Digital marketing is everywhere. Understanding every element of your marketing process enables you to create better, highly functioning, and profitable businesses online.
Marketing mix explains the cluster of activities, strategies which are applied by various organizations to promote its product or service in the market.
The Marketing mix was created by Neil Border, American Marketing Association President in 1953. In 1960, the inception of marketing mix was coined by E. Jerome McCarcthy in the book called “Basic marketing; A Managerial Approach”.
Online marketing offers many effective strategies to choose from in your marketing mix and ignoring it is like opening a business and not telling anyone.
Many business owners fool themselves into thinking that if their product is excellent, the market will buy. Even great products are simply not enough. Marketing must be one of your major activities if you want to become a successful business owner. And that is the reason you should study the Ps of Digital marketing.
The Ps of digital marketing are product, price, promotion, place, people, process, physical evidence, personal relationships, packaging, positioning, and performance.
Today, we will take a look at the 4 major P’s of Marketing mix.
Understanding the P’s of Marketing Strategy
This defines the service or item which is sold by sellers to buyers. A product can be in any shape like physical items or services. When thinking about a product, consider the key features, benefits, needs, and wants of customers.
Nowadays, people prefer to compare and buy products online rather than going with the traditional purchase. It’s hard to find things that won’t sell online.
A suitable product selling is a key to a successful business. Gayle Fuguitt once said, ‘we want to know what consumers are looking for, what their values are, and how we can meet their needs. It’s always important to consider the business position in the current marketplace. If you advertise as having a very high-quality product, your product should reflect that claim. Products decisions include function, packaging, appearance, and warranty quality.
You need to consider how your product or service promotes itself, the unique aspect of your product or service which are remarkable, vital or network effects your product provides and so on.
Components of Product
♦Content, Services, and Software.
Why Redesigning and Packaging products is essential
-Product is a message you are trying to get across to a consumer and how you package your message is just as important as the message itself.
-Products and packaging deliver lasting and meaningful impressions.
In Addition, you can boost your products by soliciting consumer feedback about what your users like and don’t like about your existing product line, or to introduce a more environmentally friendly or cost-effective approach to your packaging.
Pricing can dictate the success of your products.
This defines the value of products, which is paid by buyers to sellers in return for products and services. That is, price is the perceived value of an online product specified in product and services. You need to introduce a price point that will secure your place in the market, satisfy your customers, and give your business scope to thrive and develop.
Your prices are more than just numbers, the way you tag a price on your products or services can be a reflection of your business’ identity, how you view and treats your competitors, and how you value your customers.
If you are underpriced, not only will you lose money but your product could also be viewed as cheap and unreliable. On the other hand, overpricing your product means you run the risk of pricing yourself out of the market.
How to determine the price of a product
Selling price= cost price + profit margin.
Before calculating your selling price, it’s important to understand the average selling price of existing products already available in the market.
Average selling price= total revenue earned for a product ÷ number of products sold.
5 Pricing Strategy you should know
- Price skimming: This is setting high prices when a product is introduced and then gradually lowering the price as more competitors enter the market.
- Market Penetration: This is the opposite of price skimming. Instead of starting high and slowly lowering your prices, you take over a market by undercutting your customers. Once you develop a reliable customer base, you raise the price.
- Premium Pricing: The key to this pricing strategy is developing a product that is high quality and that customers will consider to be high value.
- Economy Pricing: This target customers looking to save as much money as possible on whatever goods and services they are purchasing.
- Bundle Pricing: This involves profits on low-value items outweighing losses on high-value items included in a bundle. That is, companies pair several products together and sell them for less money than each would be individual.
Components of Price
♦One-Time, Free, Subscription.
Just choose the right price tactics that work best for you. It’s important to keep an open mind, to make sure that your pricing output reflects the market needs.
Promotion is the activities that make products acquire customers and increase sales. It’s the activity or action that is taken to sell or promote a product.
While your products may be unique, they cannot stand out online without proper channels for acquiring and retaining customers. According to Jeff Bezos, Founder and CEO, Amazon, “your brand are what people say about you when you are not in the room”.
Components of Promotion
♦PR, Advertising, and Organic.
Channels of Online Marketing
♠Search Engine Optimization[ SEO]
♠Search Engine Marketing[SEM]. This include Google, Bing.
♠Social Media Advertising
Place decisions are associated with distribution channels and ways of getting the products to the targeted customers.
Components of Place
♦ Website, Online Store, and Marketplace.
What to remember while building a website
- Evaluate and decide on the e-commerce platform to use, building out the site architecture, content and design.
- Build a vibrant, responsive, user-friendly site that allows customers to purchase in just a few clicks.
Benefits of P’s of Online Marketing
- It helps track the results used strategies in real-time with the use of web analysis.
- It develops fast and new ideas on how to improve your tactics and methods of collecting data.
- It helps you to set prices and update campaigns around buying or purchasing habits of customers and clients.
- You can promote your products online in an easy to understand manner by creating interactive content which has the power to reach a wider audience.
- It helps to innovate and keep business growth achievable.