How Technology is Saving the Day on the 4P’s of Marketing
DEC 11 2021 | 16:10 PM | 10 Mins Read
Technology is making the “4 Ps” of marketing more pronounced and memorable.
The “4 P’s” of marketing – product, place, promotion, and price. It’s the classic approach ingrained in every marketing strategist’s repertoire in Marketing 101, long before digital technology led the masses through Black Friday from the comfort of a recliner.
The old-fashioned tactics that remain at the core of today’s marketing campaigns have built some of the most iconic brands through the history of commerce. And they don’t have to be embedded in Twitter, Snapchat, Instagram, or Facebook by modern marketers to be effective. But technology is making them more pronounced and memorable.
A strategy to guard against surprises
In the apartment industry, each P has a unique purpose rolled within a portfolio’s marketing strategy. Before property management technology, they sometimes got a little lost in the fray, however. Back in the day, associates kicked back in their Naugahyde chairs sporting a big grin when a community was filled to the brim with residents. Little did they anticipate what was around the corner.
An onslaught of renewals caught management by surprise and suddenly the property had lost 10 percent of its occupancy. If only the staff had been alerted.
Today’s technology is protecting the “4 Ps” with some internal safeguarding. Some of the most advanced tools provide operators not only a transparency in real-time occupancy but what lies ahead that could spell disaster if gone unnoticed.
Building a connection through brand execution
Brand execution has become “supercritical,” he adds, through web presence, expansive content, and the understanding of who’s searching content to build the connection to the property. The connection of classic marketing and data generated through technology is providing a layer of protection in property management today.
Digital Era 4Ps
here is a revolutionary change in today’s retail landscape. Industry thought leaders have expressed varied points of view on the future of Shopping. As researchers and strategic advisors to a variety of brands and businesses, Decision Insight is highly vested in understanding the changing Shopper and providing guidance to optimize brands for the future – especially in light of eCommerce, mobile devices, and the ever-evolving impact of new technology.
We examine the building blocks of marketing – the “Four Ps” – and their relevancy in the Digital Age. Is the overall concept of the Four Ps still relevant? Perhaps it’s the definition of each of the Ps that needs expansion. In fact, it’s quite possible that the Four Ps may be more relevant today than when they were when first conceived – nearly six decades ago.
How do basic shopper and category strategies translate to the eCommerce environment?
Consider the 4Ps of marketing and their relevancy in the online world.
Decision Insight is highly vested in understanding the changing shopper, the impact of digital on retail – and providing guidance to optimize for future opportunities. Strategic initiatives that have been effective in brick-and-mortar can be effective online, but they must be reimagined to work in a new, digital retail environment.
Thoroughly understanding the significance of Place, both Brick & Mortar and Online, and how the shopper interacts with them provides significant advantages – and can lead to more successful digital strategies. As eCommerce evolves, so should research around Place and today’s shopper.
In the traditional retail store, the focus is on shelf space and facings. With no physical limitations (or advantages) in the online channel, marketing focus shifts to arrangement, assortment, and taxonomy. How do you maximize your presence in an endlessly scrolling product grid? There are many questions: What are the new merchandising levers to drive cross-selling, occasion/solution offers, featured items, and impulse purchases? DI has tested exciting new online strategies to build customers’ baskets and influence impulse purchasing, to understand what wins before going to market.
How pricing is presented online is often a key factor in converting sales. From bundles and SKU breadth to complementary product adjacencies, premium placement in search results, auto-fill subscriptions, and free shipping – there is much shopper confusion online and true price is often obscured. Consider just two factors – unique to eCommerce – that may wildly affect shopping behavior: “Free Shipping” and “The more you spend, the more you save.” Without physical limitations, complimentary bundles and product adjacencies that are difficult in brick and mortar (consider occasion-based destinations such as Breakfast, Super Bowl, Back to School) are reasonably simple in eCommerce. But what bundles at what prices are optimal? The options are nearly unlimited.
With Digital.IQ from Decision Insight, multiple variables may be tested simultaneously to predict the best mix of product bundles, featured items, adjacencies, and discounts. This allows the retailer and manufacturer to optimize sales, improve the shopper experience, and increase bottom-line sales results.
Most product categories are heavily affected by some form of online engagement. Shoppers compare brands, features, pricing, and value online. For a new product to be successful on the eCommerce path to purchase, understanding and optimizing online promotions is a must!
Consider a beverage manufacturer developing and launching a new energy drink online, one fortified with vitamins, low on sugar, and with a great taste. What online promotion strategy would best spark a new product trial — at the least cost? Would one online promotional strategy work better for one shopper segment than another? Offers can be tailored to shopper need, usage occasion, the shopper’s current basket, or past purchases.
Despite concerns in the industry of the inability to meaningfully influence impulse buying online, there are, in fact, many opportunities to drive unplanned purchases. DI has tested multiple alternative strategies to build customers’ baskets and influence impulse purchases online with much success – helping clients better understand what strategy wins before going to market.
First impressions are everything. On the shelf, the package is the introduction to the product. Online, the retail advantages of placement and context are gone: A product has only a moment to be noticed. The product image – often a single photo – must catch the shopper’s attention and drive either a click to purchase or a click to learn more. This single image is expected to clearly communicate the product’s most attractive attributes – from features and benefits to sizes and efficacy.
In online search results for Snack Bars, products are presented in various sizes and packages. An image of a single snack bar may represent a 6-pack or a 12-pack. It’s important that product images and product descriptions quickly convey the true size and form of the product. If not, the result may be loss of sales and shopper dissatisfaction.
At Decision Insight, we’ve been testing and optimizing the Four Ps for over 30 years. Our virtual research solutions deliver confidence in product development, packaging, POS and merchandising, while determining how products should be priced within context to SKUs, package size, bundles, and adjacencies — for brick & mortar and online channels.
Marketing in the 21st Century: How Does Digital Media Affect the Marketing Mix?
A successful product launch is the result of months of work. First, there is product development, an idea sparking a design, and then later the final product or service, but that’s only the beginning. Once the product is ready, it takes a skilled marketing team to understand the product’s market, potential customers, and how to reach them. The team also must consider the company’s advertising budget and determine the best way to deploy videos, static advertisements, and other product placement to maximize exposure and returns.
Digital media has changed the way that marketing professionals perform their work. Traditional marketing methods are disappearing, replaced by all sorts of new revenue stream opportunities, which present their own challenges. Continue reading to learn more about how digital media affects the marketing mix and the emerging professional opportunities in the field.
Digital media has had the following direct impacts on the marketing mix:
- Advertising recognition and avoidance: Many digital streams have advertisement blockers or allow users to opt out of seeing certain ads. Companies must develop methods to advertise despite these obstacles.
- Customer service: Digital media, especially social media, allows customers to air their complaints to hundreds or thousands of friends or followers, as well as interact directly with brand representatives on many channels. Marketing agents consider how their social media specialists handle customer service requests, because bad experiences can significantly impact the success of a product, service, or brand.
- Influencers: Advertisers make use of social media influencers, people with thousands or millions of followers on social media channels such as YouTube, Twitter, or Instagram. Paying an influencer to recommend or showcase a brand can create immediate direct sales in a target market.
- Barrier to entry: The ubiquity of digital and social media has also lowered the barrier to entry in marketing. When advertising was only on television or billboards, it wasn’t cheap to market a product. Now, companies can place advertisements on social media channels and in the results of popular search engines at relatively little cost.
Marketing is much more than communication. Whilst the ‘promotion’ P is important, so are the other 3 Ps and marketers must consider all four of the marketing mix as part of their strategies and plans.
Everything starts with the product, which must connect with your target audience and meet their needs and desires. You must then have an effective and innovative distribution strategy to ensure that consumers are not only thinking about your product but can easily get hold of it (whether physically or online). You then need to put in place a pricing strategy that fits with the image and positioning of your product.
If each of these Ps is in place, promotion can then be used to tie up all the benefits as part of a clear, distinct message.