OULINE CONTENT1 Introduction 3Provide an overview of the changing digital landscape and its significance in modernmarketing.Define what the marketing mix 4Ps - Product, Promotion, Price,
Trang 2OULINE CONTENT
1 Introduction 3Provide an overview of the changing digital landscape and its significance in modernmarketing.
Define what the marketing mix (4Ps - Product, Promotion, Price, Place) is and its historicalcontext.
Discuss the overarching impact of digital tools on marketing in general.2 How Digital Tools are Changing Marketing Mix
Trang 33 Discuss How Companies Can React to the Changing Digital Marketing Environment 9
Trang 41/ Introduction
The digital landscape is the collective name for websites, emails, social networks, mobile devices(tablets, iphones, smartphones), videos (YouTube), etc And businesses rely on this technical context to reachcustomers to carry out production and business activities.
Inheriting the achievements of the 4.0 revolution, we have been applying digital technology to manyaspects of life People spend a lot of time on digital devices, it can be said that the digital transformationprocess is happening silently, integrated into our daily activities The outstanding development of digitaltechnology such as the Internet, mobile phones, artificial intelligence has brought people certain wonderfulexperiences, society has developed and become richer, and life has become easier easier And that digitaltransformation has a major impact on business models.
Today digital technology has played an important role in marketing Digital technology helps businessesknow customer needs and their expectations about products At the same time, businesses can evaluatecustomer behavior Based on the information they receive, companies can adjust their marketing strategiespromptly.
Additionally, on all kinds of digital platforms, data is generated through all kinds of people'sinteractions Through digital technology, companies can collect data from digital platforms By processing thedata they have collected, companies can gain all kinds of useful information and change their marketingstrategies.
According to Philip Kotler “Marketing Mix is the set of controllable variables that a company can use toinfluence buyer response.” Controllable variables in this context refer to the four Ps [product, price, place(distribution) and promotion] Every business strives to build such a 4'P component that can create the highestlevel of consumer satisfaction while meeting the organization's goals So, this mix is assembled keeping inmind the needs of the target customers, and it varies from one organization to another depending on itsavailable resources and marketing objectives.
Product: Product refers to the goods and services provided by the organization The products around us
such as clothes, shoes or books, are all products All of these things are purchased because they satisfy one ormore of each of our needs We are paying not for the tangible product but for the benefit it will bring So, insimple terms, products can be described as a set of products benefit that the marketer offers to the consumer at aprice.
Place: Goods are produced for sale to consumers They must be made available to consumers in a place
where they can make purchases at their convenience For example, a product is manufactured in an industrialpark and consumers buy these products at retail stores Therefore, it is essential that the product is available in
Trang 5distributors, wholesalers and retailers that form a company's distribution network (also called distributionchannels) The organization must decide whether to sell directly to retailers or through distributors/wholesalers,etc It may even plan to sell directly to consumers The choice is guided by a series of factors that you will learnabout later in this chapter The model below is an example of a distribution channel.
Promotion: If the product is produced keeping in mind the needs of the consumer then it is the right
thing to do Priced and offered in stores convenient to customers, but without consumers being informed aboutprice, features, availability, etc., the brand's marketing efforts may not be successful Therefore, promotion is animportant component of the marketing mix because it refers to a process of informing, persuading andinfluencing consumers to choose a product to buy Promotion is carried out through means of personal selling,advertising, propaganda and sales promotion It is done primarily to provide information to potential consumersabout the availability, characteristics and uses of the product.
Price: Price is the amount paid for a product or service If product, place or promotion bring value to
customers, then price is the only thing that brings benefits to the business, this determines the life of eachbusiness Therefore, setting product prices is a difficult job Many factors such as the demand for a product, thecosts involved, the consumer's ability to pay, the prices charged by competitors for similar products,government restrictions, etc must be kept in mind while fixing the price.
For more than 50 years, the "4Ps" - price, product, promotion and place - have been the foundation of asuccessful marketing plan Behind that success are certainly big reasons Even as consumers' online activitieschange the way we deliver messages and interact with audiences, it still makes sense to focus on price, product,
Trang 6must focus on using technology to nurture relevant experiences According to a survey conducted by RothsteinTauber, a marketing research firm based in Stamford, Conn., 81% of shoppers conduct online research beforeentering a store, and the average Consumers spend 79 days gathering information before making big purchases.As a marketer, the development of marketing mix is a problem that you need to solve, and it is also a greatopportunity for marketers to approach and develop.
2/ How Digital Tools are Changing Marketing Mix
The rapid development of technology has had a strong impact on marketers as well as marketing mixstrategies The strong development of digital tools also requires marketers to update trends and transformthemselves to keep up with the times.
These factors that impact digital tools on marketing in general can include elements of customeranalytics, digital transformation that allows companies to collect and analyze customer data in real time,creating better, more personalized marketing campaigns Besides, it also impacts multi-channel marketing: Therise of diverse digital channels brings more opportunities to reach customers more effectively, changingtraditional marketing methods Also impacts social media outreach: Social media networks provide automatedcommunication, promote direct marketing, and keep a finger on the pulse of customers on social media Alsoautomation and AI: Tools like CRM, AI chatbots, email automation, etc is leading the shift from manualcustomer service to automation and personalization
2.1/ Product
With the development of digital tools, businesses invite customers to contribute ideas or select potentialnew product ideas for the business, this is called co-creation Because brands will know that customercontributions can support brand initiatives
Due to the explosive development of technology, the gap between consumers and brands is increasinglynarrowing, so businesses are trying to take advantage of this by asking consumers to evaluate new productlines about to be released Consumers today can support brands in creating and growing their own productsbeyond simply being buyers.
Trang 7customer co-creation shows how this partnership can help create new communities of fans around the world.The LEGO Ideas initiative has also attracted a lot of media attention and built customer loyalty.
The 4.0 digital revolution has enhanced connectivity between individuals An illustration of linkage isthe sharing economy The sharing economy model is a technology-enabled platform that provides users withtemporary access to community-sourced resources.
For example, Grab is an automatic navigation application used to order and dispatch taxis onsmartphones, aiming to improve the local taxi market with a simple start, saving costs for both providers (service provider (transportation company) and bridge (passenger) With this technology, the car sharing servicewill optimize the connection process between taxi companies and passengers.
2.2/ Promotion
The growth of digital tools offers marketers a new source of content: user-generated content (UGC).User-generated content is a model in which the person directly producing online content about a brand orproduct is the customer This content can be presented in any format Customers tend to trust other customersmore than brands A survey shows that the majority of internet users trust reviews, comments, and photosposted by other customers more than those posted by the brand itself It is this psychology that brands haveused to develop UGC as a tactic to elevate their brands UGC turns loyal customers into brand ambassadors forthe brand and builds engagement within their community with the product The simple idea behind UGC is touse images and comments from loyal customers to turn them into buying advice with greater conviction andconviction.
With UGC, digital media channels play a very important role in the current social context Cost savingsis the first advantage we can see, using digital channels reduces costs compared to traditional channels.Besides using digital marketing channels to increase customer reach, customers will also often participate in
Trang 8that users can create diverse content, campaigns using user content can take advantage of the creativity of thecommunity, creating many types of content diverse forms such as images, videos, articles, and many otherforms Digital advertising also creates a strong influence When users participate in creating content, they canbecome influencers with large audiences on social networks, helping the campaign spread widely.
For example, with Monsoon - a fashion brand, Monsoon's strategy is simply to call on customers totake and share product photos as a social post, with the hashtag #MyMonsoon Monsoon will then gather allthe posts into a collection, which functions as a digital showroom There, customers see real images of theproduct, used by real people (not models), real light (not lights), real life (not a studio).
Doppelganger Brand Image (DBI) is a collection of anti-brand or defamatory actions that have beendisseminated through stories, images, and other loosely organized formats
For example, fast fashion retailer H&M saw a wave of boycotts when, under strong pressure fromChina, they changed their online map to include the "cow tongue line" being banned This action caused awave of outrage and boycott among the Vietnamese people
DBI frequently focuses on famous brands that are perceived to lack authenticity or are seeking tomanipulate consumer emotions through the actions of their parent company It takes a lot of effort to develop anexcessive and sustained series of anti-brand actions These initiatives often stem from an impression of thebrand's nature – lacking authenticity Next, as mentioned, DBI focuses on famous companies because they havea high level of awareness and attract more individuals Today, the majority of DBIs were founded anddiscovered as a means of private protest and often exist on personal accounts.
Trang 9therefore, consumers frequently switch to competitor brands DBI can also change the timing to react tochanges in the market Because of the inherent risks, using DBI as a weapon to attack the opposition isconsidered inappropriate.
Digital advertising brings huge opportunities to marketers while also posing many potentialshortcomings In terms of quality management, not all of the content we create is of the quality we would like.Campaigns must ensure quality management to avoid content that is poor quality or could damage the brand.The second problem may be copyright issues, content used for business activities may be violated or pirated ifnot strictly controlled It is difficult to control because of the power of digital, information can be broadcasteverywhere and if the information and images deviate from the brand's directions, it can cause unpredictableconsequences.
2.3/ Price
The Pay What You Want (PWYW) pricing strategy is to allow customers to price the productthemselves and pay an amount they feel is appropriate for the product or brand A characteristic of this pricingmodel is that customers tend to pay more when they see an image of the product, brand or simply know moreabout it, than if they have never heard of the product , that brand, they will pay a lower price.
For example, in October 2007, the British band Radiohead released their latest album – In Rainbows –on the Internet The music group allows fans to download albums for free and make offers, to support thegroup, people can pay any amount they want The group then revealed downloads of their new album generatedmore profit than all their previous albums combined.
Another attractive form of payment is Freemium It allows customers to try out some features of aproduct or service before paying to unlock full functionality For example, Canva is a website that helps youcreate fun and ready-made templates, you can use them for free, but if you want to use more advancedfunctions, you have to pay a small fee to get it Or like Youtube, we can still use it completely, but when usingit, ads will appear, and if you want the ads to not appear, you have to pay a fee.
2.4/ Place
New retail is a set of strategies (both physical and digital) that are how physical retailers respond toadapt to the challenges posed in the digital world According to a survey, people living in small towns are morelikely to shop online than those living in urban areas due to the fact that residents in city centers have access tostores It's actually easier than it is for residents of small towns A lot of retailers are trying to merge theirphysical and digital components To optimize customer touchpoints, many retailers are trying to merge bothdigital and physical components.
And digital tools are a great opportunity for the development of online sales channels Digital tools helpoptimize processes, using digital for site management can help optimize manufacturing, transportation, and
Trang 10experience, digital location technologies can improve customer experience by providing information aboutnearby locations and services, facilitating shopping or sightseeing An important point is that digital systemshave the ability to collect data from physical locations, helping businesses better understand customer behaviorand optimize business strategies Digitalization opens up a huge market for each brand by creating intuitiveexperiences and engaging customers from afar.
But besides the development of digital tools, there are also many challenges that need to be resolvedsuch as data security issues, the challenge lies in ensuring information security and avoiding the risk of beingviolated Legal Challenges Complying with legal regulations regarding ownership, privacy and use of digitalvenues can be a complex challenge Skills and people: To implement and manage digital location strategies,people with the right technical skills and knowledge are needed This may require training or hiring newemployees.
Desktop manufacturing is the ability to produce physical items from desktop computers Anothermeaning is the ability of humans to self-produce in applying digital tools to create products For example, whenmentioning Desktop Manufacturing, we must mention 3DPrinting technology 3D printers are considered a newindustrial revolution and will significantly change the future economy, with important implications for the wayproducts are distributed in the market 3D printing is not only applied in the production of furniture or weapons,it is even breaking down design barriers in the culinary arts Using a plastic 3D printer, users can actually printchocolates based on digital designs from 3D software or 3D print edible foods using fresh cream, flour, etc.Some features include being faster than many other manual methods, not taking much time, not wastingmaterials, or being low cost, and also saving many other costs: rental costs workshop, delivery costs, laborwages, and no setup costs Because 3D printers are all pre-set up, for difficult designs, users do not need toworry too much because the printer can still do that task well However, 3D Printing can have some negativeeffects on retailers.
3/ Discuss How Companies Can React to the Changing Digital Marketing Environmenta/ Product
The more people who contribute to a product, the more creative ideas the company has Companies andbrands that adopt this Customer Co-Creation strategy should offer financial incentives or let users berecognized, so they feel more respected and contribute To increase the authenticity of customer opinions, thecompany can let customers choose among the opinions themselves, and at the same time coordinate with theR&D department to check before choosing to increase authenticity as well as enhance credibility company'sreputation in the minds of customers A typical example of a company that successfully applied a customerco-founder strategy is Apple Inc Steve Jobs and Steve Wozniak, the two founders of Apple, created anincredibly successful technology corporation based on the philosophy of putting customers first They always