DIGITAL MARKETING
STRATEGY, IMPLEMENTATION AND PRACTICE
Seventh Edition
Part 2
Digital marketing strategy
development
Chapter 5
Digital media and the
marketing mix
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Chapter 5 Digital media and the
marketing mix
Main topics:
• Product
• Price
• Place
• Promotion
• People, process and
physical evidence
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What is the marketing mix?
The marketing mix, originally referred to as the 4Ps of product,
price, place and promotion by Jerome McCarthy (1960)
However, in the 1980s the 4Ps was challenged for not referencing
the importance of customer service. The result was that the mix
was extended to 7Ps, which include three further elements (the
service mix) that better reflect service delivery: People, Process
and Physical evidence by Booms and Bitner (1981)
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
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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
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Price
1. Increased price transparency
2. Downward pressure on price
3. Innovative pricing approaches
4. Alternative pricing structure or policies
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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
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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
Word of mouth Virtual tours, real packaging displayed online Social,
viral, affiliate marketing, email a friend, links
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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
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Physical evidence refers to:
A customer’s experience of the company through the web site
and other digital media.
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