BUSI 338 Chapter 5.pptx

Copyright © 2019, 2016, 2012 Pearson Education, Inc. All Rights Reserved
Chapter 5
Digital media and the
marketing mix
Part 2
Digital marketing strategy
development
DIGITAL MARKETING
STRATEGY, IMPLEMENTATION AND PRACTICE
Seventh Edition

RACE Planning Network

Chapter 5 Digital media and the
marketing mix
Main topics:
• Product
• Price
• Place
• Promotion
• People, process and physical evidence

Case study: Amazon
Question:
How AMAZON uses for different elements of the marketing
mix?
Source: https://www.recode.net/2018/2/28/17064460/spotify-ipo-charts-music-streaming-daniel-ek
10 Fascinating Amazon Statistics Sellers Need To Know in 2020
(bigcommerce.com)

marketing mix
Marketers are familiar with the Marketing Mix of
the 4Ps or 7Ps, which provides a great
framework for reviewing tactics to offer
products and services to a company. It’s a
universal framework which can be usefully
applied to businesses of all sizes.

marketing mix
Electronic marketing strategy or E-marketing
strategy was commonly used between circa
2000 to 2010 to show a broader scope
superseding Internet marketing strategy which
mainly referred to web marketing and use of
SEO to also consider techniques like Customer
Relationship Management.

marketing mix
Google Trends shows how the popularity of
these terms has changed through time and
how digital marketing now dominates, so that’s
the term to use if you want to be ‘in-the-know’.

marketing mix

What is the marketing mix?

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

The long tail concept
The long tail of e-commerce is a model in
which more of niche products are sold
rather than advertising and marketing a
single or two or three products which can
go on to become bestsellers that are the
sole source of revenue for the company.
With limited space on store shelves and in
traditional distribution channels, and with
retailers and distributors seeking to
maximize their returns, producers have
tended to focus their marketing resources
on a small number of likely best sellers.

The long tail concept; In
practice of Amazon
One company that has employed the long tail effect with great success is
Amazon. As an online retailer, Amazon can stock a vast number of different
products and therefore meet the needs of many different individuals. A large
proportion of Amazon’s sales come from obscure books that may not be
available in traditional brick and mortar stores, rather than popular best
sellers.
Because Amazon can provide niche products, it can appeal to many different
customers with diverse interests. Many other businesses, particularly those
involved in online retail, may be able to profit from a similar strategy.
Popular online companies such as iTunes and Netflix generate a lot of
revenue from selling small numbers of many different, less popular items that
appeal to a wide range of customer preferences.

practice of Amazon
There will still be trends and hits that generate a larger bulk
of profit. After all, it seems unlikely that we’ll ever be without
hit music or blockbuster movies. These popular items are
always going to draw a lot of attention and revenue.
But increasingly, attention and profit are also moving
towards smaller, less popular items in the long tail, and it’s
affecting the way both consumers and producers can act.

practice of Amazon
As a reflection;
A key example of the way in which Amazon uses long tail keywords is
through the actual names of the products. So, if you are searching for
a specific headset for your PC, Amazon will usually be one of the top
search results for the exact thing you are looking for. This is a long tail
keyword in action.
To break it down for you:
– Clothing = head keyword
– Men’s Barbour Jacket = long tail keyword

practice of Amazon

Branding in a digital environment
• Success factors for brand sites
• Brand identity
• Brand names for online brands

The Amazon logo was created to represent the message that it sells
everything from A to Z (the arrow connects the two letters) and also represents
the smile that customers would experience by shopping on the Amazon.com
Web site (the arrow becomes a smile).

With Prime, Echo and its ever-broadening Web Service’s business,
Amazon is slowly but surely becoming the world leader in delivering
on its brand promise: being the "Earth’s biggest selection and being
the Earth’s most customer-centric company.”

Branding in a digital environment;
how relevant they are….
Brand Relevance Index®: Top Brands of
2019 | Prophet

Price
1. Increased price transparency
2. Downward pressure on price
3. Innovative pricing approaches
4. Alternative pricing structure or policies

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

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 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

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

Physical evidence refers to:
A customer’s experience of the company through the web
site and other digital media.

BUSI 338 Chapter 5.pptx

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