Activity 1.4 - Digital Marketing Strategy Flashcards
What is digital marketing?
The use of digital and online technologies and media to identify, anticipate and satisfy customers’ needs (usually for a profit).
What sets digital marketing apart from traditional (offline) marketing?
- Provide many opportunities to interact with customers (this is known as “engagement”)
- Can use highly targeted messages, directed at specific audiences
- Have a global reach
- Are often more cost effective than offline approaches
- environmentally friendly
- Can be monitored to evaluate their effectiveness
The classic marketing mix
Products
price
place
promotion
how many stages are there in the classic marketing mix?
4
Products
Must be designed to satisfy customers’ needs
Are typically developed after extensive market research to understand the needs
Can be tangible or intangible
Can be goods or services
Price
is the amount that a business will charge for its products. It’s subject to these considerations:
The cost to produce the product
The customers’ perceived product value
How much do competitors charge for similar products?
How much market share does the business have?
Place
relates to how the business is going to deliver its products to its customers. It encompasses where the product is sold, and the related distribution channels.
Promotion
may be online or offline; it‘s how a company communicates its offering to customers. This is the point at which advertising fits into the marketing mix. Good promotion is two-way and builds a relationship with customers.
The extended marketing mix
People
processes
physical evidence
how many stages in the extended marketing mix?
7
People
People refers to the business’s staff, specifically those who:
Are customer-facing, and so represent the brand to customers
May help to develop the products/services that the business offers
If staff are happy and motivated, this gives the business an undetected competitive advantage.
Processes
Processes are the systems and processes that affect the business’s ability to meet customers’ needs. These internal systems need to be efficient in order to minimise costs and maximise profits, whilst still ensuring convenience for the customer.
Physical evidence
the physical evidence element of the marketing mix refers to the physical environment experienced by the customer. This could include: the physical design and layout of the premises. the layout of the company website
The product life cycle
product development introduction growth maturity decline
product development
Product Development
During the Product Development stage the organisation undertakes research to understand the needs of its target audience. These research findings are used to develop the new product or service.
The company is not making any money yet, because the product or service is still being designed.
introduction
In Introduction the product or service goes on sale.
Other elements of the Marketing Mix (particularly Price, Promotion, and Physical Evidence) will have a large impact on the growth of sales. However, unless the company has good physical evidence, growth of sales is typically slow, as potential customers might be uncertain about the new product.
During this phase, the company isn’t making any profit - it may even be making a loss as it will be spending huge amounts of money on production and marketing.
growth
In Growth more potential customers have heard of the product or service and are willing to purchase it, which means that sales will therefore increase rapidly.
At this point the company will finally start to make a profit.
maturity
In the Maturity phase sales start to slow down and level out. This might be because competitors start entering the market or it may be because most people who want to buy the product have already done so.
decline
Decline means that fewer and fewer people are purchasing the product, which means that sales (and profits) decrease.
What are customers?
A customer is any entity that purchases the products or services that are sold by an organisation. A customer could either be:
An individual person, known as a “consumer” (like whenever you purchase something online or in-store)
A business, which purchases products or services from another organisation (such as when a fitness brand hires a marketing agency to create a new website)
b2c
B2C stands for Business to Customer. Examples include a restaurant providing a takeaway service for individuals to order food, or a high-street store selling sportswear to individuals.
Characteristics of B2C transactions are:
Marketing may involve channels such as magazines, billboards, Instagram, Facebook, TV and radio
Marketing messages are based on emotional factors
Relationships between businesses and consumers are harder to build and maintain
Transactions don’t typically involve negotiation between the business and the consumer
The sales process can be relatively short (taking anywhere from a few minutes to a few hours)
Promotional campaigns (such as discounts and vouchers) are used to promote quick sales
b2b
B2B stands for Business to Business. Examples include a farmer selling fruit and vegetables to a wholesaler, or a wholesaler selling nail polish to a salon.
Characteristics of B2B transactions are:
Marketing may involve channels such as industry publications, LinkedIn, and trade shows
Marketing messages are based on value, service and trust
Relationships between businesses are developed and ongoing
Transactions may involve a degree of negotiation
Therefore sales processes take longer than with B2C relationships
Transactions between businesses may be part of a complex supply chain