Have The Four Ps Of Marketing Become The 4Ps Of Digital Marketing?

Have The Four Ps Of Marketing Become The 4Ps Of Digital Marketing?
SHARE
THIS



the managing director of Accenture Interactive, Marek Rucinski, says the core of what marketing is about – product, place, promotion and price – remains as relevant as ever even as digital disruption changes the entire model itself.

It’s no secret that digital is forcing change at a faster pace than ever before – commercially, socially, politically, economically – and organisations need to adapt. One of the biggest areas to see disruption is within marketing, where strategies need to accommodate change.

Marek Rucinski - Accenture

Marketing is reinventing itself

As digital redefines marketing, close links with sales and branding functions remain. But digital is increasingly also the driving force behind customer service, user and customer experience, and large elements of IT, PR, product development and more.

This combination of shifting content, channels, customer expectations and technology is forcing a redefinition of the meaning of the four Ps of marketing. While smaller, newer, more agile businesses are often held up as poster children of this movement – such as Shoes of Prey, Sneaking Duck and Combatant Gentleman – the mantra has been that larger organisations are slow to adapt.

But in reality, organisations of all sizes are embracing these specific changes. Consider entertainment company Marvel, which now stretches far beyond film and print, leveraging the disruptive elements of digital and developing multiple marketing-led opportunities.

For example, its products are now available in digital format, from downloadable movies and comics through to customisable products, with a conscious effort to keep retailing at similar pricing no matter where it’s placed – be it Marvel’s own online store or via third-party retailers. There’s also a focus on how digital can support physical products. Case in point; Marvel’s augmented reality app that unlocks exclusive content when enabled against its comic book publications.

Using mobile, Marvel is supporting customer engagement in any place, at any time. Responsive design, apps, podcasts and digital downloads are all available, including the ability to access content without the need to be connected to an internet or phone network.

Digital content is also widely deployed for promotional means, via online video, free downloads (such as computer wallpapers), or through specific campaigns, such as Become Iron Man, the virtual reality showcase deployed in public locations around the world.

Product = Presentation

The success of Marvel’s digital campaigns offer evidence that customers increasingly want digital content and services delivered to them on their terms. Consequently, designing for consumers is not about just aesthetics, but also about human-centricity, which can often define success in the new digital paradigm.

Examples of businesses successfully using digital to shape and promote products around customer experience are readily available – such as publishers who are turning away from print and using digital to distribute content, or FMCG brands who use digital to enable product creation and campaign delivery.

We only need to look to the Cadbury Bring Back Wispa movement or Coca-Cola’s Share a Coke to see how companies are rethinking approaches to marketing products, but less-obvious industries are also reshaping their products around customer experience and presenting this activity via digital communications. For example, in the appliance sector, Fisher and Paykel innovate products around customer-led design principles and market this heavily in the digital space.

In this sense, the presentation of products being designed around customers is equally as important as the end product itself. Marketers need to factor in how to communicate customer-centricity rather than relying on a product or service to speak for itself.

Place = Presence

When thinking about the communication elements of marketing, “place” typically dictates where these should be directed. It can also reflect where customers are, but there is an obvious overlap between the two.

However, smartphones continue to challenge this, resulting in increasingly complex channel management for businesses. Mobile has changed customer expectations and now demands a 24-7, omnichannel approach, given the ubiquitous availability of content and commerce it presents.

This is especially prevalent in finance and retail, where businesses directly interact with customers. There’s further examples where mobile is enhancing the presence of organisations – from the Commonwealth Bank and Neiman Marcus’ customer-based utility apps, through to Subway’s location-based mobile vouchers and Heineken’s Scavenger Hunt Instagram competition.

Of all these instances, plus many others, the theme of focusing on establishing a relevant, non-intrusive presence is visible, resulting in impactful results for the brands involved.

Presence needs to have context and not just be about the medium of communication. Success anchors on ensuring an engaging interaction with customers at the moment that they most need it.

Promotion = Personalisation

Success is also built from ensuring marketing interactions are well planned and executed, but it’s no secret marketing’s broadcast-based messaging tactics are waning. This is due to a shift in consumer attitudes towards rejecting above the line advertising, combined with greater pressures on marketers to demonstrate results-driven activity.

Successful marketing now ensures customers receive personalised communications, but it’s important to achieve the right level of personalisation. The textbook definition of personalisation is to make or alter something, so as to meet individual needs, inclinations or specifications: Which in marketing context means ensuring relevance to customers.

This is not just about getting someone’s name right on an email or text message – it is enabling communications and content to be tailored for them; from age or location, through to interests or previous purchases.

Personalisation is fuelled by content, which increasingly needs to be engaging and creative, as well as adhering to the context of individual customers. For example, to sell winter tyres, BMW sent more than 1,000 customised MMS to customers, which recommended options based on their car models. The campaign reportedly saw outstanding success, with a 30 per cent conversion rate.

Equally, Persil in the UK  transformed thinking around laundry detergent by running its Be Mighty campaign, which allowed parents to personalise interactive stories for their children. It also yielded impressive results, including capturing more than 140,000 unique users.

Price = Premise

It needs to be remembered that good results are achieved through thorough planning and execution. The world of payment models, as seen through formats like freemium and micropayments, has led some companies to believe they must deliver the cheapest possible options to customers. As a result, communicating the value and quality of these products can become difficult.

But it is possible to move consumer mindsets beyond pricing, through the development of relationships and improved customer experience. Empowerment can often translate to a willingness to pay for goods and services – as seen when Radiohead infamously allowed fans to pay what they wanted for the download of an album. Although statistics vary, it’s generally agreed the exercise was a commercial success.

Beyond this, developing customer affinity is also important. In a digital context this cannot be underestimated, especially where social media is involved. Ikea China’s decision to allow shoppers to sleep on sofas and beds in-store has apparently had a positive effect on sales; WestJet’s Christmas real-time present-giving campaign reportedly increased sales by 80 per cent; Old Spice’s Your Man advertisements breathed life into an old brand and increased revenue. All of these were showcased and grown through social channels, focusing on brand principles and building relationships with customers.

Keeping marketing aligned to the 4Ps principles

The disruptive elements of digital have changed how marketers approach the 4Ps. Product, place, promotion and price are still important considerations, but they need to be taken into account in a digital context and clearly linked to quality creative and technology capabilities.

By recognising the shifts seen in these four areas, marketers will be able to successfully interact with customers in the digital sphere.

Ensuring a balance of the appropriate channels of communication for customers (presence) and tailoring these to create individual customer relevancy (personalisation) drives engagement and dialogue with customers.

This furthers the opportunities to showcase products or services through different digital means (presentation) and ultimately means that affinity can be developed over time (premise), which can result in achieving highly successful marketing activity. Execution of the four P’s is linked to the orchestration across the technology, creative and strategy.

 

Latest News

Women In Media Profile: Zeina Khodr
  • Media

Women In Media Profile: Zeina Khodr

When B&T was offered to interview a lady named “Zeina”, we initially thought it was the warrior princess herself.

by B&T Magazine

B&T Magazine
39th AWARD Awards Winners Announced
  • Media

39th AWARD Awards Winners Announced

The winners of the 39th annual AWARD Awards were announced tonight in a celebration of the most outstanding creative communications work in the Asia Pacific region. The theme for the night was “Count Yourself Lucky” and didn’t disappoint with a record number of golds being presented. Held at Carriageworks as part of the Semi Permanent […]

Q&A With Cannes Chairman Terry Savage
  • Advertising
  • Media

Q&A With Cannes Chairman Terry Savage

If you mistakenly thought this was an interview with Kojak's Telly Savalas, as it turns out, it's even better than that.

Optus To Phase Out Virgin Mobile Brand
  • Marketing

Optus To Phase Out Virgin Mobile Brand

Didn't much fancy that Telstra story above? Well, perhaps B&T could tempt you with this tasty Optus tickler instead.

by B&T Magazine

B&T Magazine
AKQA R&D Teams Up With Google For Semi Permanent 2018
  • Media

AKQA R&D Teams Up With Google For Semi Permanent 2018

AKQA R&D in collaboration with Google has developed a process called Somesthetic Transfer. It uses machine learning to take both the style and texture of an artwork and apply it to another image to be 3D printed with a UV printer. The works will be displayed at Semi Permanent 2018 in Sydney from Thursday 24 […]

WPP’s Health & Wellness To Unveil ‘How Design Can Save A Life” For Vivid
  • Marketing
  • Media

WPP’s Health & Wellness To Unveil ‘How Design Can Save A Life” For Vivid

Design students from Torrens University’s Billy Blue College of Design have partnered with WPP AUNZ’s Health & Wellness division to decode clinical data on ‘Medicinal Marijuana in the Treatment of Epilepsy’. Their creative solutions will be presented at a Vivid Ideas Exchange titled ‘Design can save your life: how can creativity improve comprehension of health data?’ […]

Diversity Case Study Series: The Royals
  • Advertising
  • Marketing
  • Media

Diversity Case Study Series: The Royals

If you read one diversity case study on B&T today, make it this one. Not that there's any others to choose from, really.

by B&T Magazine

B&T Magazine
Cricket Australia Finds New Major Sponsor
  • Marketing

Cricket Australia Finds New Major Sponsor

B&T was going to insert a homage to Sherbert's classic "Howzat" here before realising it was naff and showed our age.

by B&T Magazine

B&T Magazine
PHD Wins HSBC Global Media Account
  • Media

PHD Wins HSBC Global Media Account

ICYMI, PHD has FTW the HSBC business IRL. It's not so much a LOL or NSFW, but a TL;DR. Ahh, forget the whole thing.

InMoment Accelerates APAC Expansion With Key Acquisition
  • Media

InMoment Accelerates APAC Expansion With Key Acquisition

Customer experience (CX) intelligence platform, InMoment, has expanded into Australia and New Zealand with the acquisition of customer experience agency, brandXP and appointment of Claire Fastier as its APAC business head.

Marketers Need To Focus On Voice Search Right Now
  • Opinion

Marketers Need To Focus On Voice Search Right Now

In this opinion piece, Performics Australia performance content account director Steve Robinson (pictured below) dives into the hazy relationship between marketers and voice-activated technology. From settling family disputes, (“Hey Google, are fossil fuels really made from dinosaur bones?”) to running a household, (“OK Google, add toothpaste to my shopping list”), voice-activated systems are becoming more […]

Opinion

by B&T Magazine

B&T Magazine
SpotX Launches Online Resource Library For Publishers Seeking GDPR Guidance
  • Advertising
  • Media

SpotX Launches Online Resource Library For Publishers Seeking GDPR Guidance

Video advertising and monetisation platform SpotX has announced the launch of an online resource library for the European Union’s General Data Protection Regulation (GDPR). The library can be found on the company’s website and is part of a wider educational initiative by SpotX – which is headquartered in the US and has an office in […]

Daylight Agency Opens Government Division, Hires Legal & Political Expert
  • Marketing

Daylight Agency Opens Government Division, Hires Legal & Political Expert

Integrated communications firm Daylight Agency has cemented its presence in the government and political arena with the appointment of industry veteran David Begg. A practising solicitor for over 28 years, Begg (pictured above) will head up the agency’s new government division. He has extensive experience working with large commercial clients on high-profile regulatory and legal […]

Frost Design Unveils New Look For John Holland
  • Marketing

Frost Design Unveils New Look For John Holland

Frost Design has shown off its comprehensive rebrand of iconic Australian infrastructure and property business John Holland, based around the brand idea of ‘Transforming Lives’. John Holland CEO Joe Barr said Frost was the only branding business who understood that the impact of the rebrand was just as important internally as it would be externally, […]

Women In Media Profile: Jill Johnston
  • Media

Women In Media Profile: Jill Johnston

We've got an absolute cracking Women in Media profile today. Not to say it's approved by the Chiropractors' Association.

by B&T Magazine

B&T Magazine
First Lady Michelle Obama and President Barack Obama Dance Together at the Presidents Ball
  • Media

Netflix Secures Producer Deal With The Obamas

It seems former US president Barack Obama and former First Lady Michelle Obama aren’t quite done with the international spotlight just yet. The Obamas have officially signed a multiyear deal with Netflix, which will see the power couple producing films and series with the streaming giant. According to Netflix, “The Obamas will produce a diverse […]

How To Spot A Trend Versus A Fad
  • Opinion

How To Spot A Trend Versus A Fad

One need only view our editor's hot pink leg warmers today to realise he's neither fad nor trend.

Opinion

by B&T Magazine

B&T Magazine
Why Engagement Is The New Rule Of Content
  • Opinion

Why Engagement Is The New Rule Of Content

And why is B&T running a photo of an engaged couple for this content engagement article? It was either that or a carrot.

Opinion

by B&T Magazine

B&T Magazine
Fairfax Media Recruits 20 Trainee Journalists Across All Its Titles
  • Media

Fairfax Media Recruits 20 Trainee Journalists Across All Its Titles

Fairfax Media has today announced the recruitment of 20 trainee journalists to join the newsrooms of The Sydney Morning Herald, The Age, The Canberra Times, The Australian Financial Review, Brisbane Times and WAtoday. This represents one of Metro’s largest trainee intakes in years and underlines the commitment of the mastheads to fostering a new generation […]

Sydney Australia - November 7, 2011. An extreme close up of an American express card issued by the Australian bank Westpac.
  • Media

AMEX Launches Global Media Review

Are there not enough hours in the day? Are you cheek-by-jowl with your co-workers? Well, hopefully you won't win this.

Sydney Water & Republic of Everyone Create Vinyl Records Made Of Recycled Marine Plastic
  • Campaigns
  • Marketing

Sydney Water & Republic of Everyone Create Vinyl Records Made Of Recycled Marine Plastic

Sydney Water has pioneered a way to create records from marine plastics and, in doing so, encourage more people to join the movement of local clean-up groups rolling up their sleeves every weekend to clean plastics, litter and other pollutants from the city’s beaches and waterways. Plastics are collected by volunteers, then cut in pieces […]

Credit Card Compare Names Its First Head Of Marketing
  • Marketing

Credit Card Compare Names Its First Head Of Marketing

Aussie credit card comparison site Credit Card Compare has announced the appointment of Caroline Raffan as its inaugural head of marketing. Raffan (pictured above) has over 10 years’ experience in brand strategy, campaign development, digital marketing, events, public relations, content creation, market research, advertising, stakeholder management, social media marketing, and project management. She joins Credit […]

Why Programmatic Needs To Become A Branding Machine
  • Advertising
  • Marketing
  • Opinion
  • Technology

Why Programmatic Needs To Become A Branding Machine

In this opinion piece, Phil Murrell (pictured below), country manager for Australia and New Zealand at Sizmek, argues that programmatic ad spend needs to move up the branding funnel. When I started in digital advertising way back in 2004, we got our media insertion orders via the fax machine. We relied on that machine to […]

Opinion

by B&T Magazine

B&T Magazine