Are you an impulsive online shopper? Do you prefer to shop online rather than drive to a physical store? If you answered yes to both, me too and COVID19 might be to blame but I’m also extremely lazy. A lot of businesses have moved online in the recent months and with the rise of technology, it’s now or never. Below is the 7 p’s marketing mix and details of how the internet and digital technologies are impacting the retail industry.
Product– This element focuses on the needs of customers and then developing products to meet those needs. There are two parts to a product, the core (benefit) and the extended (additional features) which includes design, quality, brand, packaging as well as after purchase benefits such as warranties and delivery. The internet has allowed the customisation and personalisation of products. For example, the sneaker brand Converse, allows online shoppers to tailor shoes to their individual needs. This includes choosing colours, material, laces etc. and then you can make the product personal by adding your name.
Image sourced from: https://www.converse.com.au
Promotion – The most affected element of marketing mix as online promotion can now be “tracked, measured and targeted” (Stokes, 2012), providing marketers with a better understanding of the market and an insight into consumer behaviour. Marketers can target audiences more specifically and direct communication efforts. Promotional tools influenced by the internet include: advertising (PPC and display ads), sales promotion (discounts, and loyalty programs), personal selling (chat box’s and affiliate marketing), public relations (blogs and social media), direct marketing (email and SMS).
Price $$$ – Thanks to the internet, almost everything is accessible, including competitor information of other retail businesses. Transparency amongst businesses means consumers can easily compare prices, hence the use of competitive pricing strategies. This benefits consumers as companies are encouraged to lower prices, offer discounts and bundle in order to seem more appealing within market. (Nezamabad, 2011). Payment methods have also been affected, including the introduction of PayPal and After Pay, making paying more convenient.
Place – The internet removes geographical barriers providing customers with more options, however this means increased competition for businesses as smaller business can easily enter the market (InternetMarketing6379, 2018). The place of purchase has shifted online with new channel structures emerging along with the need for different distribution channels. The internet has allowed for distribution to become much faster, flexible and convenient.
People – Involves interactions between employees, marketers and consumers. The only change the internet has had on people is the way they interact and a few roles are not necessary due to the shift online. The internet allows businesses to understand their customer better including demographics and geographical data. Whereas, if a customer were to enter a physical store, no one would know anything about them. Customer care is improved and more helpful through the use of FAQ’s, emailing, online chat box’s, call options etc (Juneja, 2015).
Process – Involves the digital process of a customer making a purchase online from a supplier and the various steps involved in order for that product to reach the consumer. With the help of the internet, tracking products has been make easier and enables customers and the businesses to locate shipping and estimate delivery.
Physical evidence – Websites and social media platforms have become the new store fronts for businesses. The online customer experience is important as it lacks crucial components of the in-store buying experience such as touch, smell, and talking to real store employees face-to-face (Talentedge, 2015). Product packaging has also become more unique and differentiated. A lot of brands are also switching to environmentally friendly options to satisfy customers.
An image of The Iconic's online store front and their 100% recyclable packaging- Sourced from https://www.theiconic.com.au
Ultimately, the retail industry has massively been impacted since the introduction of the internet and the continuous developments of digital technologies. Though, there are clearly a lot of benefits for both businesses and consumers. It is just another thing we will have to adapt to in our ever changing environments whilst living with technology.
References:
InternetMarketing6379 2018, ‘How does the internet impact the marketing mix?’, WordPress. <https://internetmarketing6379.wordpress.com/2018/09/24/how-does-the-internet-impact-the-marketing-mix/>
Juneja, P 2015, ‘The Internet and the Marketing Mix’, Management Study Guide. <https://www.managementstudyguide.com/internet-and-the-marketing-mix.htm>
Nezamabad, M 2011, ‘The Impact and Benefits of Internet on Marketing Mix’, Australian Journal of Basic and Applied Sciences, 5(9): 1784-1789. < http://ajbasweb.com/old/ajbas/2011/September-2011/1784-1789.pdf>
Stokes, R, 2012, ‘The Internet and the Marketing Mix’, eMarketing: The Essential Guide to Online Marketing, Vol. 1.0, chp 19.2. < https://saylordotorg.github.io/text_emarketing-the-essential-guide-to-online-marketing/s22-02-the-internet-and-the-marketing.html>
Talentedge Admin 2015, 'The 4P’s in a Digital World: How the Internet has changed Marketing Practices, Forever!’, Talentedge. <https://talentedge.com/blog/mica-post-graduate-certification-in-marketing-and-brand-management/>
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