UNIT 1 INTRODUCTION to Digital Marketing

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

What is
Marketing Mix
The marketing mix – widely referred to as the 4Ps of Product, Price,
Place and Promotion – was originally proposed by Jerome McCarthy
(1960).
The popularity of the mix as a guide for the application of marketing
techniques is driven by the apparent simplicity of the framework.
 However, in the 1980s the 4Ps was challenged for not referencing the
importance of customer service.
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What is Marketing Mix
The result was that the mix was extended to 7Ps, which includes three
further elements (the service mix) that better reflect service delivery:
People, Process and Physical evidence.
Marketing mix The series of seven key variables )Product, Price, Place,
Promotion, People, Process and Physical evidence( that are varied by
marketers as part of the customer offering.
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What is the marketing mix?

Since the 1990s there have been more changes in marketing thinking
and research and the outcome has been a shift in emphasis in the
application of the marketing mix towards the development of
relationship building.
Lautenborn suggested the 4Cs framework, which considers the 4Ps
from a customer perspective. In brief, the 4Cs are:
Customer needs and wants (from the product);
Cost to the customer (price);
Convenience (relative to place);
Communication (promotion).
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Digital media and technology provide many new opportunities for the
marketer:
1. to vary the application of the marketing mix;
2. to develop new routes to delivering competitive advantage;
3. to create new market positions;
4. to build and service relationships in increasingly innovative ways;
5. to cut through the barriers of time and space and offer continuous
and instantaneous access to products and services.
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Product
The product variable of the marketing mix refers to characteristics of a
product, and has implications for service or branding.
Product decisions should be informed by market research where
customers’ needs are assessed, and the feedback is used to modify
existing products or develop new products.
Product variable: The element of the marketing mix that involves
researching customers’ needs, developing appropriate products and
communicating their features and benefits.
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Product
There are many alternatives for varying the product in the online
context when a company is developing its digital strategy; product
decisions can usefully be divided into decisions affecting the core
product and the extended product.
Core product: The fundamental features of the product that meet the
user’s needs.
Extended product: Additional features and benefits beyond the core
product.
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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

Price
Price variable The element of the marketing mix that involves defining
product prices and pricing models which ultimately differentiate a brand.
Pricing models Describe the form of payment, such as outright purchase,
auction, rental, volume purchases and credit terms.
The Internet has implications for pricing in many sectors.
Original research suggested two approaches commonly adopted for pricing
online:
1.start-up companies have tended to use low prices to gain a customer
base
2.existing companies just transferred their existing prices to the web
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Price
However, as organisations are increasingly developing multichannel
strategies in order to give their customers more opportunities to interact
with brands, it becomes more difficult to justify online and offline pricing
policies, especially in consumer markets.
For companies selling goods and services, it is becoming harder to
legitimise differential online pricing as this can reduce buyer confidence
and trust.
The Pricing element of the mix invariably relates to the Product element
(even when the offer is a service), since online pricing depends on the
range of products offered and the point at which a product is in its
lifecycle.
Extending the product range may allow these products to be discounted
online.
Some organizations have launched new product online that have a
lower Price element.
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Price
1. Increased price transparency
2. Downward pressure on price
3. Innovative pricing approaches
4. Alternative pricing structure or policies

Place
Place variable: The element of the marketing mix that involves
distributing products to customers in line with demand and minimising
cost of inventory, transport and storage.
Typically, for offline channels, the aim of Place is to maximise the reach
of distribution to achieve widespread availability of products while
minimising the costs of inventory, trans-port and storage.
In an online context, thanks to ease of navigating from one site to
another, the scope of Place is less clear since Place also relates to
Promotion and Partnerships.
Successful retailers are those that maximise their representation or
visibility on third-party sites that are used by their target audiences.
These third-party sites will include search engines, online portals
reviewing mobile phones and product comparison sites.
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Place
1. Place of purchase
2. New channel structures
3. Channel conflicts
4. Virtual organisations

Promotion
Promotion variable: The element of the marketing mix that involves
communication with customers and other stakeholders to inform them
about the product and the organisation.
The Internet and digital marketing techniques are highly important and
have significant implications for marketing communication planning.
‘Good communications are the lifeblood of successful market-
orientated companies and their brands. But creating good
communications presents many challenges’.
Digital technology is changing the way individuals and business
communicate, the channels through which they communicate and the
number of touchpoints encountered.
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Promotion
Modern businesses are developing more integrated approaches
towards the use of communications tools in order to maximise the
opportunities to deliver messages to their target audiences.
Specification of the Promotion element of the mix is usually part of a
communications strategy.
This will include selection of target markets, positioning and
integration of different communications tools.
The Internet offers a new, additional marketing communications
channel to inform customers of the benefits of a product and assist in
the buying decision.
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Promotion
Here are some different approaches for looking at how the Internet can
be used to vary the Promotion element of the mix:
1. Reviewing new ways of applying each of the elements of the
communications mix: advertising, sales promotions, PR and direct
marketing;
2. Assessing how the internet can be used at different stages of the
buying process;
3. Using promotional tools to assist in different stages of customer
relationship management, from customer acquisition to retention. In a
web context this includes gaining initial visitors to the site and gaining
repeat visits using a number of communications techniques:
• reminders in traditional media campaigns of why a site is worth visiting
• direct email reminders of site proposition
• frequently updated content
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Promotion
The Promotion element of a marketing plan also requires three
important decisions about investment for the online promotion or the
online communications mix:
1. Investment in site promotion compared to site creation and
maintenance.
2. Investment in online promotion techniques in comparison to offline
promotion. Typically, offline promotion investment often exceeds
that for online promotion investment. For existing companies,
traditional media such as print are used to advertise the sites, while
print and TV will also be widely used by dot.com companies to drive
traffic to their sites.
3. Investment in different online promotion techniques. For example,
how much should be paid for banner advertising as against online PR
about online presence, and how much for search engine
registration?
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Promotion
Communications Tool Online implementation
Advertising
Selling
Sales promotion
Public relations
Sponsorship
Direct mail
Exhibitions
Merchandising
Packaging
Word of mouth
Interactive display ads, pay-per-click search advertising, targeted ads in social networks
Virtual sales staff, site merchandising, assisted selling (including livechat) and affiliate
marketing
Incentives such as coupons, rewards, online loyalty schemes
Online PR and influencer outreach, blogs, e-newsletters, newsletters, social networks, links
and viral campaigns
Sponsoring an online event, site or service
Opt-in email using e-newsletters and focused ‘solus’ emails
Webinars, virtual exhibitions and white-paper distribution
Promotional ad-serving on retail sites, personalised recommendations and email alerts
Virtual tours, real packaging displayed online
Social, viral, affiliate marketing, email a friend, links

People, Process & Physical
evidence
The People, Process and Physical evidence elements of the mix are
closely related and often grouped as ‘the service elements’.
They are significant since the level of perceived service will impact on a
customer’s loyalty and the probability of their recommending the
service.
Some of the key issues in improving the delivery of service online to
assess the combination of technology and human assistance that is used
to deliver service:
1. Substitution. Deploying technology instead of people (or the
opposite)
2. Complementarity. Deploying technology in combination with people
3. Displacement. Outsourcing or ‘off-shoring’ technology or labour
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People
People variable: The element of the marketing mix that involves the
delivery of service to customers during interactions with those
customers.
The People variable relates to how an organisation’s staff interact with
customers and other stakeholders during sales and pre-and post-sales
communications with them.
Chaffey and Smith suggest that, online, the main consideration for the
People element of the mix is the review of how staff involvement in the
buying is changed, either through new roles such as replying to emails or
online chat enquiries, or through their being replaced through
automated online services.
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People
To manage service and quality, organisations must devise plans to
accommodate the five stages
Stage 1: Customer defines support query
Best practice is clearly to find email support options.
Often, finding contact and support information on a website is surprisingly
difficult. Standardised terminology on site is ‘Contact Us’, ‘Support’ or ‘Ask a
Question’.
Providing FAQs or automated diagnostic tools should be considered at this
stage to reduce the number of inbound enquiries.
Avatars are increasingly being used to reduce the need for enquiries.
Stage 2: Receipt of email and acknowledgement
Best practice is that automatic message acknowledgement occurs.
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Stage 3: Routeing of email
Best practice involves automated routeing or workflow.
Routeing the email to the right person is made easier if the type of query has
been identified through the techniques described for Stage 1.
Stage 4: Compose response
Best practice is to use a library of pre-prepared templates for different types
of query.
These can then be tailored and personalised by the contact centre employee
as appropriate.
Stage 5: Follow-up
Best practice is that if the employee does not successfully answer the first
response, then the email should suggest call back from an employee or a live
chat. Finally, the email follow-up may provide the opportunity for outbound
contact and marketing, perhaps advising about complementary products or
offers.
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Process
Process variable: The element of the marketing mix that involves the
methods and procedures companies use to achieve all marketing functions,
such as new product development, promotion, sales and customer service.
The restructuring of the organisation and channel structures to
accommodate online marketing are part of Process.
Customer contact strategies are a compromise between delivering quality
customer service with the emphasis on customer choice and minimising the
cost of customer contacts.
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Typical operational objectives that should drive the strategies and
measure effective-ness are:
1.to minimise average response time per email and the range of response
time from slowest to fastest
2.to minimise clear-up (resolution) time
3.to maximise customer satisfaction ratings with response;
4.to minimise average staff time and cost per email response.
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Customer contact strategies for integrating web and email support into
existing contact centre operations usually incorporate elements of the
following options:
• Customer-preferred channel. the company uses a customer-led
approach where customers use their preferred channel for enquiry.
There is little attempt made to influence the customer. While this
approach may give good customer satisfaction ratings, it is not usually
the most cost-effective approach.
• Company-preferred channel. Here the company will seek to influence
the customer on the medium used for contact. Customer choice is still
available, but the company uses the website to influence the choice of
channel.
• Delivering customer services and assisted sales through Live chat is
increasingly popular.
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Physical evidence
The Physical evidence variable: The element of the marketing mix
that involves the tangible expression of a product and how it is
purchased and used.
In an online context, ‘physical evidence’ refers to the customer’s
experience of the company through the website.
It includes issues such as site ease of use or navigation, availability
and performance.
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WHAT IS DIGITAL MARKETING
Digital marketing, also called online marketing, is the promotion of
brands to connect with potential customers using the internet and
other forms of digital communication. This includes not only email,
social media, and web-based advertising, but also text and
multimedia messages as a marketing channel.
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The term digital marketing refers to the use of digital channels to
market products and services to consumers. This type
of marketing involves the use of websites, mobile devices, social
media, search engines, and other similar channels. Digital
marketing became popular with the advent of the internet in the
1990s.
Digital marketing involves some of the same principles as
traditional marketing and is often considered an additional way for
companies to approach consumers and understand their behavior.
Companies often combine traditional and digital marketing
techniques in their strategies. But digital marketing comes with its
own set of challenges, including implicit bias.
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Digital Marketing Objectives
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Constructing Brand Value and Awareness
One of the key goals and components of Digital
Digital Marketing strategies might help you build your
business is small or only operates in a small geographic
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Improve SEO Person Techniques
We must study the content in order to make our content
optimized for search engines. Google Analytics is a tool that
evaluate data and give a hint to an SEO expert to improve
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Increase the number of visitors
Digital Marketing plays a vital role in increasing the traffic
website. We can do that by using interlinking in the content,
image, and CTA(Call to Action) link, through this process
can be busy.
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Paid Advertisement
Paid advertisements are said to be the main contribution of
it provides a number of ways to interact with the target
The work is pretty easy, simply create the ad that will
audience based on various factors that are demographics,
define the budget and your task is over.
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Marketing with the help of Electronic Mail
The use of an email marketing strategy is a further successful method
Incoming and outgoing calls are comparable to electronic mail in that
with customers directly by sending emails to them.
If they find your emails relevant and engaging, you will undoubtedly
Produce unique and relevant Insights regularly
A company can accept direct sales if they have its own respective site
which can be electronic items, training courses, clothes, and many
For your sales staff to have enough leads to handle, you need to have
You could anticipate an increase in consumer visits to your store
strategies.
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Reduce cost prices for New Customers
The secret to lowering the cost of attracting new clients is
offers a vision for reaching the widest possible audience
communication is quicker than it is with traditional
You may quickly conduct promotions with the press of a
a lot on employing staff, purchasing inventory, paying for
advertisements, logistics, etc. This lowers the cost of
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10 benefits of digital
marketing
•Reaching a Global Audience
•Marketing to Niche Audience
•Increased ROI (Return on Investment)
•Trackable & Measurable Results
•Increased Social Currency
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BENIFITS
•Interactive Marketing
•Improved Conversion Rates
•Scope of A/B Testing
•Remarketing Opportunities
•Win Customer Loyalty
•Higher Engagement
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Characteristics of Digital
Marketing
1. Two Way
Unlike traditional marketing, digital marketing uses a
unidirectional message encouraging the customers to
interact with the brand instantaneously. It is a great way to
involve the audience in your promotion and advertising process
rather than them being a mere recipient. Social users interested in
the product form a network of interactions, spreading the word
wider and developing a platform of queries and clarification in the
form of comments. The new digital marketing era has made it
simpler for a brand to advertise multiple products in a single ad
through ‘People also bought’ and for customers to save them in
their ‘wishlist’ and revisit later.
Personalization, automation, data analysis, and mobile
optimization are expected to be key characteristics of digital
marketing in 2023.
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2. Measurable
One important characteristic of a digital marketing campaign is
measurability. The word digital in itself has ‘digit.’ So whether
you are putting up a social media ad or inviting clients to an offline
event to play around with the installation, you should be able
to collect the reach of these ads and responses numerically.
The collection of this data is more straightforward in digital
marketing and acts as an asset for future marketing purposes. It
helps to know which audience you can narrow how, how effective
your copy was and which strategy worked well or failed in the
past.
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3. Targeted
Every digital or online marketing strategy is targeted, meaning
it focuses on a specific audience group. The data collected
helps the marketers to target specific key demographics. For
instance, a vegan cosmetics brand would target a female
audience between the ages of 16 to 45, previously known to
search for vegan brands and a particular region if the company
only delivers in certain areas. It also helps gain numerical of the
number of times the ad is viewed and determine the strategy that
works well. The aim should be to deliver a meaningful message
and enhance user and brand engagement.
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. Personalization
When your digital marketing copy is measurable, you can also
track your customer’s shopping habits, frequently viewed
products, and preferences. It helps you personalize product
suggestions for each customer and recommend related goods
or services. You can also send a user personalized, one-time-use
discount vouchers based on their ‘Watch list’ or ‘wishlist’, which
they cannot share with another. The internet enables you to match
the customers’ requirements, making digital marketing budget-
friendly and user-friendly.
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5. Remarketing
Another significant characteristic and digital marketing tactic is
Remarketing. It stems from previous marketing
advertisements wherein the company shows ads specifically
to those who have visited their page earlier or showed
interest. It is mainly used for services or products for which the
customer frequently visits the website. Remarketing could be of
three types: Audience based, behavioural and contextual. For
instance, you might have noticed that you see advertisements
from merchants whose products you’ve seen but not bought. It is
a great feature to increase brand awareness and traffic drive
directing them to the target landing page of your website. Now
that you know what to show whom, you could add richer product
information and details in the form of frequently answered
questions and descriptions.
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6. Multi-channel:
A digital marketing strategy needs to be used on multi-channels.
Not all of the audience uses all of the platforms, or maybe they act
selectively active on some. The goal is to reach the prospective
buyer through various modes of online communication. The
communication method should be easier and simpler to navigate
through. For instance, would your audience want to complete
product checkout through a reminder on Instagram or a
personalized checkout link sent through email? It engages the
prospect with the brand on an ongoing basis and cuts down
printing and posting costs. The goal is to make the content
accessible and easy to respond to.
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7. Adaptability
Digital marketing demands flexibility and adaptability to the
changing technological, customer, and media requirements.
The campaign is supposed to adapt to the evolving situations of
the target audience. Being a digital marketer could be pretty
challenging, although it calls for creative minds to track and match
the buyer signals and create an adaptable call-to-action message.
Companies need to be flexible as new trends come and go quickly
in the fast-changing environment.
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DIFFRENCE
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Digital Marketing Best
Practices
1. Chatbots & Conversational Marketing
Conversational marketing uses automated technology, usually
including artificial intelligence. It includes everything from email
marketing to customer feedback and helps online shoppers and
brands connect with each other through chat and voice.
2. Voice Search
Voice search using smartphones with voice assistants and smart
speakers is going to continue to grow.
And it’s not just about finding info.
Voice commerce sales hit about $1.8 billion in 2018, with
estimates putting sales at $40 billion by 2022.
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3. Personalization
More than 70% of consumers get frustrated when content has
nothing to do with them. When their experience is personalized,
though, nearly 50% of consumers will spend more.
4. Video Marketing
Video marketing is any type of video you record and post with the
intention of moving you towards your business goals. And it
doesn’t just happen on YouTube.
Social media platforms like Facebook, Twitter, Instagram,
Snapchat, and maybe even TikTok are also great places for video
marketing content.
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5. Micro-Moments
Micro-moments are intent-rich moments when a person heads to
a device to act on a need to know, to go, to do, or to buy.
6. Social Commerce & Shoppable Posts
No digital marketing best practices post would be complete
without mention of social commerce.
7. Omnichannel Marketing
Omnichannel marketing sounds complicated, but it really just
means marketing across multiple platforms. This helps you create
a consistent voice and brand message.
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UNIT 1 INTRODUCTION to Digital Marketing

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