional tools Sales Promotion Public Relations Sponsorship eMail Viral
  • 59. Promotion Advertising Google Adwords
  • 60. Promotion Advertising Online execution of Selling promotional tools Sales Promotion Public Relations Sponsorship eMail Viral
  • 61. Promotion Selling
  • 62. Promotion Advertising Online execution of Selling promotional tools Sales Promotion Public Relations Sponsorship eMail Viral
  • 63. Promotion Sales Promotion
  • 64. Promotion Advertising Online execution of Selling promotional tools Sales Promotion Public Relations Sponsorship eMail Viral
  • 65. Promotion Public Relations
  • 66. Promotion Advertising Online execution of Selling promotional tools Sales Promotion Public Relations Sponsorship eMail Viral
  • 67. Promotion Viral Video Nearly 5 million views
  • 68. Agenda Introduction to Digital The Marketing Mix Product Place Price Promotion People, Process, Physical Evidence Summary
  • 69. People Balance with automation Happy Staff = Happy Customers
  • 70. People Autoresponders Delivering online service eMail notification Call back facility Real-time live chat Virtual assistants On-site search engines Ask and answer
  • 71. 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
  • 72. Process Balance with cost and efficiency Automation = Cost-Effective
  • 73. 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
  • 74. Physical Web site design Evidence On-line Awards and endorsements reassurance 3rd party reviews Refund policies Printable coupons Merging the off and online worlds
  • 75. Agenda Introduction to Digital The Marketing Mix Product Place Price Promotion People, Process, Physical Evidence Summary
  • 76. In Digital just another channel Summary The idea drives the technology Customer insight remains key Digital provides amplification Marketing mix a lens to analyse strategy People still important Does it SELL
  • 77. Suggested Adamson, AP. (2008) Brand Digital. Palgrave Macmillan Reading Chaffey, D. and Chadwick, FE. (2012) Digital Marketing: List 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
  • 78. Adam Richards e: adam@waypointdigitalmarketing.com w: waypointdigitalmarketing.com