CHAPTER 4

The Impact of Digital Media and

Technology on the Marketing Mix
Introduction
Introduction
The elements of the marketing mix
1. Product
 1. Product

Internet-related product decisions can usefully divided into decision

affecting core product and extended product.
 1. Product

• The main implications for migrating a brand online include:

1. Options for varying the core product
 Options for varying the core product

• However, Internet also introduces 2 options of selling products

2. Options for offering digital products
3. Options for changing the extended
product
Example
4. Conducting Research Online
Example
5. Speed of new product development
6. Speed of new product diffusion
 Branding in a digital environment

• Branding is important online and offline as it helps customers

differentiate between products and services from different
manufacturers and producers.
• A brand is much more than the name or logo associated with a
product.
• However, in Internet market, loyalty is decreased because it
encourages consumers to trial other brands after researching
online.
• Of course, the likelihood of a consumer purchasing will depend
upon their knowledge of the retailer brand or product.
 Example of Branding
Nestle Breakfast Cereal Ice Cream Food
Success factor for brand sites
2. Price
Implication of the Internet for the price
 1. Increased price transparency

• There are 2 contradictory effects of the Internet on price that

are related to price transparency.
 1. Increased price transparency

• E-commerce companies need to review their strategy towards

the impact of aggregators which facilitate price comparison.
• One strategy for companies in the face of increased price
transparency is to highlight the other features – such as the
quality of the retail experience.
2. Downward pressure on price
 3. New pricing approaches (including
auction)

•
4.Alternative pricing structure or policies
 3. Place

• Place variables of marketing mix refers to how the

product is distributed to customers.
• In online context, products or services is distributed
through navigating from one site to another.
• E.g. retailer of mobile phone sell and distribute its
products in the company’s website and third party
website.
Implication of the Internet for the place
 1. Place of purchase

• Example of places for virtual

marketplace:
• There is no physical
limitation on Place of purchase – Buyer –oriented
fulfillment
Sites – www.lazada.com.my
• Internet is a global
virtual environment
that crosses
geographical
boundaries.
 2. New channel structure

• When considering channel

structures, it is important
to remember that there
may be implications for
the physical distributions
channel
• E.g. grocery retailers have
to identify the best
strategy for picking
customers’ good prior to
home delivery
• The main types of
phenomena that
companies need to
develop strategies are:
1.Disintermediation
2. Reintermediation
3. countermediation
3. Channel conflicts
 3. Channel conflicts

• To assess channel conflict, there are different form of channel

the Internet can take:
4. Virtual organisations
4. Virtual organisations
 4. Promotion

•
Implication of the Internet for the promotion
 4. Promotion

• The main elements of the promotional mix:

 4. Promotion

• The main elements of the promotional mix:

 4. Promotion

• The main elements of the promotional mix:

END OF CHAPTER 4