Marketing mix is a term that has been around for over half a century. In fact, every marketer who has ever thought about how their product fits their audience has used a marketing mix method.
Acknowledged in the business world as the pillar of marketing, the model consists of 4Ps: Product, Promotion, Place, Price
So, how has digital marketing affected the age-old marketing mix? This article lays bare how this seasoned principle was able to age like fine wine.
Origins and Today
Invented in the 1960s by Philip Kotler, the 4Ps of marketing have been the go-to strategies for profitable business organizations.
Kotler defined a marketing mix as a collection of marketing tools that a business organization uses to carry out and achieve its goals in the target market. Hence, every business should integrate at least four elements into its marketing strategy to ensure success.
As they say, change is inevitable, and the marketing mix is no different. What used to work during the inception of the concept cannot work in the current digital era. The demand for change gave birth to what we now know as digital marketing.
There is a need for personalization. You should create better experiences and build relationships with your customers. Digital marketing involves using various methods and channels to analyze marketing strategies and determine what is applicable in real-time.
Research shows 71% of customers get frustrated when their shopping experience is not personalized. In fact, 90 percent of consumers in the US consider marketing personalization appealing.
The 4 P’s of (Digital) Marketing
The 4Ps of marketing (product, place, promotion, and price) have since become a vital part of digital marketing. Although various revenue streams have changed how some elements work, the initial concept of a traditional marketing mix still abounds.
Research thoroughly when determining the right product to introduce in a given market.
With the availability of smartphones and computers, your research process can be seamless, especially when collecting data from potential customers. Check the products that consumers demand online. That will save you time and effort. And it can help you increase sales.
You also need to create a strong unique selling proposition (USP). Make it easy for your audience to understand how your product will be valuable to them. Product benefits and features should be clear and unique enough for your business to differentiate itself from the competition.
With digital technology, consumers can quickly check and compare prices online before purchase.
High prices can push them to look for the same product or service elsewhere. In contrast, lower prices cut into your profit margin. It is therefore important that a business seeks the perfect balance between the two.
In a case where some variables can influence final sales, it is not advisable to display product prices.
Market share, product quality and branding, consumers’ perceived value of your product, competition and initial input cost are all factors that influence pricing.
You can create routine pricing alternatives that target different audiences. In case a country and/or state has specific tax rules that affect your product’s overall cost, you can adjust prices real-time to cater to the users in those locations.
Online suppliers and e-commerce websites can easily cut down overhead costs associated with brick-and-mortar businesses. For example, if you’re selling downloadable products or software, you don’t have manufacturing or transport costs. In turn, you can adjust your pricing accordingly.
Where will your customers buy your products? Will you sell online? Will you do it offline? Or both? Whatever the choice, each option comes with its own challenges you must handle for smooth operation.
Digital marketing has made “place” in the marketing mix more complex considering the different customer experience choices. For instance, a study found that 92% of shoppers were influenced to buy products from companies that have shopping cart recommendations on their websites.
Platforms that include emails, online forms, and social media have improved relationships between companies and their customers, altering how modern businesses work.
For example, you can introduce insightful recommendations using popular Q&A platforms like Quora, respond to consumers in real-time on Facebook, and use platforms like Yelp to respond to negative criticisms from the users.
Availing products to consumers at a place and time appropriate to them gives you a competitive advantage. You can modify and control user experience by using the digital avenues within your reach. Ideally, you are using several digital marketing channels to display your products online. It’s also advised to assign each strategy a weight in order to assess which one is most pivotal for your current goals.
Traditionally, businesses used to promote their products via print media, outdoor advertising, and radio. Others would heavily rely on free-standing inserts in packaged goods and coupons in newspapers to promote new products.
Today, marketing is conducted digitally and is driven by analytics. This makes it easier for you to measure your success. There are lots of different ways to digitally promote your product or service. These include the use of SEO, PPC, Social Media Marketing, Content and Email Marketing.
These marketing tactics’ effects can be measured and thus help you to continuously test and optimize your marketing mix efforts.
By using key performance indicators (KPIs) you can measure your effectiveness in reaching your business goals. Once you have solid data, tweak your efforts to improve your outcomes. Cart abandonment rate, traffic, conversions, Click-through-Rate and Average Order Value are all examples of KPIs that you should track to determine the effectiveness of your marketing mix.
Today’s customers are more aware, demanding, and intelligent when buying products and services. They want quality products at the lowest possible cost.
As such, you should find an effective way to scale up your actions. This helps maximize your customers’ value without compromising on your profit margins.
With the entry of digital technology, the traditional marketing mix has incorporated the latest tools in its four components. These include response analysis, recommendations engines, customer profiling, and transactional messaging.
The business environment is getting more competitive by the day. Only those that step up to the challenge in terms of marketing will be able to weather the storm. Ogno’s marketing expertise can help your business stay ahead of the pack and further enhance your outreach.