A1 Digital Marketing to Extend the Marketing Mix
Digital marketing can enhance the marketing mix of a product or service and offers a wide range of additional promotional activities to use as part of the promotional mix. This may not completely replace the traditional marketing mix as there are still many non digital methods to reach customers but due to the reach and the metrics provided by digital marketing, it is beneficial for businesses to integrate digital marketing into their marketing mix.
Product - Digital marketing offers a range of metrics that marketers can use to inform their product development. Sales data from the website can be easily accessed to analyse demand, traffic to a website and areas of the website which are getting the most views can provide indicators of consumer product preference and online reviews allow for fast and easy feedback and can therefore inform developments in the USP of goods and services.
Price - Consumers now have very fast and easy access to information on pricing from many rival firms providing the same or similar products. Price comparison websites make this even easier for a range of products. Digital marketing has therefore increased the pressure on firms to be more competitive in their pricing.
Promotion - Digital marketing has opened up a wider range of promotional methods that can be added to a promotional mix. Some businesses may decide to only promote their products online. This may include social media marketing, email campaigns, pop ups and website adverts. Digital metrics are becoming more sophisticated which is allowing businesses to target their marketing more directly to market segments.
Place - Digital marketing has led to a rise in online sales which has provided a point of sale that reaches a much wider target audience. This requires businesses to gain improved understanding of distribution routes and postage costs. When selling to overseas customers, businesses may need to gain a better understanding of import laws in other countries.
