CHAPTER 2

Remix

eMarketing eXcellence by Dave Chaffey and PR

Smith
Amarketer is like a chef in a kitchen . . . a
mixer of ingredients

Bartels (1963)

eMarketing eXcellence by Dave Chaffey and PR Smith

Introduction To Remix
The Marketing Mix!
Which mix is the most appropriate?
Products become services
The overall balance of the marketing mix is strategic
Details of the mix are tactical

For Online Success: The basic business is fit for purpose and
that the appropriate technology is in place along with the 3Ms:
Men (and women the human resource)
Money (budgets)
Minutes (time)

eMarketing eXcellence by Dave Chaffey and PR Smith

eMarketing eXcellence by Dave Chaffey and PR Smith
An Overview
Canadian Jerome McCarthy (1960) coined the term the 4Ps:
Product
Price
Place
Promotion

Booms and Bitner (1981) developed the 7Ps known as the

service mix .
They considered the extra Ps :

People
Processes
Physical evidence

eMarketing eXcellence by Dave Chaffey and PR Smith

EXTENDING THE MIX
Rothery (2008) developed the 4Es framework

Experience means a product is an experience

(including online experience)

Every place means place or distribution should be

everywhere the customer wants it

Exchange means price (as money or credit is

exchanged for product or services)

Evangelism promotion becomes evangelism.

eMarketing eXcellence by Dave Chaffey and PR Smith

MIXING THE MIX

Regardless of the approach to the mix, the

same principle applies: Stick Close To
Customers !

eMarketing eXcellence by Dave Chaffey and PR Smith

eMarketing eXcellence by Dave Chaffey and PR Smith
eMarketing eXcellence by Dave Chaffey and PR Smith
The Marketing Mix?
Product

Price

Place

Promotion

People

Physical evidence

Processes

Plus a new P Partnerships.

eMarketing eXcellence by Dave Chaffey and PR Smith

Product
What benefits do you deliver to your customers?

Can they be delivered online?

What other benefits might your customers like?

Can these benefits be delivered online?

What is your business? Can it be delivered online?

Ghosh (1998) suggested that companies should consider how

to modify product and add digital value.

eMarketing eXcellence by Dave Chaffey and PR Smith

Rich Internet Application (RIA)

eMarketing eXcellence by Dave Chaffey and PR Smith

Product

ROPO purchasing (Research Online Purchase Offline).

Prosumer : The proactive consumer who participates in the

design of products or services

Communities of customers can be tapped!

eMarketing eXcellence by Dave Chaffey and PR Smith

Open Innovation!

eMarketing eXcellence by Dave Chaffey and PR Smith

THE EXTENDED PRODUCT
Quality and Credibility are inextricably linked

Endorsements
Awards
Testimonies
Customer lists and numbers
Customer comments
Warranties
Guarantees
Money-back offers
White papers
Staff photographs
Social proof such as the number of subscribers, circlers, fans.

eMarketing eXcellence by Dave Chaffey and PR Smith

ONLINE VALUE PROPOSITION
(OVP)
Auto Trader The biggest and best car site on the planet:

www.autotrader.com

Boosey & Hawkes A world of music : www.boosey.com

Flickr Share your photos. Watch the world : www.flickr.com

Kelkoo Compare. Buy. Save : www.kelkoo.com

YouTube Broadcast yourself : www.youtube.com

eMarketing eXcellence by Dave Chaffey and PR Smith

Product

Find the ideal product that you can deliver, can afford, are
good at, can protect and go for it

Play to your strengths and exploit your distinctive

competitive advantage by having a strong and clear OVP

eMarketing eXcellence by Dave Chaffey and PR Smith

Price

AOL used to pay ABC News for content. Now ABC pays AOL to
place its content on AOL pages.

eMarketing eXcellence by Dave Chaffey and PR Smith

NEW PRICING
APPROACHES
Pay Per View: A fee for a
Subscription: Offered for
single download or viewing
different periods at
session at a higher relative
different price points; e.g.
price than the subscription
3 months, 12 months etc.
service.

Ad-Supported Content:
Bundling: Different The publishers main
channels or content can be revenue source is through
grouped at a reduced price adverts on the site. E.g.
compared to Pay CPM display advertising ,
CPC using search ad
Per View. networks & Affiliate
revenues.

eMarketing eXcellence by Dave Chaffey and PR Smith

eMarketing eXcellence by Dave Chaffey and PR Smith
PRICE MONITORING

www.pricewatch.com
eMarketing eXcellence by Dave Chaffey and PR Smith
Price

The Internet is changing pricing for ever. Prices are under

pressure. Pricing structures and options are becoming more
complex

It is crucial to get the pricing right in the short, medium and

long term

eMarketing eXcellence by Dave Chaffey and PR Smith

Place

Esther Dyson (1999) says: You put coke machines in places

where you think people might want to drink a coke. On the

Internet you put Amazon buttons in places where there might

be people inclined to buy books.

eMarketing eXcellence by Dave Chaffey and PR Smith

Place
Proximity marketing and Location-based marketing bring
promotions to the customer at specific distribution points.

Foursquare and Facebook Places enable customers to reveal

their locations to friends and discover nearby Deals.

More and more large brands are turning to location based services to

find out more about and communicate with their customers and to offer

them deals and promotions for their loyalty (Gray, 2011).

eMarketing eXcellence by Dave Chaffey and PR Smith

eMarketing eXcellence by Dave Chaffey and PR Smith
New Distribution Models

Reintermediation:
Disintermediation:
The emergence of new Infomediation:
Removing the
types of middlemen Middlemen hold data or
middleman to deal
who are brokers such information to benefit
direct with customers
as Bizrate, which unites customers & suppliers.
e.g. Hewlett-Packard.
buyers with sellers.

Peer-to-peer
Channel Confluence:
services: Music
Distribution channels
swapping services such
start to offer the same
as Napster and
deal to the end
Gnutella eliminated
customer.
supplier & middlemen.

eMarketing eXcellence by Dave Chaffey and PR Smith

New Distribution Models

Group
Affiliation: Turns Purchasing :
customers into sales Facilitated by
people. Amazon. Groupon and Living
com prides its Deals. Millions of
400,000 affiliate people are alerted
partners to heavily
discounted offers

eMarketing eXcellence by Dave Chaffey and PR Smith

Place

Increase your representation and make it widely and readily

available to target customers

Marketers today need to think of multi-channels for

distribution to ensure they make their products and services
available to as many ideal customers as possible

eMarketing eXcellence by Dave Chaffey and PR Smith

Promotion
Online promotion is continuing to grow in importance and

gaining an increasing share of marketers budgets and

efforts.

It may be a text message that changes behavior

immediately.

Key words that attract more enquiries.

Contextual banner ads that change attitudes.

Viral marketing that makes people talk about a brand.

eMarketing eXcellence by Dave Chaffey and PR Smith

Promotion

eMarketing eXcellence by Dave Chaffey and PR Smith

GUIDELINES FOR EFFECTIVE
PROMOTION
Promotiona
l Mix

Integration
Resourcing &
Creativity

Globalizati
Interaction
on

eMarketing eXcellence by Dave Chaffey and PR Smith

Promotion

Take advantage of the characteristics of the new media

through promotion that is dynamic, carefully targeted, highly

relevant and helps to build an ongoing relationship based on

the permission and trust of the customer

eMarketing eXcellence by Dave Chaffey and PR Smith

People
As more products add online services to enhance their
offerings, people become more and more important.

They act as Ambassadors for your business.

IBM coined the phrase Social Business, which includes

almost all staff engaging in conversations.

Happy Staff = Happy Customers = Happy

Shareholders

eMarketing eXcellence by Dave Chaffey and PR Smith

People: Servicing
Customers
Auto-responders: Generate a response when a customer emails.

Email notification: Automatically generated by a companys

systems.

Call-back facility: Customers fill in their phone number on a form.

Real-time live chat: Assisted by a customer support operator in a

call center.

Frequently asked questions (FAQs): Customers can easily find (a)

the question and (b) a helpful answer.

eMarketing eXcellence by Dave Chaffey and PR Smith

People: Servicing
Customers
Ask and answer services: Customers help each other.

On-site search engines: Help customers to find what theyre

looking for.

Co-browsing: Customers screen can be viewed by the call-

center operator.

Virtual assistants: Help to guide the customer through a

maze of choices.

Customer reviewers and assistants: Recruit customers to

help shape their service for other customers.

Tailored customer landing pages: Variety of different

propositions.
eMarketing eXcellence by Dave Chaffey and PR Smith
People

People are the differentiating factor that has helped many

clicks and- mortar companies out-perform the virtual
companies

Recruitment, training and motivation of the staff are

required

eMarketing eXcellence by Dave Chaffey and PR Smith

Physical evidence
As services are intangible, customers look for reassurance
that the service is going to be alright.

The web site becomes a significant part of the physical

evidence on the internet.

Web sites should be designed in an uncluttered style with a

consistent look and feel.

eMarketing eXcellence by Dave Chaffey and PR Smith

Physical Evidence: Reassuring Nervous
Visitors
Guarantees

Refund policies

Privacy policies

Security icons

Awards

Customer endorsements

News clippings

Ethical policies

Community links

eMarketing eXcellence by Dave Chaffey and PR Smith

Why people come back to a site?

Ease of
High-
use
quality
(navigatio
content
n)

Quick Frequentl
download y updated

eMarketing eXcellence by Dave Chaffey and PR Smith

Physical evidence

Customers look for online cues and clues for reassurance.

Web sites can provide these in the form of high-quality site

design and reassurance through guarantees & refund

policies

eMarketing eXcellence by Dave Chaffey and PR Smith

Process

Process refers to the internal and sometimes external

processes, transactions and internal communications that

are required to run a business.

Excellent processes are where e-commerce ends and e-

business begins.

eMarketing eXcellence by Dave Chaffey and PR Smith

OPTIMIZING INTERNAL
PROCESSES

Customer wants to check availability: Does the site show

the number in stock and when next available if out of stock?

Product specification or price is changed: Is the change

seamlessly reflected in the web site and price lists or
catalogues?

Customer places order : Is the customer notified by email

that their order has been processed?

Product dispatched: Can the customer track the order if

required?

eMarketing eXcellence by Dave Chaffey and PR Smith

OPTIMIZING EXTERNAL
PROCESSES
Radically redesign supply and distribution chains.

Jack Welshs well-known internal slogan Destroy Your

Business.com. Reinvent the business process so that its

faster, lighter on resources and most importantly, makes

the customer happy!

eMarketing eXcellence by Dave Chaffey and PR Smith

Process

Good processes and systems can create competitive

advantage

There are lots of poor processes that kill sales and damage

the brand

eMarketing eXcellence by Dave Chaffey and PR Smith

An extra P
Partnerships

Marketing Marriages or Alliances.

Staff dedicated to partnership

marketing.

Clever partnerships are also

emerging.

eMarketing eXcellence by Dave Chaffey and PR Smith

An extra P
Partnerships

Ford Galaxy teamed up with Tesco and

AOL

MUtv partnered with Sky and Century

Radio

Blogger outreach program & Affiliate

Marketing

eMarketing eXcellence by Dave Chaffey and PR Smith

Partnerships

Partnerships need to be identified, recruited and

nurtured for success

We cannot do everything ourselves. Partnerships can

help enormously but they require skilled management

eMarketing eXcellence by Dave Chaffey and PR Smith