The 7 P's of the Online Marketing Mix

7 P's for Online Marketing Mix

• Product: The actual good or service offered, which should focus on features, design, and quality to stand out.
• Price: The payment from customers for the product/service, influenced by production costs and competitor pricing.
• Place: Where the product is available, whether online, offline, or both, and the chosen distribution channel.
• Promotion: Methods of persuading people to purchase, including advertising, sales promotion, PR, and personal selling.
• People: Individuals involved in delivering the product/service, such as employees, sales teams, and customer service.
• Process: Steps and systems to deliver the product/service, impacting areas like online order processing speed.
• Physical Evidence: Tangible aspects, like branding and store ambiance, that build customer trust.

Digital Marketing

• Digital marketing utilizes the internet and electronic devices to promote a business and connect with people.
• Businesses employ various online channels, including search engines, social media, email, and websites.

Role of Internet in Marketing

• Advertising Medium
• Direct-Response Medium
• Platform for Sales Transactions
• Lead-Generation Method
• Distribution Channel
• Customer Service Mechanism
• Relationship-Building Medium

Traditional vs. Digital Marketing

• Cost: Traditional marketing is expensive, while digital marketing is more budget-friendly.
• Communication: Traditional marketing involves one-way communication, whereas digital marketing fosters two-way interaction.
• Flexibility: Traditional marketing offers less flexibility compared to the high adaptability of digital marketing.
• ROI: Digital marketing provides a better return on investment than traditional marketing.
• Audience Reach: Traditional marketing is limited to a local audience, while digital marketing can reach a worldwide audience.
• Audience Segmentation: Traditional marketing segments by age, gender, and location, while digital marketing uses interests.

Types of Digital Marketing

• Search Engine Optimization (SEO): Improves website ranking in search engine results to attract more visitors searching for relevant topics. An example is writing blog posts.
• Content Marketing: Attracts and retains customers by creating and sharing useful content like blog posts, videos, and infographics. Companies use "How-to" videos to help customers.
• Social Media Marketing: Promotes a brand or product on social media platforms, engaging audiences and building relationships through posts and ads.
• Pay Per Click (PPC): A paid advertising type where businesses pay for each ad click that appears on search engines, websites, or social media.
• Affiliate Marketing: Businesses pay affiliates to promote products and drive sales. Affiliates earn commission for each referral purchase, such as a YouTuber sharing a product link.
• Marketing Automation: Automates repetitive marketing tasks, like sending emails or social media posts, saving time and improving efficiency and auto sending thank you emails
• Email Marketing: Sends personalized emails to promote products, share news, or build relationships, offering direct customer communication. Sends special discounts or updates to subscribers.
• Mobile Marketing: Reaches customers on mobile devices via apps, SMS, or optimized websites, ensuring connection with smartphone users and sending test message.

Digital Marketing Environment

• The Digital marketing environment encompasses all factors influencing how a business creates, delivers, and promotes products online.
• Understanding customer behavior, strategies and competition is needed for digital marketers.

Types of Business Environment

• Micro-environment includes the immediate influences on a business like:
  • Customers
  • Competitors
  • Suppliers
  • Intermediaries
• Macro-environment is larger, external factors that businesses cannot control, such as:
  • Political Changes
  • Economic Conditions
  • Social Trends
  • Technological Advancements
  • Environmental Concerns
  • Legal Rules

Analyzing Demand

• Digital marketers analyze demand by:
• Understanding customer needs by studying their preferences and behaviours.
• Evaluating Digital Channels assessing platforms customers use to research and purchase products.
• Track Social Media Trends and identify current trends help to optimize platform and strategies.
• Demand analysis is conducted via: -Measuring how many customers use a channel. -Analyzing channel influence via reviews. -Tracking total purchases made.
• Data use improves these strategies along with focusing on that platform.
• Analysis of both external (macro) and internal (micro) to shape strategies.

Brand Changes in India During COVID-19

• Sheela Foam Industries used social media to promote sleep health, combining digital channels and PR through visible stay safe campaign.
• House of Hiranandani shared safety tips and updates on social media. They promoted #BeHomeBeSafe.
• Nykaa focused on essentials and engaged via meaningful content and beauty blogger product reviews.
• Gaana created mood-based playlists to reduce anxiety and personalized campaigns to engage users.

Porter's Five Forces

• Rivalry Among Existing Competitors: High intensity reduces profits, leading to competition on price.
  • Higher number of competitors.
  • Highly diverse competitors due to strategies.
  • High industry concentration due to fragmented markets. -Low industry growth due to companies fighting.
  • High quality differences.
  • Low brand loyalty.
  • High barriers to exit.
  • Low switching costs.
• Threat of New Entrants: New Competition applying pressure to cut prices or improve quality. -High barriers to entry.
  • Economies of scale.
  • Brand loyalty.
  • Capital requirements.
  • Cumulative experience.
  • Government policies.
  • Access to distribution channels.
  • Switching costs.
• Bargaining Power of Suppliers: Control from Suppliers demanding higher prices or delivering lower quality.
  • Small Number and size of suppliers
  • Unique products offered
  • Low Ability to substitute Suppliers
• Bargaining Power of Buyers: Influence enabling demand for lower prices and better quality.
  • Small Number of customers
  • large order sizes
  • High competition
  • Buyers are price sensitive. -Buyer's ability to substitute
  • Buyer's information availability
  • Switching costs
• Threat of Substitute Products: High propensity of customers switching and reducing demand.
  • High Number of substitutes
  • Buyers’ are willing to substitute
  • Lower Price on substitutes
  • Low product differentiation
  • Low Switching costs

Linking Marketing to Web

• Collaboration with Web Developers: Marketing teams and developers must successfully communicate to provide responsive and useful websites.
• Co-citation: When your brand is mentioned in content without a link, it has the potential to improve a site's web authority and recognition.
• Build strategic links: Focus on gaining links from relevant sources by finding common ground between content and link source.
• Affiliate marketing: The usage of commissions to drive website visits from specific links can be established through plugins and networks.
• Hashtags: Social media hashtags improve the reach of posts.

Types of Online Advertising

• Search Advertising (Keyword Advertising) ads are shown based on what people are searching for on search engines.
  • Broad Match shows ads on related keyword variations.
  • Phrase Match matches the search query to the keyword phrase in the same order.
  • Exact Match shows ads only if the search query exactly matches the keyword.
  • Broad Match Modifier finds searches with specific keywords.
• Display Advertising shows banner ads on websites. They also convert leads, are eye-catching, promote customer engagement, appear professional and makes the brand easily recognizable -Retargeting/Remarketing serves ads to people who already visited the website, to remind them.
• Video Advertising presents short, engaging videos
  • Skippable Ads skip after 5 seconds.
  • Non-skippable Ads short ads (about 15 seconds).
  • Bumper Ads are six-second unskippable ads.
  • Outstream Ads that on mobile apps or websites as video.
• Social Media Advertising targets ads to specific people base on their interests on - Facebook, Instagram, and Twitter. Consists of:
  • Link Click Ads that go to a website.
  • Carousel Ads multiple images or videos.
  • Video Ads videos to grab attention.
  • Lead Ads for offer sign-ups.
• Email Advertising shares promotions via email.
• Affiliate Marketing promotes products for a commission.
• Contextual Advertising are ads matching webpage content.

Pricing/Revenue Models in Online Advertising

• CPM (Cost Per Mille) with advertisers paying for 1,000 ad views. Which provides Predictable costs based on ad views & Publishers prefer CPM so revenue is clearer. Has a:
  • Weak Link actual Sales
  • Doesn't Measure ad quality
  • Less Effective cheaper Media
  • No Control how often People see Ads
• CPC (Cost Per Click) with advertisers paying each time someone clicks.
  • Predictable costs per clicks & Ads show till clicks
  • good for exposure and Fast optimization
  • Gauges banner ad quality. But includes:
  • Weak Links actual Sales
  • Relies Accurate Tracking
  • Vulnerable Fraud
  • Measures Banner quality, limited frequency
• (CPL) / (CPA) / (CPS) with advertisers only pay upon a sale, lead or signup. Which also Ads run Unlimited & is less prone to Fraud with Strong ad quality However some:
  • Publishers don't prefer them over Premium
  • Accurate conversions needed with campaign limits

Other important marketing notes

• Click fraud repeatedly clicking ads, to waste money for advertisers from Competitors
• Retargeting (Remarketing) displays ads who did not buy to get them to visit and buy
• Unethical marketing tactics display fake error messages track unknowingly and are harmful
• Affiliate Marketing uses Affiliates who add special links on Social Media to promote where the affiliate gets earnings from it

Key Players as Affiliates (Publishers

• Merchants sell
• Affiliate Networks create connection with the clicks and sales

Types of Affiliates

• Coupon/Deal Websites shares promotional codes and discounts
• Comparison Shopping prices for the same product
• Content Websites Blogs/Forums shares reviews/guides
• Loyalty/Rewards Websites offers cash back

How Affiliates Get Paid

• Pay-Per-Performance (Revenue Share) based Percentage sale
• Pay-Per-Lead (PPL) pays per lead sign-up
• Cost impression (CPM) pays depending how many ad times
• Cost per Click (CPC) paid for every click.
• Affiliate connections with promotions that track handles and helps payments