How the Internet has Changed the 4 Ps of Marketing

The 4 P’s are  a big part of marketing and have not lost their luster  as a guide in the online world.  The basic principles of Product, Price, Place and Promotion fits as easily in the virtual world as it does in print media.  The changes have been subtle but profound as marketing experts went through a transition from thinking about physical space to virtual space.

On the Internet time and space no longer have same meaning as in the physical world. Products can be sent across the world, the business borders between nations are reduced, and the world is more integrated. Marketing changes to meet those new demands.

Product: There is no substitute for a solid product.  In the online world how that product is displayed and described can have a large impact on customers abilities to understand it.  Using an easy to understand description and pictures can make a big difference in helping customers visualize how the product will help them.

Price:  The price of products is more competitive online due to easy comparisons at the click of a mouse. Physical locations have the ability to create price differentials but online products are compared instantly. Shipping costs are no longer a major expense with services like Amazon Prime.

Place: Even though the office may have a physical place the webpage has no place in particular. This means that someone can access the information and purchase products from almost anyplace on the globe. Where the business ranks on search engines will determine who and how many people frequent the site.

Promotion: In the online world promotion is about finding ways to draw in and connect to customers. Social media marketing, content creation, and pay-per-click ads are common methods. Businesses either purchase displays or create organic traffic through consumer comment and interest.

Beautiful Beaches Raise San Diego’s Digital Profile as a Vacation Destination

San Diego Beaches are some of the most beautiful in the country. According to Trip Advisor the beaches of La Jolla, Coronado and Carlsbad made their way into the nation’s top 25 (McVicker, 2014). As a local attraction beaches are a clear draw for people and a way people envision San Diego. The right kind of images can raise the status of an area.

If you doubt the brand of San Diego as associated with sunny beaches go ahead and ask someone from any place in the country what the first thing they think of when the city is mentioned. Most likely they will say something about the weather, ocean, beaches, restaurants and military. San Diego is seen as a destination place for vacation and fun.

Having positive reviews of San Diego in the news, vacation sites, and in general on cybersphere helps to raise the status of the area. The more times it is mentioned in various information channels and media the higher the association of the image in people’s minds. This can help the area become a greater destination place that reaps the financial rewards.

Consider how people find information today for trips and vacations. They search online using key terms such as “best U.S. vacation places”, “vacation places with beaches”, etc… The frequency of terms used to describe the city, or any city, will impact the which localities will be recalled for people to consider in their choices.

Trip Adviser is one popular site that impacts the amount of people who will eventually visit the area and spend their money. Like the marketing of any company the more people who see positive information about the city the more likely they will choose to vacation here.  The money people spend is converted to profits, wages, taxes, and investments.

Beaches may not seem like much but they are a major draw for vacationers. Other factors that attract people are the types of jobs in the area, the recreational activities, the social life, and the type of city governance. When people are deciding where to visit and spend they will naturally gravitate where their interests lay. Where and how they find that information is becoming increasingly digitized.

McVicker, L. (Feb 18, 2014). 3 San Diego Beaches Ranked in Top 25 in US. http://www.nbcsandiego.com/news/local/3-San-Diego-Beaches-Ranked-in-Top-25-in-US-292477631.html#ixzz3UrohZTHj

Mining Marketing Information from Web Conversations

Marketing in the era of the World Wide Web is still a growing field. Many great ideas came, worked for a while, declined in value, and disappeared. New technologies are always developing that provide additional opportunity and value in creating stronger methods of developing and marketing new products through understanding web conversation.

Web conversation is something we see everyday but don't really notice. It is everything people put on the web when they discuss products, needs, and other opinions about ideas and concepts. It is a type of user generated content that stays on the web and is good for analysis. A study by Tirunillai and Tellis (2014) show that user generated content is ripe for market analysis.

Consider the idea that you desire to understand what people are thinking about a particular product and its features. Popular products and features often develop forums that are used by interested members to analyze and discuss their ideas and opinions as they relate to that product. By reviewing the material it is possible to gain greater insight and value.

The problem is that it is time consuming to try and follow online customer chatter. Certainly it is better than nothing but it isn't the whole solution. By using analytical tools it is possible gather a wider array of information and use that information to understand products and services better. Scanning the web for a better sample of customer preferences is extremely helpful in decision making.

The process works a little like this.Using proper software and algorithms it is possible to calculate and analyze the types of works being used to describe products. If done over a longer period of time it is also possible to create trends that can be used in determining new product cycles, features, and overall brand exposure. The process is beneficial for those seeking to understand consumer sentiment.

New technology brings new opportunities for companies to develop higher levels of analysis. Brand image is the total collective perception of the product/service in public. In this case, consumer generate content acts as a type of speech while the analytical software seeks to break apart and understand the overall conversational trend. It is like listening to thousands of people at once to gain insight for future product and marketing development.

Tirunillai, S. & Tellis, G. (2014). Mining marketing meaning from online chatter: strategic brand analysis of big data using latent dirichlet allocation. Journal of Marketing Research, 51 (4).

Using Search Engine Behavior in Marketing Campaigns

Companies regularly seek out opportunities to improve their marketing campaigns to encourage higher levels of return from improved purchase rates. A paper by Ye, et. al (2014) discusses how companies use a number of metrics but often fail to incorporate search engine information into their marketing campaigns. By understanding how consumer interest leads to search behavior and eventual purchase companies can better design their marketing campaigns for greater effectiveness. 

Sales do not happen in a vacuum and often rely on pre-existing interest among consumers. Search engines and sites like Google Trends, Adwords, and others track search behavior of consumers. With 80%+ of consumers using the search engine to find information it can be used to help to develop stronger marketing processes that lead to higher sales. 

The search engine becomes a gateway to purchasing behavior based upon the cognitive processes of the consumer and the word choices he or she uses to find information. What is of interest to people will lead to improved sales. You may look at various categories on Google Trends to see general interest categories and their ranking. 

In today’s world, the search engine is an integral part of our lives and can influence how we understand the world around us. Information from products and services found in our environment can be better pinpointed online. Companies can use this search information to better develop stronger marketing programs that lead to higher percentages of conversion. 

Traditional marketing statistics often ignore pre-trending search information that occurs before purchases are made. They ignore these statistics because it can be difficult to understand and incorporate into data metrics. However, it is these general search trends that eventually lead to page visits and purchases. 

The authors bring forward a solid point that understanding search behavior and trends will have an impact of eventual sales as consumer interest converts to purchasing behavior. Since a large section of society uses the Internet on a regular basis it is possible to use some of that trending information to determine which products are going to sell well and which ones are not. The development of marketing programs should factor in popularity on search engines. 

Ye, et. al. (2014). Decomposing the impact of advertising: augmenting sales with online search data. Journal of Marketing Research, 51 (3).

Improving Multi-Channel Outcomes in Online Marketing

Companies don’t always exist exclusively in the real or virtual world and neither should their marketing campaigns. Some consumers prefer buying products through physical channels while others prefer online channels. Companies find themselves managing the complexity of both broad channels to improve sales. These sales may not be based in a single marketing channel and may be more associated with the use of multiple marketing channels working together.

An article in the Journal of Marketing Research offers greater insight into cross-channel effects on traditional, online display and paid search advertising. They found that a single marketing channel cannot account for the total purchase rate of products/services (Dinner, Van Heerde, & Neslin, 2014).

Consumers may have a particular on or off line preference for purchasing but regularly use the Internet to search out and research their chosen items. The totality of both online and offline purchases is a combination of using different marketing channels and should be measured as such.

Think about how a consumer processes information. They see or hear about a product that relates to their self-image and develop an internal need for that product. If the product has value they may search out its benefits and detractors online. When a decision has been made they will either purchase online or from a ground store.

In today’s marketing world it is important not to evaluate marketing effectiveness in a silo. Even though the success of each marketing channel should be considered like the success of each purchasing channel it is still important to consider the total marketing effectiveness.

Different forms of exposure from multiple events create the total impression and experience for the consumer. Sometimes it may take multiple exposures from varying channels to grab their selective attention and finally make a decision to purchase.

Marketing is more than simply having customers see images and impressions on a webpage. There is a lot of competition out there in the cyberspace and the physical world that leads to advertising overload. A single marketing channel is unlikely to draw significant interest and improve market position.

To improve upon exposure companies will often use paid search positions. As consumers search out information on a product the paid search engine sites come up first. Usually it is the home company that reaches the top based search algorithms. In many cases there are multiple companies competing for the top position.

Paid search positions have less effect than originally thought. No one is sure why this is the case other than the click-thru rates decrease over time making the marketing method less effective. Mitigating factors could include the search engines, competition within specific industries, and the sensitization to these ads.

As the different channels work together it was found that they push potential customers into certain purchasing behaviors. Using multiple channels to direct customers to successful purchasing channels may be beneficial for raising the overall conversion rate. Channels then become augmentation and support for preferred channels that work the best.

Dinner, I., Van Heerde, H. & Neslin, S. (2014). Driving online and offline sales: the cross-channel effects of traditional, online display, and paid search advertising. Journal of Marketing Research, 51 (5).

E-Marketing Effectiveness and Small Business Management

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Small business owners sometimes wonder whether e-marketing can have a significant impact on their sales. Business is about positive return on activities and e-marketing is one tool some small businesses don’t yet understand.  A study by Eid & El-Gohary (2013) discusses how there is still a lack of systematic empirical evidence regarding online marketing but by analyzing budgets, tools, pre-sales activities, and after-sales activities, performance and effectiveness of marketing in 114 small businesses they can get a better perspective of e-marketing activities. 

Small business maintain similar characteristics that puts them within the same broad category. Small business are independently owned, managed by the owners, financially connected to the owners, and most of the important decisions are made by the owners. The use of decision e-marketing is not that familiar among many small business owners and they will need a personal investment of time, effort and resources to make it work. 

When small businesses are successful in their e-marketing practices they can find an increase in profits, market share, brand equity and productivity. Their business moves to a higher level of customer attraction and retention that helps them grow their opportunities both personally and financially.  Marketing costs can be reduced for businesses that successfully find a mix that works for them. 

It was found that the EM budget, pre-sales marketing and after-sales marketing explain 71.4% of e-marketing performance 76.3% of marketing effectiveness. E-Marketing can have an impact on successful sales generation. There is a net positive result of marketing and sales returns in the virtual world. The use of specific skills didn’t seem to be as important as engaging in the overall process of online marketing. Companies that begin move, study, explore and implement online marketing campaigns regularly find their bottom lines improving. 

To people who have run their mom and pop shops for years advertising in their local newspapers, building displays, and attracting customers with sales the transition to online can be difficult. They need not give up what works in traditional approaches to enhance those messages with online components. It wouldn’t be recommended anyway. Marketing is about finding what works and seeing how the different methods of marketing mix together to create effectiveness. 

Eid, R. & El-Gohary, H. (2013). The impact of e-marketing use on small business enterprises’ marketing success. Service Industries Journal, 33 (1).