Marketing Mix - McCarthy’s four Ps:
Professor Jerome McCarthy introduced in the early 1960s a marketing mix which consists of the 4 Ps: product, price, place and promotion (Kotler, 1999, p. 94). Traditionally, efficient product, price, place and promotion strategies would lead to a successful business but in today’s society, due to such technological advancements, the internet is changing the way we sell our products and services, and therefore organisations now need online strategies to attract and retain customers. The e-marketing mix considers how the 4 Ps can be presented online in order to give that firm a competitive advantage through digital marketing (Learn Marketing, 2014).
Digital marketers must keep up-to-date with the consumers preference, trends and needs, in order to meet these needs and to be able to remain competitive in the market . The connectivity created by digital media leads to enhanced product benefits such as online games and applications (Pride & Ferell, 2014). However, the use of the internet to sell products could be a disadvantage to the business since the goods being sold are intangible, the consumer could research and find reviews describing a product as low quality which could result in sale losses (Brand Driven Digital, 2013).
“The Ansoff Matrix (appendix C) shows four different growth strategies that result by combining existing or new products with existing or new markets: market penetration, market development, product development,and diversification” (Fadaei, 2014).
Digital marketing such as the internet has allowed consumers to easily compare prices online through apps from app stores or price comparison websites such as pricerunner.co.uk. This can reduce search costs for the consumers and customers are more likely to expect low prices which can increase price competition. To counteract this, firms adapt pricing strategies, such as price discrimination, charging different prices at different markets which makes it difficult for consumers to compare prices (Shin, 2001). “Digital marketing can enhance the value of products by providing extra benefits such as service, information, and convenience” (Digital Marketing and Social Networking, 2012). Digital media has allowed discounts, promotions or coupons to be easily communicated. A business could also provide incentives for customers to buy online online through online coupons which would create demand, hence, creating a competitive advantage. For a price competitive firm, digital marketing provides many opportunities.
Promotion in digital marketing is far different from traditional marketing, this includes marketing through the use of email, banner adverts, web sponsorships and social media such as twitter and facebook. One of the best ways businesses can take advantage of digital marketing is through promotion. If a company was to have a cheaper online price, than the price in store, they could use this as a focal point of its...