Chapter

2
Remix

The digital world affects every aspect of business, every aspect of marketing and
every aspect of the marketing mix. Some argue that physical distribution, selling
and pricing absorb the biggest impact. In fact, all the elements of the marketing
mix are affected by this new world. This chapter shows you exactly how to
evaluate the options for varying your organization’s marketing mix.

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2.1 Introduction to remix

The digital marketing mix is changing

• Products become services
• Customers create communities that
extend the brand into new online
experiences

Figure 2.1 The 7Ps of the classic marketing mix

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2.2 What is the marketing mix?
Pepper & Roger (1981)

5Is
7Ps
Product

=
Identification
Price Individualization
Booms & Bitner (1981) Place Interaction
Integration
Promotion Integrity
People

+
Processes
Physical evidence 4Cs Lautenborn (1990) 4Es Rothery (2008)

Customer needs & wants Experience

• Stick to customers Cost to the customer Every place
• Listen to them using social media Convenience Exchange
• Lead marketing research to learn what Communication Evangelism
they need
• Supply it better than the competition by
mixing the right mix

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2.2 What is the marketing mix?

+
Figure 2.2 Revoo consumer product rating site Figure 2.3 bizrate.co.uk online shopping comparison site
Source: www.revoo.com Source: www.Bizrate.co.uk

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2.3 Beyond the mix
Marketers need to know how to manage alliances

The choice of mix should help grow relationships

• Keep customers happy for life

• Make strategic alliances and partnerships
• Supply chain management – sharing data, systems and budgets
• Relationship between buyer and supplier
- Consolidation – customers choosing fewer suppliers
- Commoditization – competition producing similar products.

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2.4 The mix is morphing
• Enhances the product experience – Product
Social media platforms • Promotes the brand – Promotions
• Spreads the accessibility of a brand – Place
• Brand dependent on well-trained teams – People
• Crystal-clear systems and processes - Processes

M
• Improve the customer experience – Product
Apps and widgets • Deliver the experience wherever you are – Place
E
R
• Promote the product simultaneously – Promotion
G
E

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2.5 Product
Adding digital value to products Ghosh (1998)
1. Can I afford additional information or transaction services for my existing
customer base?
2. Can I address the needs of new customer segments by repacking my
current information assets or by creating new business propositions using
the Internet?
3. Can I use my ability to attract customers to generate new sources of
revenue such as advertising or sales of complementary products?
4. Will my current business be significantly harmed by other companies
providing some of the value I currently offer?

Digital products offer interaction and engagement.

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2.5 Product
How can I move from the code product? The Extended Product
Quality and Credibility
• Endorsements • Money-back offers
• Awards • White papers
• Testimonies • Staff photographs
• Customer lists and numbers • Social proof such as a number of
• Customer comments subscribers, circlers, fans or
• Warranties followers on social networks
• Guarantees
Don’t forget to continuously analyse the competition

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2.5 Product
Consistent CX = Offline Value Proposition
= Online Value Proposition

• Reinforces core brand values

• Clearly summarizes what a customer can get
from you that they cannot get elsewhere

The OVP should encompass the complete experience of

selecting, buying and using the product or service

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2.6 Price
New buying processes require new pricing approaches
• Subscription Under pressure because of…
• - Commoditization leading to
Pay Per View
reserve auctions
• Bundling - Price transparency
• Ad-supported content
• Basic price
• Discounts
• Add-ons and extra products and
services
• Guarantees and warranties
Remember to monitor
• Refund and return policies
your price
• Order cancellation terms
• Revoke action buttons
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2.7 Place
Organizations that extend their presence online with links
Place Promotion from other sites
Ads (promotion) follow customers online (place)
Placing ads in front of people who have already expressed an interest in your
business
Which place?

Figure 2.16 Alternative representation locations for online purchases

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2.7 Place

Organizations that extend their presence online with links

from other sites
Place Promotion
New distribution models
• Disintermediation
• Reintermediation
• Infomediation
• Channel confluence
• Peer-to-peer services
• Affiliation
• Group purchasing

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2.8 Promotion

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2.8 Promotion
Six key promotion issues
1. Promotional Mix
2. Integration
3. Creativity
4. Interaction
5. Globalization
6. Resourcing
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2.9 People

Happy Staff = Happy Customers = Happy Shareholders

90% of your website should be designed to service customers

• Auto-responders • Ask and answer services
• Email/text alert • Co-browsing
• Call-back facility • Virtual assistants
• Real-time live chat • Customer reviewers and assistants
• FAQ • Tailored customer landing pages

Challenges
• People vs Automation
• Keeping content fresh
• Training and resourcing
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2.10 Physical evidence
As services online are intangible, customers look for reassurance on quality
• Ratings and reviews • Independent reviews
• Guarantees • News clippings
• Refund policies • Ethnical policies
• Security icons • Community links
• Trade and professional body memberships • Full address and contact details
• Awards • Text only version
• Customer lists • Error-free
• Customer endorsements • Customer endorsements
• Third party/institutional endorsements • Reliable response systems
• International Standards (ISO)

Reasons why people come back to a site

• High-quality content • Quick download
• Ease of use • Frequently updated content
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2.11 Process
Refers to the internal and sometimes external processes, transactions and
internal communications that are required to run a business

Digital Marketing
Morph into Simultaneity in
Products Services production and
consumption

Optimizing internal and external

processes is essential

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2.12 an extra ‘P’ - partnerships

Partnerships need to be identified, recruited

and nurtured for success

e.g. of partnerships : Ford, Tesco and AOL

MUtv, Sky and Century Radio
Live 8 and O2

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Chapter summary
• Re-examine marketing mix for the digital world.
• Relationship building and service quality are vital
• The mix is much more dynamic today

• Product– can be extended online through new information-based services and

interaction with the brand.
• Price – reduction in market prices and changes in purchase, distribution and usage of
products affect price
• Promotion – online options
• People – service quality is a key differentiator online and offline.
• Physical evidence – a well-designed site.
• Process – front- and back-office systems
• Partnerships – can be potent but need experienced management.
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