5 Minutes Discussion

what do you think the difference

between traditional and digital
The Marketing Mix
4Ps 7Ps 4Cs
Customer needs
Product People
Convenience
Place Process
Cost to the
Price Physical evidence
customer
Promotion
Communication

1960 1980 1990

Jerome McCarthy
The New Marketing Mix

8Ps
Product People
Place Process
Price Physical evidence
Promotion Partnership
CO-MARKETING
1960
2001
A partnership agreement reached
between different businesses to
promote each other, typically based
on sharing content (and potentially
promotions) principally to the
audience of owned media channels
such as social media, blog and email Chaffey and Smith
Marketing Mix in the Digital Era
 New
Marketing
Mix
(Product)
The New Marketing Mix

Varying The Core Product

Offering Digital Products

Changing The Extended Product

Conducting research online

Speed Of New PD
PRODUCT
Speed Of New Product Diffusion
The New Marketing Mix - PRODUCT
Varying The Core Product

Can I offer additional information or transaction services to

my existing customer base?
The New Marketing Mix - PRODUCT
Varying The Core Product

PROSUMER PROducer + conSUMER

A prosumer is a person who consumes and produces a product.

Alvin Toffler

• He saw a world where interconnected users

would collaboratively ‘create’ products

[Link]
The New Marketing Mix - PRODUCT
Offering Digital Products

SUBSCRIPTION
The New Marketing Mix - PRODUCT
Offering Digital Products

PAY-PER-VIEW
The New Marketing Mix - PRODUCT
Offering Digital Products

BUNDLING
The New Marketing Mix - PRODUCT

Changing The Extended Product

Endorsement:
From celebrities, industry insiders,
industry gurus, and big-name
authors
The New Marketing Mix - PRODUCT

Changing The Extended Product

Testimonials:
Generally come from your readers, clients, and ordinary citizens
The New Marketing Mix - PRODUCT

Changing The Extended Product

Customers comments
The New Marketing Mix - PRODUCT

Changing The Extended Product

24/7 & live customer service

The New Marketing Mix - PRODUCT

Conducting Research Online

FOCUS GROUP QUESTIONNAIRE CUSTOMER FEEDBACK

[Link]
The New Marketing Mix - PRODUCT

Conducting Research Online

Web Analytics

are web analytics services used in the measurement,

collection, analysis and reporting of web data for
purposes of understanding and optimizing web usage
The New Marketing Mix - PRODUCT

New Product Development

SUCCESS FAILURE SHELVED

The New Marketing Mix - PRODUCT

New Product Diffusion

• Word-Of-Mouth communication
on the impact of the rate of
adoption of new products.
Digital CONCEPT
CUSTOMER CO-
CREATION
The New Marketing Mix - PRODUCT

Customer Co-creation
• User-Created Content (UCC)
• User-Generated Content (UGC)
• Is any form of content, such as
images, videos, text and audio,
that have been posted by users on
online platforms.
"Innovation happens everywhere,
but there is simply more elsewhere than here."
Customer Co-creation

REQUIREMENTS:
• A firm must convince its customers to submit their
ideas, to give them contributions.
• Select the few valuable ones for the many that are
less valuable
How to CONVINCE:
• Implicit incentive: Social recognition
• Explicit incentive: Financial reward
Customer Co-creation - HOW
SELECTION ACTIVITY
COMPANY

CUSTOMER

CONTRIBUTION ACTIVITY
Customer Co-creation - HOW

FIXED: Low customer control

SELECTION ACTIVITY

OPEN: High customer control

FIXED OPEN

CONTRIBUTION ACTIVITY
Customer Co-creation - HOW
CUSTOMER-LED
SELECTION ACTIVITY

CO-DESIGNING COLLABORATING
FIRM-LED

TINKERING
SUBMITTING

FIXED OPEN

CONTRIBUTION ACTIVITY
Customer Co-creation - HOW
CUSTOMER-LED CO-DESIGNING COLLABORATING
SELECTION ACTIVITY
FIRM-LED

SUBMITTING/ sharing TINKERING

FIXED OPEN
CONTRIBUTION ACTIVITY
Customer Co-creation - EXAMPLE
Customer Co-creation - EXAMPLE

[Link]
• a co-creation technique we
applied web-based user
design firstly introduced by
the MIT
• Web-based user design
enables customers to select
interactively those features
that they prefer in their
ideal product.
The Audi Virtual Lab
 15 Min Assignment
User-Generated Content (UGC)

• Go to the Tutorial/Editing page in

Wikipedia to learn how to edit an
article.
• Create an account (optional).
• Make your edits in an existing page or
create a new entry.
• Check your entry in 24 hours to see
what happened to it.
 New
Marketing
Mix
(Place)
 • The process always begins with a digital 3D
model - the blueprint of the physical
object.
What is 3D Printing? • This model is sliced by the printer's
software into thin, 2-dimensional layers
and then turned into a set of instructions
in machine language (G-code) for the
printer to execute
Digital Concept- Placement (Place)
What is 3D Printing?
• The available
materials also vary
by process.
• Plastics are by far
the most common,
• Metals can also be
3D printed.
Digital Concept- Placement (Place)
3D Printing in healthcare?!
• Did you know that today in the US hearing aids are
manufactured almost exclusively using 3D printing?
 Dental care

Prosthetics
Digital Concept- Placement (Place)

The Pharmacy Of The Future

 New
Marketing
Mix
(Price)
Digital Concept- Price

• Price Comparison Apps & websites

*

• Price Matching Policies

**

• Pay What You Want (PWYW)

***
81% of shoppers conduct online research
before buying a product.

3 Visited websites, before making their

purchase decision.

70%
Of online shoppers use Amazon to
compare prices of products found on a
company’s website
* • Price Comparison Apps & websites

BEST Price Comparison WEBSITES

* • Price Comparison Apps & websites
* • Price Comparison Apps & websites
BEST Price Comparison APPS
Price Matching Policies
A company may offer a
price-matching guarantee
to its customers based on
the advertised price for a
specific product. If a rival
offers the same product
for a lower advertised
price, the company will
either match the lower
price or refund the
difference if the customer
has already purchased the
product from it
Digital Concept- Price
Pay What You Want (PWYW)

Value-for-Value model is a pricing strategy

where buyers pay their desired amount for a
given commodity, sometimes zero.
Digital Concept- Price
• 2013, [Link] offered their customers the PWYW
option. CEO Mike Faith noted almost all the company's
customers paid full price, with only 10% opting to pay less
• Only earned 15% of total sales (around $2.24/album).

• By cutting out the middle man, it's profit

margin has increased as the average album
sold (accounting for fans who downloaded it
for free) $2.25
 New
Marketing Mix
(Promotion)
 Viral
Marketing
Viral Marketing

• Being able to generate

interest and the potential
sale of a brand or product
through messages that
spread like a virus, in
other words, quickly, and
from person to person
Viral Marketing
• The term viral strategy was first
used in marketing in 1995, in a pre-
digital marketing era, for the
launch of the first PlayStation for
Sony Computer Entertainment

• The idea behind viral marketing is

to INSPIRE people to spread your
message for you.
Ways of Viral Marketing
• The viral effect can spread through many different networks,
including:
• Word-of-mouth
• Email
• Social networking sites (Facebook, Twitter, LinkedIn, etc)
• Video sharing sites (YouTube, Vimeo, etc)
• Web forums
Ways of Viral Marketing … Example

Will it Blend …? iPhone 6

[Link]
DOPPELGANGER
The Doppelganger
• Combination of two German words.
• Doppel which means double.
• Ganger which means someone who is walking.

So in essence a doppelganger is a double walker

The Doppelganger Brand Image (DBI)

• Developing an appealing and distinctive

BRAND IMAGE is an important part of any
firm's product strategy.

• This strong brand image, which leads to

BRAND EQUITY, helps differentiate one firm's
product offerings from those of its
competitors.
The Doppelganger Brand Image (DBI)

• Is a company logo that has been modified in a

pejorative manner.
• Spread via social media, or through websites of
anti-brand activists
 Discussion
The Doppelganger Brand Image (DBI)

How DBI could affect the

pharmaceutical industry
Block the Metaphor
 30 min
Reading

“Branding in the
Digital Age”
The Marketing Funnel
Block The
Metaphor
 “Consumer Decision Journey” (CDJ).
JUNE-09

New research shows that rather than systematically narrowing

their choices, consumers add and subtract brands from a group
under consideration during an extended evaluation phase. After
purchase, they often enter into an open-ended
relationship with the brand, sharing their experience with it
online.
The Consumer Decision Journey
1