Digital marketing – individual assignment how digital tools are changing marketing mix(4ps

To make effective use of this information, a company needs to have the right systems and processes in place to understand and use feedback correctly and effectively.[ CITATION MỹC23 \l 1

- Name : Nguyen Ngoc Anh

- Student code : HS171171

Hanoi, 25th May 2023

TABLE OF CONTENT

A Introduction

1 Overview of marketing

2 Overview of marketing mix

B How digital tools are changing marketing mix

A Introduction

I Overview of Marketing

Marketing is the activity, set of institutions, and processes for creating, communicating,

delivering, and exchanging offerings that have value for customers, clients, partners, and society at large.[CITATION Geo \l 1066 ]

Marketing has undergone significant changes between the past and the present Digital

technology has become a crucial factor in this field, opening up new opportunities and different

challenges Nowadays, customer access is no longer limited by space and time With the prevalence of theinternet and social media, digital marketing has become an integral part of businesses marketing

strategies Through email marketing, online advertising, content marketing, and social media, we can quickly and effectively reach our target customers The popularity of mobile devices also plays a vital role in changing how we access and interact with customers Moreover, customers increasingly expect personalized experiences Businesses must find ways to interact and deliver tailored messages to

individual customers Technology and data have provided us with the necessary tools and insights to better understand customers and create customized experiences From suggesting products based on purchase history to offering relevant product recommendations on websites, and engaging through social media channels, personalization has become a critical element in establishing connections and enhancing customer loyalty.[ CITATION Lươ20 \l 1066 ]

Modern marketing goes beyond traditional messaging and customer outreach It involves creatinginteractive and personalized experiences to attract and retain customer interest The development of digital technology, the expectation of personalized experiences, and the ability to analyze data have driven change and progress in the field of marketing

II Overview of Marketing Mix (4Ps)

The marketing mix is the set of actions or tactics, that a company applies to market its brand or product A typical marketing mix consists of the four Ps: price, product, promotion, and place However,

in today's marketing mix, other Ps such as Packaging, Positioning, People, and even Politics is becoming

In the past, the marketing mix focused on traditional product creation, pricing, and advertising However, now, with the development of technology and digital, the marketing mix has expanded to include both distribution channels and customer experience Online advertising, social media marketing, content marketing, and personalized interactions are becoming important elements of modern marketing strategy.

B How digital tools are changing the marketing mix

I Product

Products are created to satisfy the needs of a specific group of customers Products can be tangible or intangible (services or ideas) There are several companies competing for the same product range A product must have a distinct selling proposition in order to be successful This is referred to as a product's positioning in marketing The product’s positioning is the difference in the same product line with your competitors or the way consumers perceive your product.(coursera)

Over the years, the product has changed markedly It can be seen that traditional marketing has a limited reach and lack of interactivity They can only through traditional media such as television

advertising, newspapers, and radio to promote products Through those channels, create an image and value for the product in the customer's mind Today, thanks to digital marketing, products reach customersaround the world Customers can directly interact with the product, express their opinions and share their experiences, creating a multi-dimensional interactive environment In addition, digital marketing also brings benefits in terms of performance measurement and data analysis The company can collect insights

on customer behavior, responses, and interactions through analytics tools As a result, they can better

understand the needs and wants of customers, thereby adjusting products and optimizing marketing strategies In a nutshell, traditional marketing focuses on building brands and promoting products throughtraditional media, while digital marketing opens up broader reach, engagement, and engagement from customer.

1 Customer co-creation

1.1 Definition

Customer co-creation refers to the collaborative process in which businesses actively involve their customers in the creation, design, and development of products, services, or experiences It

recognizes the value of customer insights and contributions, allowing companies to harness their

knowledge, preferences, and creativity to enhance the value proposition of their offerings It involves engaging customers as active participants throughout the entire product/service lifecycle, from idea generation to implementation, with the aim of creating customer-centric solutions that better meet their needs and preferences

1.2 Types of customer co-creation

The various types of co-creation have been classified by Matthew S O'Hern and Aric Rindfleischbased on the level of customer contribution activity (limited or unlimited) and new idea selection activity (enterprise) or the customer has a significant influence on the decision), there are four types of co-creation

-Submitting: Customer contribution is limited, the business plays a major role in decision-making Customers submit their ideas, feedback, or suggestions to the company The company then takes these inputs and uses them to improve or create products and services.

-Co-designing: a relatively small group of customers that provide the majority of new ideas, and other large customers choose which ideas are implemented and developed

-Tinkering: where customers modify commercially available products, some of which are incorporated into subsequent releases

-Collaborating: this style gives the customers the greatest power to contribute their own ideas and select components for new products, so requires co-creators to have high qualifications and knowledge

(coursera)

Co-creation is the key to Haidilao's billion-view campaign on Tiktok This restaurant chain allowsdiners to choose their own ingredients according to their own tastes and preferences and encourages them

to record videos of the process This idea attracts a lot of food lovers to choose and record their

ingredients selection process, thereby allowing them to show their passion and cooking ability Up to now, the hashtags #haidilao #haidilaohotpot #海底捞 are holding nearly 50 million views on the Tiktok platform and more than 2 billion views on the Douyin platform.[ CITATION Trầ21 \l 1066 ]

In this campaign, Haidilao used two types of customer co-creation strategies:

+Co-designing: Haidilao allows diners to choose their own ingredients according to their tastes and preferences By offering a wide range of ingredients and customization options, Haidilao involves customers in the design of their own hotpot dining experience This co-designing approach empowers customers to personalize their meals, creating a sense of ownership and satisfaction

+Submitting: Haidilao encourages customers to record videos of their ingredient selection process and share them on platforms like TikTok By doing so, Haidilao actively solicits submissions and feedback from customers, allowing them to participate in the creation of content and contribute to the brand's online presence This form of submission enables customers to showcase their passion for food and cooking, while also promoting the Haidilao brand

1.3 Issues and conditions where the company can apply this concept

In the process of customer co-creation, companies face many challenges One of them is

managing diverse opinions from customers With the active participation of customers, opinions and

suggestions can be diverse and even contradictory This requires the company to be able to categorize, evaluate and manage opinions to find the most constructive and reasonable suggestions Managing customer engagement is another challenge To achieve active participation, the company needs to create

an environment that is encouraging and engaging Incentive methods such as motivation, rewards, or building a vibrant online community can be used to encourage input and interaction Finally, handling feedback is another challenge that we can't get enough of company has to face When customers

participate in the co-creation process, the company can receive a large amount of feedback To make effective use of this information, a company needs to have the right systems and processes in place to understand and use feedback correctly and effectively.[ CITATION MỹC23 \l 1066 ]

When the company wants to develop a new product, instead of just relying on the ideas of the internal team, the company can use the co-creation method to collect ideas and contributions from customers, partners, and the community The use of co-creation not only helps the company to collect many opinions and contributions from the community but also helps create interaction and cohesion between the company and customers By including customers and partners in the product development process, the company can quickly and accurately respond to customer needs and thereby create customer satisfaction and consensus

2 Sharing economy

2.1 Definition

The sharing economy is an economic model based on the sharing of assets, services, and

resources between individuals and organizations through technology platforms This model allows those with unused or underused assets or skills to share or rent them out to others through electronic

applications or websites (coursera)

In the sharing economy, users can rent, borrow, or exchange assets such as apartments, cars, tools,electronics, and more, instead of having to buy new or own them This maximizes the use of existing assets and reduces the waste of resources

2.2 Components of sharing economy

-Inherently digital in nature (two side platform): A two-sided platform is a key component of the sharing economy The platform connects two separate parties - suppliers and users - to exchange goods and

services The platform is built on a digital infrastructure that facilitates transactions, ratings and reviews between two parties.

This two-sided platform allows vendors to monetize their unused assets At the same time, users can easily access these resources at a lower cost than with traditional options, such as hotels or car rental companies The two-sided platform creates an accessible, efficient, and user-friendly marketplace

One of the essential features of this platform is the rating and review system Both the provider and the user have the ability to provide feedback on the experience This feedback helps foster trust and accountability within the platform Suppliers are encouraged to provide high-quality goods and services, while users are encouraged to act responsibly and respectfully

-Crowdsource supply: The form of creating products, collecting information or opinions from a large group of people who submit their data via the Internet, and social networks But the company is hard to control them, so to be successful, the company must careful selections, then give providers a set of rules

to follow, and finally, a rating system that encourages customers to provide ratings of their providers and then eliminates providers that obtain lower ratings

-Access not ownership: by providing temporary access, customers have the opportunity to try products and services they can’t buy, or don’t want to own (coursera)

2.3 Example

Grab is a ride-hailing and delivery services company based in Southeast Asia that has embraced the sharing economy model to provide a range of services across the region Grab operates on a two-sidedplatform, connecting drivers and riders or businesses and consumers, to deliver a range of services with shared benefits

One of the key ways Grab has leveraged the sharing economy is through its ride-hailing and carpooling services Grab allows users to hail rides on-demand, matching them with private car drivers in the area to provide transportation services Grab also provides carpooling services that let users share rides with other riders heading in the same direction, making transportation more efficient and cost-effective

Grab has also adopted the sharing economy model to provide delivery and courier services Through GrabExpress, users can rely on motorcycle and car couriers to deliver packages and goods around the city quickly and efficiently Grab also offers food delivery through GrabFood, building on the popularity of food delivery services in the region.[ CITATION Min21 \l 1033 ]

2.4 Sharing Economy Typology

This matrix has two dimensions:

- Consociality: Consociality refers to the social ties between individuals and communities that facilitate sharing and collaboration It involves building trust between individuals, allowing them to share their resources and knowledge in a mutually beneficial way Consociality is a key component of the sharing economy, which relies on peer-to-peer exchanges and relationships to facilitate trade and collaboration.+ Forum: the online communities that facilitate the exchange of information, resources, and skills among members like Facebook groups,…

+ Enablers: who provide digital tools, platforms and resources so that others can share assets Examples

of enablers are companies that provide software and platforms like Uber, Grab, or Airbnb

-Platform intermediation: Platform intermediation refers to the role of digital platforms in connecting buyers and sellers, facilitating transactions, and managing the exchange process Platforms act as

intermediaries, providing a range of services and features that make it easy for users to connect with each

other, share information, and manage transactions These platforms often take a commission or fee for their services, making them an essential component of the sharing economy.

+ Matchmaker: the intermediary between the person who has the property to share and the person who wants to use that property The websites allow users to search for services such as renting a room or a car.+ Hubs: These platforms are physical spaces where users can access and share goods and services

2.5. Issues in the concept of “Sharing economy”.

Along with many benefits brought by new business methods, the sharing economy has arisen difficulties and challenges related to the market, fair competition, innovation capacity, and especially challenges Knowledge of state management of taxes, business conditions, borderless payments, labor safety, insurance, etc

One is unequal competition Because of the superiority of this economic model, it will create great competitive pressure for enterprises doing business in the traditional model The recent business story of Uber and Grab with traditional taxi companies is one of the typical examples Uber and Grab’s cars are actively increasing and decreasing prices at each time of the day,… Meanwhile, traditional taxi companies that are operating with the same customers as Uber and Grab are subject to very strict

regulations in business such as ensuring traffic safety regulations and paying taxes by revenue at the rate

of 4.5%/month Not to mention, traditional taxi companies must have clear colors, and nameplates, and even be banned from roads during certain time frames, while Grab and Uber are not bound by these regulations

The second is to increase the level of risks such as Creating new relationships in the market, party relationships instead of 2 parties in economic contracts, and potential risks in ensuring the interests

3-of both buyers and sellers sale, conflicts 3-of interest between enterprises doing business in the sharing economy model and traditional business enterprises Along with that, there are also problems related to tax collection and financial obligations arising from service activities, measurement, and integration in national economic accounts

Third, tax administration for the sharing economy model in our country is still very difficult The sharing economy model is a new business model Therefore, for effective tax management of this type of business, the agency must have flexible policies and timely adjustments However, there are still services that tax authorities are still confused about in collecting taxes because of the complexity and

sophistication of the way they do business Typically, Grab, Uber, and Airbnb, Uber has established a subsidiary in the Netherlands and transferred ownership of branches in other countries to this company for the purpose of transferring all external revenue sources America is mainly about the Netherlands and avoids the US tax system With the flexibility of a private company, tax policy experts say that Uber's tax avoidance strategy is almost perfect.[ CITATION ThS20 \l 1033 ]

2.6 Conditions where the company can apply this concept.

In this growing economic era, the concept of sharing economy is becoming a popular trend in business industries Businesses can apply this concept to their operations for certain conditions

First, when resources are underutilized, companies can apply the concept of sharing economy to get the most out of that resource For example, restaurants may share kitchens and blenders, or large companies may share office space, vehicles, or equipment By sharing this resource with those in need, companies can earn profits, increase engagement, and save money on resource procurement and

maintenance

Second, when demand is high and supply is limited, companies can use the concept of sharing economy to meet that demand For example, taxi-sharing services, like Uber or Grab, allow users to sharetheir rides with people who want to ride with them This reduces traffic jams, minimizes traffic, and savesmoney for those sharing the ride

Finally, the concept of sharing economy is often seen as a force promoting environmental

protection and eco-friendliness When people share resources, they can make the most of existing

resources, reduce waste and protect the environment

II Promotion

The marketing mix encompasses the modes of communication used by a marketer to provide information about his products It is persuasive in nature, with the goal of convincing customers to buy your product over competitors It can be built both verbally and visually As a result, a promotional strategy can influence consumers by appealing to their intellect or emotions

In the past, promotion focus on mediums such as television, radio, print, and billboards, is still an effective way to reach a large audience quickly It also offers some advantages such as providing a physical presence that can capture attention and create a sensory experience However, traditional

marketing can be costly and difficult to measure, making it challenging to adjust or adapt in real time Digital marketing, on the other hand, offers businesses a cost-effective method to reach a specific target audience through various online channels such as email marketing, search engine optimization, social media, and content marketing It offers businesses a more personalized approach where they can track andoptimize campaigns quickly to yield better results.

1 User-generated content

1.1 Definition

User-Generated Content (UGC) refers to user-generated content It could be comments, reviews, posts on social networks, forums,… about the company's products and services Businesses do not create this content; rather, they use it to increase the spread and credibility of the brand among consumers

Currently, UGC is becoming an important element in the marketing strategy of companies, especially in the field of online digital marketing Businesses use UGC to market their products by encouraging users to post comments, review products, and share their opinions on websites or other socialmedia channels Therefore, businesses need to make sure they create an environment that is supportive of user contributions and that it doesn't violate the law or cause copyright or trademark issues (coursera)

1.2 Types of UGC

Most people associate "user-generated content" with content created by satisfied customers about your products and services However, UGC can be thought of as an umbrella term for all content related

to a brand that was not created by the brand We can divide UGC into three categories based on the type

of "users" with whom you interact:

-Cusomer-generated content: Customers are arguably the most effective source of UGC for building

your brand A genuine, satisfied customer is the best salesperson for your products Customer-generated content transforms word-of-mouth marketing that occurs in private conversations into content that the rest

of the world can see Customer-generated content can include customer reviews and star ratings,

unboxing videos filmed, product photos, FAQs, and answers….For example: On Shopee, products with a lot of CGC are generally better rated and prioritized According to a Shopee study, free is a product with

at least 30 positive reviews, the rate of hitting that product will increase 8 times compared to products with no reviews

-Employee-generated content: The employee is like a customer, and may volunteer to contribute content

to your brand Employee-generated content is not part of their job description Because there is no obligation, it appears genuine, and while it may not directly generate sales, it may entice others to work with your company as an employee or a partner They can create content, such as: sharing photos and videos that have a brand hashtag, posting company content on their personal social profiles…For

example, Coca-Cola has a program called "Coke Stories" in which employees are encouraged to share personal stories, experiences, and feelings about Coca-Cola on social media platforms such as Facebook, Instagram, and Twitter The employee post has the hashtag #CokeStories and was shared by Coca-Cola's official Instagram account That story will draw attention from the Coca-Cola fanbase, and many social media users have commented, shared, and told about their own experiences with Coca-Cola

-Creator-generated content: used to refer to content created by independent creators or users, rather than created by organizations, brands, or companies CGCs often appear on social media platforms and personal websites of individuals or groups of individuals, such as: influencers share a photo of your product, …[ CITATION Bra18 \l 1033 ]

1.3 Types of UGC feedback

other to help create a positive community Users often share their articles, reviews, photos or videos to help other members learn about the product or service For example, foody bloggers will share their feelings about a restaurant that has just opened or give advice to others about products and services there

-Individualistic: focus on expressing the individuality and difference of the user Users often create their

own articles, photos, videos, and comments to express their personal views or recommend products or services in a personal way For example, when a user buys a new product and wants to share on social networks with his community information and feelings about that product

-Competition: comparison and competition Users often compare and rate their products or services

against those of competitors For example, analysts will compare two different products to evaluate the difference between each product (Coursera)

1.4 Issues in user-generated content

For all of the benefits of user-generated content and the social proof it provides, there are a few drawbacks to consider All of these are reasons why some brands choose not to allow or limit UGC on their websites

First, copyright violation, users upload or share content that contains copyrighted material without the permission of the copyright holder This can include using copyrighted images, videos, music,

or text in UGC without the proper license or attribution To avoid copyright violations in UGC, it's important for users to obtain proper permission or licensing for any copyrighted material they wish to use and to properly attribute the source of any material used Similarly, online platforms that allow for UGC, such as social media or content-sharing websites, have a responsibility to ensure that their users are not violating copyright law and may take certain measures to prevent or remove infringing material

Disney was adamant about claiming ownership of its users' content The company desired the freedom to publish the UGC on its social media feeds, website, and elsewhere as it saw fit, without any users claiming the company misappropriated its UGC Users who responded to Disney's tweet with UGC may not have expected Disney to republish their work Including a disclaimer like this is one way to inform them of Disney's intentions

Second, Offensive or Inappropriate Content, On social media, the user is usually held legally responsible for this type of content However, reposting offensive content may put your company in violation of a social media platform's Terms of Service, or even the law When creating your UGC campaign, you can, however, avoid creating offensive, inappropriate, or abusive content You should also exercise caution when selecting content for republication