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
changed

Marketing

Digital

RIGHT INFORMATION

INSIGHT

RIGHT PEOPLE

TARGETING

RIGHT TIME

24/7

Introduction
to Digital
Insight 1:
Magnification

The digital world has not

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?
Place

Price

Marketing
Mix

People

Process

Promotion

Physical
Evidence

The
Marketing Mix
Why is it useful?

Development

Awareness

Trial

Usage

Repeat

The
Marketing Mix
Product

4+3
for services

Place

Price

Marketing
Mix

People

Process

Promotion

Physical
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
Digital
Opportunities

Additional products and services

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
strong OVP

Quality of Experience

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
Definition

The place of digital purchase,

distribution and consumption
Seller controlled

Sellerorientated

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
price complex

Low Price

High Price

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
and threats

Opportunities

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
promotional
tools

Selling

Sales Promotion

Public Relations

Sponsorship

eMail

Viral

Promotion
Advertising

Online
execution of
promotional
tools

Selling

Sales Promotion

Public Relations

Sponsorship

eMail

Viral

Promotion
Advertising

Google Adwords

Promotion
Advertising

Online
execution of
promotional
tools

Selling

Sales Promotion

Public Relations

Sponsorship

eMail

Viral

Promotion
Selling

Promotion
Advertising

Online
execution of
promotional
tools

Selling

Sales Promotion

Public Relations

Sponsorship

eMail

Viral

Promotion
Sales
Promotion

Promotion
Advertising

Online
execution of
promotional
tools

Selling

Sales Promotion

Public Relations

Sponsorship

eMail

Viral

Promotion
Public
Relations

Promotion
Advertising

Online
execution of
promotional
tools

Selling

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
Evidence
On-line
reassurance

Web site design

Awards and endorsements

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
Summary

Digital just another channel

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
Reading
List

Adamson, AP. (2008) Brand Digital. Palgrave Macmillan

Chaffey, D. and Chadwick, FE. (2012) Digital Marketing:
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