Blog Entry 4a

Blog Entry 4

4a. Briefly summarise the implications of the internet on each element of the marketing mix (Consider 4 Ps)

The marketing mix refers to Product, Price, Place and Promotion.

For Product, internet provides chances for varying the core product through new information-based services and also the extended product should be reviewed.

For Price, the internet leads to price transparency and commoditisation and hence lower prices. Dynamic pricing gives the ability to test prices or to offer differential pricing for different segments or in response to variations in demand. New pricing models such as auctions are available.

For Place, it refers to place of purchase and channel structure on the internet. There are three main locations for e-commerce transactions: seller site, buyer site and intermediary. New channel structures are available through direct sales and linking to new intermediaries. Steps must be taken to minimise channel conflict.

For promotion, it refers to how marketing communications are used to inform customers and other stakeholders about an organization and its products. The internet offers a new additional marketing communications channel to inform customers of the benefits of a product and assist in the buying decision.

 

References:

Chaffey, D. and Ellis-Chadwick, F., 2016. Digital marketing: strategy, implementation and practice (Vol. 6). Harlow: Pearson.