mkt318 individual assignment topic how digital tools are changing marketing mix 4ps

INTRODUCTION...21.1 Overview of changing in digital world...21.2 Definition of marketing mix ...31.3How digital tools are changing elements of marketing mix...4II.. Thanks to the applica

MKT318 – Individual Assignment

Topic: How digital tools are changing marketing mix (4Ps)

Student name : Duong Van Thang

Roll Number : HS163036

Class : MKT1708

Course : MKT318m

Lecturer : Nguyen Minh Quang

Room : Be-211

Table of content

I INTRODUCTION 2

1.1 Overview of changing in digital world 2

1.2 Definition of marketing mix 3

1.3How digital tools are changing elements of marketing mix 4

II HOW DIGITAL TOOLS ARE CHANGING MARKETING MIX 6

2.1.Product 7

2.2.Promotion 9

2.3.Place 11

2.4.Price 12 III Suggestions for companies to react towards the changing of digital marketing 14

I, Introduction.

1.1 Overview of changing in digital world.

- Appeared right after the 3rd industrial revolution about less than half the world when computers and electronic devices first appeared in 1970 and then in the 1990s when the internet appeared Based on the development of the influence scale, the spillover of digital transformation occurs at a rapid pace with global

regulation Based on those factors, it is predicted that it will change the entire production, management and management system around the world

- Digital business is one of the fields of technology application, communication and advertising that developed very strongly right after the 4.0 industrial

revolution Thanks to the application of digital business information technology, it has changed the power of customers' shopping activities, changed the device in the socio-economic economy The media is responding globally, catching the trend of this revolution digital business has emerged Digital business includes

e-commerce, electronic media, information, entertainment and education In buying and selling, the different environment and the way to approach customers also changes accordingly

For example: In the past ten years, surely few people would have thought of moving to e-commerce platforms, social networking sites to order certain items such as confectionery, clothing, cosmetics, etc … but the day that is a second to all the normal enjoys even wide application because it will save people the time and effort to buy an item

- This shows that the digital change has helped the world to have a new and modern business environment As in the past marketing methods were often used directly through advertising banners, through retail partners, today it is a broader advertising strategy through the media

1.2 Definition of marketing mix.

Marketing mix is a set of marketing tools and strategies that businesses use for the purpose of promoting their brands or products to target customers Marketing mix strategy (4Ps)

- Product: The product mentioned here can be a tangible product or a service launched by the business Once the product is established, the next decisions need

to be made regarding:

+ Brand strategy

+ Product Mix strategy

+ Product Line Strategy

+ Strategy for Product item

- Price: Based on the cost, supply-demand level of the product and the target profit,

it is possible to consider building a pricing strategy for the product

- Place: Bringing circulation to help products reach consumers At the same time, intermediary distribution policies will affect the profits of enterprises In order for goods to be consumed, there should be actors involved in the distribution of products or services of the enterprise: manufacturers, distributors and customers -Promotion: is the use of communication campaigns to promote buying and selling activities that are more profitable for the business and strengthen the brand of the business in the market

1.3 How digital tools are changing elements of marketing mix (in general)

-Digital media has changed the way that marketing professionals do their work Traditional methods of marketing are disappearing, being replaced by all kinds of new income generating opportunities, challenges of their own Continue reading to learn more about how digital media is affecting the marketing mix and the emerging career opportunities in the field

-Maybe without realizing it, you are always interacting with digital media It appears on all types of devices, including mobile phones, tablets, computers, digital billboards, and video games Digital media is how many people consume news and entertainment, and new forms of it, such as virtual and augmented reality, are always being created or developed In many ways, digital media reimagines traditional forms of media, such as newspapers, magazines, broadcast television and radio

-The rise of digital media over the past two decades has revolutionized the way marketing professionals do their jobs New revenue streams, growing use of media, and often bored consumers of advertising have all caused a major disruption in the traditional marketing mix It is impossible to enter a career in marketing or advertising without a solid understanding of digital media, including social media insights, virtual reality and podcasting, to name just a few emerging digital media trends

II Digital media has had a direct impact on the marketing mix:

+ Advertising recognition and avoidance : Many digital streams have ad blockers

or allow users to opt out of certain ads , so businesses must develop methods to overcome these obstacles

+ Customer Service : Digital media that allows customers to respond to their complaints to the community ( friends , relatives , followers ) Typically,

"Reviewers" recently appeared on social networking sites such as Facebook, Tiktok, Instagram, etc

+Influencers: Partner with influencers on social networks, pay them to promote your business brand to be able to increase sales immediately in the target market +Barrier to entry: The popularity of digital media has lowered the barriers to entry

in the marketing field Businesses can choose to advertise through potential markets on media channels and display on search engines at a cheaper cost than direct advertising through billboards or advertising on the Internet or Television

2.1 Products.

Products greatly affect marketing activities for businesses You need to determine which target customers your products and services need to target to optimize your marketing campaigns It is not possible to advertise a youthful active clothing product to the elderly, this is like a mistake and waste and it is difficult to bring optimization to the advertising campaign to bring profit to the business The product's purpose, function, or innovation will influence the marketing mix and how the product or service should be identified and positioned

2.1.1 Customer Co-Creation

- Collaborating to create value by ordinary people whether a company or not Business allows consumers to submit ideas , designs or content , which is an approach to product or service development where the customer is actively involved in the design and contributes new ideas And in digital marketing it plays

a central role of the consumer Specifically, this is also a means of listening to customer feedback to be able to improve the product better to suit the needs of customers

- Specifically, this is also a means of listening to customer feedback to be able to improve the product better to suit the needs of the customer client

2.1.2 Sharing economy.

-The sharing economy is "a business system in which goods or services are shared between individuals, for free or for a fee", the individuals do not necessarily know each other Another definition is “an economy in which individuals conduct peer-to-peer transactions to share access to idle assets or services, promoting

cooperation.” The sharing economy, a system scalable socioeconomic system using technology-enabled platforms that provide users with temporary access to tangible and intangible resources that can be sourced from the community

-Determining characteristics of sharing economy companies:

+Directed Access

+Economically

+Technology-based matching platform

+ Enhance the role of consumers

+Supply from the community

-At its core, marketing enables exchanges between buyers and sellers

Traditionally, these exchanges involved the perpetual transfer of ownership However, over the past decade, more and more exchanges are taking place in the sharing economy, where access temporarily replaces ownership Powered by the tools of the digital revolution (e.g Internet access, smart devices, peer-to-peer reputation systems), the sharing economy has flourished across the globe a wide range of products and services, including transportation (e.g Lyft),

accommodations (e.g One Fine Stay), clothing (e.g Rent the Runway), financial services (e.g., Transferwise ), food services (e.g Deliveroo), and office space (e.g WeWork) Given its impressive growth rates, it's no surprise that the sharing economy is heralded as a global transformation

-The sharing economy has exploded and is changing the way we travel, where we stay and what we wear, which has important implications for the marketing mindset The sharing economy challenges traditional views on the nature and role

of organisations, marketing processes and value creation

2.2 Promotion.

It is a very important component in the Marketing Mix because it can promote brand recognition and sales at the most favorable prices so that customers have the

opportunity to choose Promotion in the marketing mix is fully responsible for the positioning of the media for the product based on the following factors:

-Personal Selling: An effective way to manage relationships with individual customers However, this factor requires the cost of paying for a large number of employees and the cost will be very high, so it is suitable for high-margin products and services such as cars, houses, etc

- Sales Promotion: aimed at intermediaries in the distribution channel to stimulate them to sell more to the business by providing them with incentives

-PR: Is a non-stop activity in an effort to establish a connection to maintain the credibility, affection, mutual understanding between the business team and customers

- Direct Marketing: are activities carried out not through intermediary distribution channels but directly between businesses and customers

There are also a number of other factors such as advertising , online promotions , sponsorships , fairs and trade shows

2.2.1: User-Generated Content

(UGC) is the content created by the customers themselves - the people who use the products and services, not the businesses The content of UGC is also very diverse,

be it reviews, images or video reviews about a certain product or service through experience

- In the era of extremely developed internet, customers will have many channels to receive information and content and this also applies to the content in the advertising campaigns of the business Due to too many hype from businesses, customers are gradually losing faith in it Therefore, advertising campaigns from businesses are gradually losing their position and UGC begins to appear

- UGC helps businesses solve the trust problem in their marketing strategy more than traditional advertising

+ Motivate consumers to buy

+ Highly authentic

+ Create trust for consumers about products and services

+ Build customer loyalty

+ Create a lot of content for customers to refer to and choose from

+ Stimulate the desire to own products for customers

2.2.2 Doppelganger brand image ( DBI)

The DBI is a disparaging collection of images and stories about a brand that is circulated in popular culture by a loosely organized network of anti-brand activists, bloggers, and bloggers Express an opinion Such images are most likely to be spread through social media, blogs and websites of brand adversaries In essence, it's a brand parody created and developed by a community, not an organized unit

- Some interesting features about DBI:

+DBI is created for brands that have a fake image of themselves, with the aim of misleading audiences and customers

+DBI is mainly done for big brands, because these will be easily noticed in the media

+DBI is mainly found on digital media (like Twitter, Facebook, Bogs, Websites, etc.)

- Take Red Bull as an example Among the many brands that offer energy drinks, Red Bull can still encourage us to buy their product by telling a compelling story Mainly by inviting consumers to be a part of that story To identify themselves with the story

2.3 Place

- The physical location of the goods or services A promising product can have great pricing and marketing but poor sales if customers are hard to find

Companies must ensure that customers can find and buy their products easily

- Finding the right place to market and sell your products is an important factor in reaching your target audience No business chooses a deserted place where few customers visit to display its products or in digital marketing, no one will want to display their products on e-commerce sites, websites, etc

- To decide on the best place to market and sell products and services, you should research and choose the locations that the target customers will visit

- In Marketing Mix: Place includes traditional location and distribution channel

+ Direct channel: The manufacturer directly supplies the product to the consumer Selling over the internet is also a way of selling directly to consumers This method has the benefit of helping businesses control products and consumer experiences + Indirect channel: Businesses will use intermediaries to sell products to

consumers This channel is suitable for large manufacturers or low value products Ex: Instant noodles, bottled water,

- A few popular strategies of Place in Marketing Mix:

+ Wide distribution strategy

+ Exclusive distribution strategy

+ Selective distribution strategy

2.3.1 New retailer.

-Retailers need to interact with the changing technology, customer needs, markets, sales force, financial control and governance otherwise it is very difficult to survive in a single market The environment is changing too fast and challenging, difficult like the fourth industrial period (4.0) accompanied by the unpredictable Covid-19 context, which has a serious impact on both retailers and consumers consumption

-Focus on core technology and prioritize the development of retail technology in line with the actual conditions of the business It is advisable to have a technology development team or hire a third party to cheaply collaborate Technology brings great competitive advantages, increased revenue, reduced costs in the long run, increased customer experience, increased loyalty of online customers as well as brick-and-mortar customers Technology needs to be invested in a methodical way, including the pre-during and post-sale process Bringing customers into the technology experience and the intelligence of technology solutions make every operation of the buyer and seller simple, accurate and perfect

-Retailers need to focus on a customer first, customer first strategy: studying customer behavior, trends, customer-centricity, creating unique values and experiences Unforgettable for customers

-Need to train and improve skills, awareness, techniques and customer service attitude in the sales force Combined with technological elements in the sales process of the sales force of multi-platform online sales channels (via website,

mobile application, livestream, e-commerce platform, social network, tools) search, email marketing…), building customer service processes with the participation of technology and human factors and helping to increase customer experience Salesforce management and processes should be lean, simple, and highly adaptable, third-party sales solutions can be outsourced to drive sales and customer reach …

-Increase market share expansion and protect domestic market share, reduce dependence on international partners, conduct sales, merge points of sale to increase the strength of the retail chain Upgrading low-tech or no-tech points of sale into points of sale with modern technology and management methods

2.3.2 Desktop manufacturing

-Computers can be a powerful tool to assist small companies in many aspects of marketing new products and services With many free apps and programs available

to help businesses track interactions with their customers, the use of technology in marketing is becoming a more important piece of the sales puzzle

+Web-Based Promotion

+Market Research Tools

+Distribution Channel Tracking

+Creating Ads for Other Media

2.4 Price.

The price of a product or service significantly affects marketing efforts and focus Products in a given market at the lower end of the price range may require a marketing campaign that emphasizes value and savings Marketing a more expensive item instead may mean focusing on its quality and enhanced features Pricing also determines the marketing position For example, marketers may wonder if advertising would perform better in magazines for a niche audience or as ads aired in TV shows watched by middle-class families

2.4.1 Pay What You Want

(PWYW) is a strategy that allows customers to make decisions about how much to pay for the product or service they want It allows sellers to test market demand without knowing the price elasticity of the product or service Different from other