Module II: The Internet Marketing Mix

Traditional Marketing Mix – The 4Ps

Element Description
Product Goods or services offered to meet customer needs
Price What customers pay for the product
Place Distribution channels or locations where the product is sold
Promotion Activities that communicate the product to the customer

Internet Marketing Mix – Digital Adaptation of the 4Ps

7 Ps of Digital Marketing

The 7 Ps framework includes both traditional and service-oriented elements — adapted

to suit the digital ecosystem where customer experience, personalization, and
technology play central roles.

1. Product- What you’re offering — a tangible good, service, or digital product.

In Digital Context:

• Can be physical (clothing, electronics) or digital (e-books, software, online

courses)
• Enhanced with digital features: virtual try-ons, demos, tutorials, reviews
• Customization is key driven by AI and customer preferences

Example: Amazon recommends personalized products based on browsing history.

2. Price- The value exchange between the customer and the brand.

In Digital Context:

• Dynamic pricing using real-time algorithms (e.g., Uber surge pricing)

• Freemium models (Spotify, Canva) to hook users before converting
• Transparent and comparison-driven – customers can compare prices
instantly

Example: Flipkart uses flash sales and bundle pricing to attract online buyers.
3. Place- How the product or service is delivered to the customer.

In Digital Context:

• Virtual storefronts (websites, apps, marketplaces)

• Omnichannel integration (online + physical experience)
• Global reach — customers can order from anywhere

Example: Nike sells via its website, app, Amazon, and stores — all synced.

4. Promotion- How you communicate the value of your product.

In Digital Context:

• Social media marketing (SMM) – Instagram, LinkedIn, X (Twitter), YouTube

• Search engine marketing (SEM/SEO)
• Influencer marketing and UGC (user-generated content)
• Marketing automation – email campaigns, retargeting ads, chatbots

Example: Nykaa leverages YouTube beauty influencers + Instagram ads + push

notifications.

5. People- All individuals involved in the digital service delivery and experience.

In Digital Context:

• Customer support teams, live chat agents, chatbot designers

• User reviews, community moderators, influencers

• Builds trust and transparency in a virtual setting

Example: Swiggy customer service + delivery executive = complete people experience

6. Process- How the service is delivered — from user interaction to post-purchase.

In Digital Context:

• Seamless website navigation, fast checkout, real-time tracking

• Automated order confirmations, chat support, instant refunds
• Speed, convenience, and security are key drivers

Example: Zomato’s automated process – order → confirm → track → deliver → rate

7. Physical Evidence- Tangible or visible cues that reinforce brand credibility and
experience.

In Digital Context:

• Website design, interface, app performance

• Customer reviews, trust seals (e.g., SSL badge), testimonials, influencer
endorsements
• Branded packaging, digital receipts, order history

Example: Apple’s website and product packaging reflect its premium brand promise.

The 7 Ps of Digital Marketing help organizations:

• Personalize customer journeys

• Deliver seamless, omnichannel experiences
• Build trust in a competitive, digital-first market

Case Study: Nykaa – Reinventing Beauty with Digital Marketing

Founded in 2012, Nykaa began as an online beauty retailer in India and evolved into a
leading omni-channel lifestyle brand. It successfully applied the 7 Ps of digital
marketing to build a strong online and offline presence. Its customer-first approach,
combined with technology and influencer marketing, made it a unicorn and a successful
IPO-listed company.

Application of the 7 Ps in Nykaa’s Strategy

7P Nykaa’s Digital Strategy

Product Sells beauty, wellness, and fashion products (both physical and digital
services like tutorials). Offers curated collections and personalized
recommendations.
Price Uses dynamic pricing, frequent flash sales, and app-exclusive
discounts. Offers loyalty points through "Nykaa Prive".
Place Began as an e-commerce site; now includes mobile app, Amazon store,
and 150+ physical stores (omnichannel).
Promotion Strong on Instagram, YouTube (Nykaa TV), influencer collaborations,
email campaigns, and personalized push notifications.
People Customer support via chat, expert advice via beauty blogs, and
influencer communities promoting products.
Process Seamless digital customer journey from product discovery to payment
and post-sale service. Efficient return and refund process.
Physical Premium packaging, elegant website design, mobile app interface,
Evidence verified customer reviews, and unboxing experience on YouTube.
Case Study: Swiggy – Delivering Delight Through Digital Marketing

Swiggy, launched in 2014, has become one of India’s most trusted food delivery
platforms. From delivering food to groceries and essentials, Swiggy has consistently
leveraged digital tools to enhance customer satisfaction. Its use of the 7 Ps of digital
marketing provides a blueprint for businesses operating in a high-frequency, competitive
environment.

Application of the 7 Ps in Swiggy’s Strategy

7P Swiggy’s Digital Strategy

Product Core product is food delivery, enhanced by features like Swiggy
Instamart, Genie (pickup/drop), and Dineout (restaurant deals). Offers
live order tracking, food recommendations, and customization.
Price Dynamic pricing during peak hours, discounts, promo codes,
subscription plans (Swiggy One), free delivery offers. Competitive
pricing through partnerships with restaurants.
Place App-based and website-driven ordering system accessible 24/7 in over
500 cities. Uses hyperlocal delivery networks.
Promotion Strong social media presence, app-based notifications, influencer
memes, referral programs, and festival-themed campaigns.
Personalized coupons and SMS marketing based on past orders.
People Includes delivery partners, support executives, partner restaurants, and
AI-based chatbots. Customers can rate delivery and food, adding
feedback loops.
Process Seamless process from ordering to delivery with real-time order
tracking, estimated delivery times, cashless payments, and one-tap
reordering.
Physical Clean, branded packaging, app UI, delivery executive uniforms,
Evidence customer reviews, and rating systems. Email receipts and order
histories offer consistent digital documentation.
7 Cs of Digital Marketing

The 7 Cs model focuses on how brands engage, communicate, and create value in the
digital age. It shifts emphasis from internal marketing variables to customer-centric
digital strategies.

1. Content: The foundation of digital engagement — the messages, media, and value
shared with customers.

Role in Digital Marketing:

• Drives organic traffic (SEO)

• Educates and influences buying decisions
• Builds brand authority

Examples:

• Blog posts, videos, infographics (e.g., HubSpot, Nykaa tutorials)

• Social media content calendars

2. Context: Relevance and personalization of the content to the target audience,

platform, and moment.

Role in Digital Marketing:

• Right message at the right time

• Content adapted to the platform (Reels for Instagram, long-form for blogs)
• Reflects the user’s stage in the customer journey

Examples:

• Amazon showing offers during festivals or payday

• Spotify suggesting playlists based on time of day

3. Community: Building and engaging an online audience that shares interests, values,
or experiences.

Role in Digital Marketing:

• Enhances trust through peer interaction

• Increases engagement and loyalty
• Facilitates word-of-mouth marketing

Examples: Facebook Groups, Reddit threads, brand forums (e.g., Nike Running Club)
4. Convenience: Making the customer journey smooth, accessible, and time efficient.

Role in Digital Marketing:

• User-friendly UI/UX design

• Fast loading websites, quick checkout, mobile-first experience
• Multiple payment and delivery options

Examples:

• Swiggy 1-click reordering

• Myntra’s fast checkout and easy returns

5. Customization: Personalizing products, messages, and experiences to individual

customer needs.

Role in Digital Marketing:

• Drives loyalty and higher conversion rates

• Powered by AI and data analytics

Examples:

• Netflix’s recommended shows

• Nike’s customized shoes on their app (Nike By You)

6. Communication: Two-way, real-time interactions between brands and consumers.

Role in Digital Marketing:

• Shifts from broadcasting to dialogue

• Enables feedback, support, and engagement

Examples:

• Instagram comments, Twitter DMs, WhatsApp Business, chatbots

7. Conversion: Turning visitors into leads, subscribers, or paying customers.

Role in Digital Marketing:

• Ultimate goal of campaigns

• Requires effective CTAs, landing pages, and retargeting
Examples:

• Google Ads directing to high-converting landing pages

• Email sign-up leading to product discount and sale

The 7 Cs of Digital Marketing help businesses:

• Understand customer behaviour

• Deliver personalized, timely, and valuable interactions
• Drive engagement, loyalty, and conversion in a data-driven digital world

Affiliate Marketing- Affiliate marketing is a performance-based marketing strategy

where businesses reward affiliates (partners, influencers, or websites) for generating
sales, leads, or traffic through their referral links.

Key Features:

• Pay-per-sale (PPS): Affiliates earn a commission only when a sale is made.

• Pay-per-click (PPC): Commission based on the number of clicks generated.
• Pay-per-lead (PPL): Earnings when affiliates generate leads (sign-ups,
inquiries).

How It Works:

1. A business (merchant) partners with an affiliate (blogger, influencer, or

website).
2. Affiliate promotes the product using a unique referral link.
3. Customer purchases via that link.
4. Affiliate earns a commission.

Examples:

• Amazon Associates Program: Affiliates earn commissions by promoting

Amazon products on blogs or YouTube.
• Flipkart Affiliate Program: Bloggers and YouTubers promote Flipkart links
for a commission.
• MakeMyTrip & Booking.com: Travel bloggers promote hotel booking links
and earn a share.
In the Digital World:

• Affiliate marketing thrives due to e-commerce growth, influencer culture,

and content marketing.
• Social media influencers, bloggers, and YouTubers drive sales via referral
codes and trackable links.

Neuromarketing- Neuromarketing applies neuroscience and psychology to marketing

by studying how consumers’ brains respond to branding, ads, packaging, and content. It
measures emotional and subconscious reactions to predict consumer behaviour.

Tools Used:

• Eye Tracking: Tracks where users look in an ad or webpage.

• Facial Coding: Measures emotions via facial expressions.
• EEG (Electroencephalogram): Monitors brain activity to see engagement.
• Biometric Analysis: Measures heart rate, sweat levels (arousal to stimuli).

Examples:

• Coca-Cola vs. Pepsi Test: Brain scans showed people preferred Coke when
they saw the brand, not just by taste – proving emotional branding works.
• Frito-Lay Packaging Study: Changed shiny bags to matte ones with images of
fresh ingredients after EEG scans showed negative responses to shiny packs.
• Netflix Thumbnails: Uses AI + A/B testing to display images most likely to
grab users' attention.

In the Digital World:

• Websites and app layouts are tested for color psychology, CTA button
placement, and ad formats to maximize clicks.
• Emotional ads on YouTube and Instagram are designed after understanding
brain triggers (e.g., humor, fear, nostalgia).
Affiliate Marketing vs. Neuromarketing in the Digital World

Feature Affiliate Marketing Neuromarketing

Focus Driving sales via Understanding subconscious

partners/influencers buying triggers

Approach Referral-based Psychological & brain-based

Tools Referral links, discount codes, social Eye tracking, EEG, AI-based
media analytics

Example Amazon affiliate links by bloggers Netflix testing thumbnails for

engagement

Therefore, Brands can use neuromarketing insights to create ads and offers that appeal
emotionally and then distribute them via affiliate networks to maximize reach.

Examples:

• Affiliate Marketing: A YouTuber reviewing smartphones includes Amazon links

to earn commission.
• Neuromarketing: Netflix analysing which image of a show attracts more clicks.