The marketing mix is a term to describe the multi-faceted approach to a complete and effective marketing plan. Traditionally, this plan included the four Ps of marketing: price, product, promotion, and place. But the exact makeup of a marketing mix has undergone various changes in response to new technologies and ways of thinking. Additions to the four Ps include physical evidence, people, process, and even politics.
Component
Description
Definition
The Marketing Mix, often referred to as the 4Ps, is a strategic framework used by businesses to plan and execute their marketing strategies. It involves the consideration and coordination of four key elements: Product, Price, Place, and Promotion. These elements are adjusted and aligned to meet the needs of a target market and achieve marketing objectives.
Development
The concept of the Marketing Mix was first introduced by marketer Neil Borden in 1949. However, it was popularized and refined by E. Jerome McCarthy in his book “Basic Marketing: A Managerial Approach” in 1960. The 4Ps framework has since become a cornerstone of marketing theory and practice.
Key Concepts
– Product: Refers to the goods or services offered by a company. Product decisions include features, design, quality, branding, and packaging. – Price: Involves setting a price that reflects the product’s value, production costs, and market demand. Pricing strategies can range from premium to discount pricing. – Place: Focuses on distribution channels and how products reach consumers. Decisions include channel selection, logistics, and retail locations. – Promotion: Encompasses all marketing activities aimed at promoting and selling products. This includes advertising, sales promotions, public relations, and digital marketing.
Product
– Definition: The product element of the Marketing Mix refers to the goods or services that a company offers to meet the needs and wants of its target market. It encompasses both tangible and intangible aspects, such as features, quality, design, brand identity, and customer experience. – Process: Product decisions involve defining the product’s features, benefits, and specifications. It also includes branding, packaging, and positioning in the market. – Metrics: Metrics for the product component may include sales volume, market share, customer satisfaction, and product quality ratings. – Benefits: A well-defined product strategy can lead to increased customer satisfaction, loyalty, and market differentiation. – Drawbacks: Neglecting product development or failing to meet customer expectations can result in reduced market competitiveness. – Applications: The product component is crucial in industries ranging from consumer goods and technology to healthcare and entertainment.
Price
– Definition: The price element of the Marketing Mix pertains to how a company sets the monetary value for its products or services. Pricing decisions directly affect revenue generation and profit margins. – Process: Price decisions involve determining the initial price, pricing strategies (e.g., cost-plus, value-based, penetration pricing), discounts, and pricing models (e.g., subscription-based, freemium). – Metrics: Metrics include pricing elasticity, gross profit margin, break-even point, and average transaction value. – Benefits: Effective pricing can optimize revenue, attract target customers, and enhance brand perception. – Drawbacks: Poor pricing strategies can lead to lost sales, decreased profitability, or perceptions of overpricing or underdelivering. – Applications: Pricing is a critical consideration in retail, e-commerce, software licensing, and service industries.
Place
– Definition: The place component of the Marketing Mix involves decisions related to the distribution and availability of a product or service. It focuses on making products accessible to the target market. – Process: Place decisions encompass channel selection (e.g., direct, retail, e-commerce), logistics, inventory management, warehousing, and supply chain optimization. – Metrics: Metrics for place include distribution efficiency, lead times, inventory turnover, and channel performance. – Benefits: Effective distribution ensures products reach the right customers at the right time and location, improving market reach and accessibility. – Drawbacks: Poor distribution strategies can lead to stockouts, overstocking, delivery delays, or missed market opportunities. – Applications: Place is particularly relevant in industries such as retail, logistics, e-commerce, and manufacturing.
Promotion
– Definition: The promotion element of the Marketing Mix encompasses all communication and marketing activities used to promote and sell a product or service. It aims to create awareness, interest, desire, and action (AIDA) among consumers. – Process: Promotion strategies involve advertising, public relations, social media marketing, content marketing, sales promotions, and personal selling. – Metrics: Metrics include brand awareness, click-through rates, conversion rates, return on investment (ROI), and customer acquisition cost (CAC). – Benefits: Effective promotion drives brand recognition, customer engagement, and sales. It helps build and maintain brand reputation and loyalty. – Drawbacks: Ineffective or misleading promotion can damage brand credibility and result in customer backlash. – Applications: Promotion is relevant across all industries and is tailored to specific target audiences and communication channels.
Metrics
– Definition: Metrics within the Marketing Mix are quantifiable measurements used to evaluate the performance and effectiveness of each element (product, price, place, promotion). Metrics provide insights into whether marketing strategies are achieving desired objectives and help in making data-driven decisions. – Process: Selecting appropriate metrics depends on specific marketing goals. Examples include return on ad spend (ROAS), customer lifetime value (CLV), customer acquisition cost (CAC), net promoter score (NPS), and market share. – Benefits: Metrics enable marketers to assess the impact of marketing efforts, allocate resources effectively, and refine strategies for better results. – Drawbacks: Overreliance on single metrics without considering the overall marketing mix can lead to suboptimal decisions. – Applications: Metrics are essential in digital marketing, e-commerce, advertising campaigns
While many understand marketing as “putting the right product in the right place, at the right price, at the right time,” few know how to implement this in practice.
Identifying the individual elements of a marketing mix and then creating robust plans for each allows a business to market accordingly.
It also allows a business to market to its strengths while minimizing or eliminating its weaknesses.
At the very least, a marketing mix should include the four Ps of marketing:
Product
This can include a tangible good or an intangible service.
Businesses must understand their product or service in the context of the problem that it aims to solve.
If the product does not seem to address any problem, then the potential profitability of the product should be re-analyzed.
The target audience, or those who will buy the product, must also be identified.
Price
Price has a direct impact on how well a product will sell and is linked to the perceived value of the product in the mind of a consumer.
In other words, price is not related to what the business thinks the product is worth.
Thus, it is important to know what the consumer values and price it accordingly.
To a lesser extent, price may also be influenced by rival products and value chain costs.
Promotion
Promotion includes all marketing communication strategies, such as advertising, sales promotions, and public relations.
Irrespective of the channel, communication must be a good fit for the product, price, and target audience.
Place
Place describes the physical location in which a customer can use, access, or purchase the end product.
Determining where buyers look for a product or service may seem simplistic, but it has implications for marketing and product development.
For example, place determines which distribution methods are most suitable.
It also dictates whether a product needs a sales team or whether it should be taken to a trade fair to be sampled and advertised.
Other elements of an effective marketing mix
Conventional marketing mixes are product-centric, but services and other intangible goods are also commonplace for many businesses.
People, process, and physical evidence are three more Ps that these businesses should implement.
People
People refers to the staff who are directly and indirectly involved in marketing the brand.
Employing the best people for the job is crucial since people shape the direction of the brand and therefore the goals and values of the business.
Process
Process covers the interface between business and consumer, otherwise known as customer service.
Process is important because customers often give feedback on their service, which enables a business to improve its systems across the board.
Effective processes should make purchasing pleasing and simple while simultaneously increasing brand equity.
Physical evidence
Physical evidence describes anything that consumers see when interacting with a brand. Physical evidence can take the form of packaging, branding, and even the physical layout and design of retail spaces and shop fronts.
Physical evidence also extends to how staff dress and interact with customers and the possible impact that this has on sales.
Principles of the Marketing Mix:
Alignment: The elements of the marketing mix should be aligned with the overall marketing and business objectives.
Customer-Centric: The marketing mix should be designed with a deep understanding of customer needs and preferences.
Adaptation: It may need to be adjusted over time to respond to changes in the market, competition, and consumer behavior.
Integration: The elements of the marketing mix should work harmoniously to create a consistent and compelling marketingstrategy.
Advantages of the Marketing Mix:
Strategic Planning: It provides a structured framework for developing marketing strategies.
Customization: The marketing mix allows businesses to tailor their approach to specific target markets.
Market Expansion: It facilitates entry into new markets and the launch of new products or services.
Competitive Advantage: Effective use of the marketing mix can create a competitive edge in the marketplace.
Challenges of the Marketing Mix:
Complexity: Balancing and optimizing the four elements can be complex, especially in dynamic markets.
Changing Consumer Behavior: Consumer preferences and behaviors may evolve, requiring adjustments to the marketing mix.
Resource Allocation: Effective use of the marketing mix often involves resource allocation decisions.
Global Considerations: In the case of international markets, cultural and regulatory differences may impact the marketing mix.
When to Use the Marketing Mix:
Product Development: During product development, the marketing mix helps define the product’s features and positioning.
Market Entry: When entering new markets or launching new products, it guides market entry strategies.
Competitive Response: In response to changing competitive dynamics, businesses can adjust their marketing mix to maintain or gain market share.
Strategic Planning: The marketing mix is a central component of strategic planning for businesses of all sizes.
What to Expect from Using the Marketing Mix:
Market Responsiveness: Effective use of the marketing mix can lead to improved responsiveness to market demands.
Customer Engagement: It enhances customer engagement by delivering products and services that meet their needs.
Revenue Growth: A well-implemented marketing mix can contribute to revenue growth and market expansion.
Brand Building: The marketing mix plays a significant role in building and strengthening brand identity.
Long-Term Impact of the Marketing Mix:
Sustainable Growth: Businesses that consistently adapt and optimize their marketing mix are better positioned for sustainable growth.
Competitive Edge: A strong marketing mix can provide a sustained competitive advantage.
Brand Equity: Over time, the marketing mix contributes to the development of brand equity and customer loyalty.
Innovation Culture: A focus on the marketing mix fosters a culture of innovation in product development and marketing strategies.
Key highlights
Marketing mix refers to a suite of actions that a business uses to promote its products or services in the market.
Marketing mix should as a minimum have strategies devised for product, price, promotion, and place.
Service-oriented businesses should adopt a broader marketing mix, otherwise known as the seven Ps of marketing.
What is marketing mix modeling and why it matters to understand how to balance your marketing mix?
Marketing mix modeling (MMM) is a statistical method for evaluating marketing campaign effectiveness.
The method quantifies the impact of multiple marketing inputs on market share or sales which then determines how much to spend on each.
Understanding marketing mix modeling
Marketing mix modeling uses statistical analysis to analyze the past and future impact of different marketing tactics on sales or profit.
The approach is based on the popular 4 Ps marketing mix theory.
In essence, the purpose of MMM is to measure the past performance of a campaign and improve future marketing return on investment (MROI).
Conclusions drawn from the statistical analysis then determine how resources can be better allocated across various tactics, products, segments, and markets.
Marketing mix modeling utilizes the multi-linear regression (MLR) statistical technique to assess the relationship between dependent and independent variables.
The dependent variable is normally market share or sales, while the independent variable could be price, distribution, or ad spend for different channels.
The four phases of marketing mix modeling
Each MMM project has four distinct phases that we have explained in detail below.
Phase 1: Data collection and integrity
In the first phase, the business collects data on the products to be analyzed, the desired timeframe, and the markets to be modeled.
The sales performance metric should also be quantified at this point.
Will it be volume, units, sales, or some other metric?
Brand margin rates and marketing spend should also be determined so that the MROI can be calculated later on.
MMM also requires the business to use data that will yield the best results. In other words:
Has the best available data been incorporated?
Is the data consistent over the entire life cycle?
Are there multiple years of data to account for factors such as seasonality?
Before moving to the next phase, key project stakeholders should also hold a review session to ensure data integrity.
In some cases, data will have to be aggregated or cleansed before moving forward.
Phase 2: Modeling
In the second phase, brand managers must collaborate with their internal analytics staff to discuss statistical details, specifications, and methods.
We noted earlier that a multi-linear regression is commonly used, but other methods such as time-series regression are also used.
Ultimately, the method chosen will depend on the organization’s goals, data quality, and in some cases the entity providing the statistical analysis on behalf of the client.
Phase 3: Model-based business measures
Once the statistical analysis has been performed, it will produce output data that measures how each tactic impacts sales.
The data must also answer or address the overarching purpose of the project, with many organizations choosing to frame project purpose as questions such as:
What is the best marketing plan to maximize future net profits with respect to the current and future budget?
For a particular demographic, what are the most efficient or effective marketing tactics?
What is the impact of advertising on consumer price sensitivity?
Which competitor advertising campaign is having the most negative impact on sales?
Most MMM projects will also feature a pie chart showing the decomposition of sales where sales volume is broken down according to each tactic.
These charts separate two types of tactics:
Core tactics – or those not controlled by the marketing team such as seasonality, distribution, weather, and competitive trade. Core tactics can also encompass the sales that would occur in the total absence of any promotional effort.
Incremental tactics – or those that are controlled by the marketing team.
Once a decomposition of sales has been performed, the organization can calculate three important metrics:
Effectiveness – which is determined by dividing the number of incremental sales by each marketing effort.
Efficiency – where incremental sales are divided by the expenditure of each tactic. This is normally the total media spend, and
Marketing return on investment – the MROI can be calculated by dividing the gross profit of each tactic by its total spend.
Phase 4: Optimization and simulation
In the final phase, MMM outputs are transformed into inputs for future marketing campaigns.
Simulations help the organization model the impact of a new tactic before it is used in a real-world scenario.
They also enable teams to determine the best combination of tactics that will enable them to achieve campaign goals.
Marketing mix modeling examples
In the past few decades, marketing mix modeling has been adopted by several Fortune 500 companies such as Kraft, The Coca-Cola Company, Pepsi, AT&T, and Proctor & Gamble.
While there has been particular interest from consumer packaged goods (CPG) companies, others now use MMM because of the increased prevalence of companies providing these specialist services.
Indeed, marketing mix modeling is popular in the retail and pharmaceutical industries because firms like Nielsen can provide syndicated data on stores, product categories, geographic markets, and distribution channels.
What’s more, the increased availability of time-series data has also seen MMM incorporated into industries such as telecommunications, financial services, hospitality, and automotive.
However, in these industries, it is acknowledged that marketing mix modeling is still in its infancy and will require further standardization to be effective.
MMM case study for Facebook advertisers
Facebook (now Meta) is one of several modern platforms that offer a family of services and apps that have dynamic and nuanced advertising needs.
Since consumer preferences are in a constant state of flux, this makes it difficult for brands to assess the impact of Facebook advertising compared to traditional channels such as television and print.
A standard marketing mix modeling project assesses data from two or three years. But for online social platforms, data over this time span may become outdated.
To counteract this tendency, Facebook recommends advertisers analyze data over a 6 to 12-month period.
They should then adjust their methods to account for the statistical power that is sacrificed when analyzing a shorter time frame.
Tailored data was first sourced from Facebook, Instagram, and Audience Network, which considered standard engagement metrics such as clicks but also paid impressions.
Data were then integrated with machine learning techniques such as the Bayesian belief network to analyze potential synergies between multiple channels.
This involved analyzing the relationship between six independent variables (video, display, Facebook app, organic search, Instagram, and paid search) and their dependent online and offline channels.
The results of the analysis showed how various marketing channels could drive impacts across other channels. A few of the more significant results are listed below:
Drivers of paid search – paid search (78%), offline drivers (10.9%), and organic search (5.5%).
Drivers of Facebook app – Facebook app (87.6%), offline drivers (7.4%), and display (4.0%).
Drivers of Instagram – Instagram direct (87.9%), video (6.0%), and Facebook app (3.7%).
In summary, Accenture found that disruptor brands that focus their resources on social, organic search, and offline channels could better impact paid search and, ultimately, increase their web traffic.
Key highlights on marketing mix modeling
Marketing mix modeling uses statistical analysis to analyze the past and future impact of different marketing tactics on sales or profit. The approach is based on the popular 4 Ps marketing mix theory.
Each marketing mix modeling project should have four distinct phases: data collection and integrity, modeling, model-based business measures, and optimization and simulation.
MMM is popular among consumer packaged goods companies such as Kraft, The Coca-Cola Company, Pepsi. It is also useful for brands advertising on social media platforms such as Facebook where markets and consumer behavior are more dynamic.
Amazon marketing mix case study
How does Amazon balance product, price, promotion, and place to create and sustain its competitive advantage?
Let’s delve into Amazon’s marketing mix below.
Product
Amazon offers a diverse selection of products to maintain its status as the foremost company in online retail.
These products support the company’s mission and vision and, thanks to continued expansion, can now be found in industries such as cloud infrastructure, database services, content production, artificial intelligence, gaming, and pharmaceuticals.
Amazon’s core product remains its eCommerce platform where the company sells private-label and third-party items to consumers across categories such as consumer electronics, art, home appliances, sports and outdoors, car accessories, jewelry, and home improvement.
Through its highly successful Amazon Prime membership program, the company offered free expedited delivery and discounted priority and residential express delivery.
Prime members also receive access to exclusive discounts and Amazon’s video, music, and e-book platforms.
Price
Amazon primarily uses market-oriented pricing to attract customers to its eCommerce platform.
Prices for the company’s private label Amazon Basics range are based on similar products sold by competitors.
As a retailer with a near-global presence, Amazon also uses the price discrimination strategy to vary prices for identical products according to region.
For example, the price of a Samsung television in Spain may be different to the price offered to consumers in the USA.
This enables the company to adjust prices based on local market conditions, consumer preferences, and perceived product value.
More generally speaking, Amazon uses technology to set and adjust prices based on the time of day, season, and competitor activity.
It also cleverly prices its Prime membership option to attract customers who want to take advantage of deals and discounts.
Promotion
In addition to marketing to broader audiences, Amazon also markets to individuals by analyzing their shopping habits and purchase behavior.
Using this information, it strives to turn one-time visitors or buyers into repeat, high-value, long-term customers.
To attract repeat purchasers, the company frequently promotes its fast delivery.
Amazon promotes is various products and services with ads on other websites, newspapers, billboards, television, and social media.
The Amazon Affiliate Program – one of the largest in the world – is also a vital promotional channel for the company with around 1.235 million affiliate sites advertising or reviewing products on the Amazon website.
Place
Amazon is primarily an online business that reaches customers on Amazon.com and its various region-specific derivatives.
However, the company does operate in the real world to some extent. Its acquisition of Whole Foods Market in 2017 allowed it to establish a bricks-and-mortar supermarket presence.
Amazon also operates several Amazon Fresh and Amazon Go stores, with the latter a chain of convenience outlets without cashiers where consumers pay for goods using an app.
In August 2021, Amazon announced it would open several new physical retail stores to extend its reach across electronics, home goods, and clothes.
Many see this move as a way for the company to own as much of the retail industry as possible.
Case Studies
Consumer Electronics (e.g., Apple):
Product: High-quality smartphones, laptops, and wearables with sleek designs.
Price: Premium pricing strategy for a perception of exclusivity.
Place: Apple Stores, authorized retailers, and online store.
Promotion: Creative advertising campaigns and product launches.
Fast Food Chain (e.g., McDonald’s):
Product: A menu of burgers, fries, and beverages.
Price: Value meals, combo pricing, and occasional promotions.
Place: A network of drive-thru outlets, dine-in restaurants, and delivery services.
Promotion: Television ads, social media campaigns, and Happy Meal toys.
Automobile Industry (e.g., Toyota):
Product: A range of vehicles from compact cars to SUVs and hybrids.
Price: Competitive pricing with options for customization.
Place: Dealerships, showrooms, and online configurators.
Promotion: Television and digital advertising, sponsorships, and test drive events.
Fashion Retail (e.g., Zara):
Product: Trendy clothing and accessories for men, women, and children.
Price: Competitive pricing with seasonal sales and discounts.
Place: Brick-and-mortar stores in prime locations and an online store.
Promotion: Seasonal fashion shows, social media marketing, and email newsletters.
Banking Services (e.g., Chase):
Product: A range of banking services including checking accounts, savings accounts, loans, and credit cards.
Price: Fee structures, interest rates, and introductory offers.
Place: Physical branches, ATMs, and online banking platforms.
Promotion: Advertising financial products, referral programs, and online tutorials.
Hotel Industry (e.g., Marriott):
Product: Various types of accommodations from luxury resorts to budget-friendly hotels.
Price: Room rates, loyalty programs, and seasonal discounts.
Place: Hotel locations, booking websites, and travel agencies.
Promotion: Online advertising, partnerships with travel websites, and loyalty rewards.
Tech Software (e.g., Microsoft Office):
Product: Software suites for productivity, collaboration, and communication.
Price: Subscription-based pricing models and one-time purchases.
Place: Online stores, authorized retailers, and corporate licensing.
Promotion: Product demos, webinars, and advertising tailored to specific business needs.
Beverage Industry (e.g., Coca-Cola):
Product: A wide range of beverages including carbonated soft drinks, juices, and bottled water.
Price: Various pricing strategies, including premium pricing for specialty products.
Place: Distribution through supermarkets, convenience stores, and vending machines.
Promotion: Extensive advertising campaigns, sponsorships, and product placements.
Healthcare Services (e.g., Mayo Clinic):
Product: Comprehensive medical services, research, and patient care.
Price: Transparent pricing for medical procedures and insurance coverage.
Place: Hospitals, clinics, telehealth platforms, and partnerships.
Promotion: Healthcare seminars, educational content, and patient testimonials.
E-commerce Platform (e.g., Amazon):
Product: An extensive online marketplace offering a wide range of products.
Price: Competitive pricing, discounts, and subscription services (e.g., Amazon Prime).
Place: Online platform accessible worldwide.
Promotion: Personalized recommendations, customer reviews, and Prime Day sales events.
Key Highlights:
Marketing Mix Fundamentals:
The marketing mix encompasses a comprehensive strategy for effective marketing planning.
Traditionally, it consisted of the four Ps: Product, Price, Promotion, and Place.
Additional elements have been introduced, including Physical Evidence, People, Process, and even Politics.
Understanding Marketing Mix:
A well-rounded marketing mix involves creating plans for each element to address strengths and weaknesses.
It ensures that marketing efforts align with the target audience and the problem the product or service solves.
Four Ps of Marketing Mix:
Product: Tangible goods or intangible services that address specific problems and target audiences.
Price: Directly affects sales and is linked to perceived value in the consumer’s mind.
Promotion: Includes marketing communication strategies like advertising, sales promotions, and public relations.
Place: Refers to the physical location where customers can access or purchase the product.
Additional Elements in Marketing Mix:
People: Refers to staff involved in marketing the brand, influencing its direction and values.
Process: Encompasses customer service and ensures effective interactions and purchasing experiences.
Physical Evidence: Anything consumers see when interacting with the brand, including packaging, branding, and more.
Marketing Mix Modeling:
Marketing Mix Modeling (MMM) is a statistical method to evaluate marketing campaign effectiveness.
It quantifies the impact of various marketing inputs on market share or sales to optimize resource allocation.
MMM involves four phases: data collection and integrity, modeling, model-based business measures, and optimization and simulation.
MMM Case Study for Facebook Advertisers:
Facebook used MMM to analyze its advertising impact compared to traditional channels.
Analyzing 6-12 months of data, Facebook adjusted methods to account for the dynamic nature of social media.
Accenture ran MMM analyses, integrating data from Facebook and other channels to optimize promotional efforts.
Amazon’s Marketing Mix Case Study:
Product: Amazon offers a wide range of products and services, including eCommerce, cloud infrastructure, content production, and more.
Price: Utilizes market-oriented pricing and price discrimination based on regions and market conditions.
Promotion: Targets individuals by analyzing shopping habits and uses ads, promotions, and affiliate programs.
Place: Primarily operates online but also has physical retail presence, such as Whole Foods and Amazon Fresh stores.
The 7 P’s marketing mix is an extension of the traditional marketing mix. In a 4 Ps marketing mix, you get Product, Price, Promotion, and Place. In a 7 Ps marketing mix variation, you get three other elements:
A marketing mix is critical as it enables companies to structure an effective marketing strategy by understanding the main channels that can be leveraged to build a viable business.
In some instances, some channels will be more critical in a marketing mix strategy.
Over time, it will be critical to balance out various channels as part of the marketing mix to build a solid business model.
Account-based marketing (ABM) is a strategy where the marketing and sales departments come together to create personalized buying experiences for high-value accounts. Account-based marketing is a business-to-business (B2B) approach in which marketing and sales teams work together to target high-value accounts and turn them into customers.
Ad Ops – also known as Digital Ad Operations – refers to systems and processes that support digital advertisements’ delivery and management. The concept describes any process that helps a marketing team manage, run, or optimize ad campaigns, making them an integrating part of the business operations.
Venture capitalist, Dave McClure, coined the acronym AARRR which is a simplified model that enables to understand what metrics and channels to look at, at each stage for the users’ path toward becoming customers and referrers of a brand.
Affinity marketing involves a partnership between two or more businesses to sell more products. Note that this is a mutually beneficial arrangement where one brand can extend its reach and enhance its credibility in association with the other.
As the name suggests, ambush marketing raises awareness for brands at events in a covert and unexpected fashion. Ambush marketing takes many forms, one common element, the brand advertising their products or services has not paid for the right to do so. Thus, the business doing the ambushing attempts to capitalize on the efforts made by the business sponsoring the event.
Affiliate marketing describes the process whereby an affiliate earns a commission for selling the products of another person or company. Here, the affiliate is simply an individual who is motivated to promote a particular product through incentivization. The business whose product is being promoted will gain in terms of sales and marketing from affiliates.
The bullseye framework is a simple method that enables you to prioritize the marketing channels that will make your company gain traction. The main logic of the bullseye framework is to find the marketing channels that work and prioritize them.
Brand building is the set of activities that help companies to build an identity that can be recognized by its audience. Thus, it works as a mechanism of identification through core values that signal trust and that help build long-term relationships between the brand and its key stakeholders.
According to inbound marketing platform HubSpot, brand dilution occurs “when a company’s brand equity diminishes due to an unsuccessful brand extension, which is a new product the company develops in an industry that they don’t have any market share in.” Brand dilution, therefore, occurs when a brand decreases in value after the company releases a product that does not align with its vision, mission, or skillset.
The brand essence wheel is a templated approach businesses can use to better understand their brand. The brand essence wheel has obvious implications for external brand strategy. However, it is equally important in simplifying brand strategy for employees without a strong marketing background. Although many variations of the brand essence wheel exist, a comprehensive wheel incorporates information from five categories: attributes, benefits, values, personality, brand essence.
The brand equity is the premium that a customer is willing to pay for a product that has all the objective characteristics of existing alternatives, thus, making it different in terms of perception. The premium on seemingly equal products and quality is attributable to its brand equity.
Brand positioning is about creating a mental real estate in the mind of the target market. If successful, brand positioning allows a business to gain a competitive advantage. And it also works as a switching cost in favor of the brand. Consumers recognizing a brand might be less prone to switch to another brand.
Business storytelling is a critical part of developing a business model. Indeed, the way you frame the story of your organization will influence its brand in the long-term. That’s because your brand story is tied to your brand identity, and it enables people to identify with a company.
Content marketing is one of the most powerful commercial activities which focuses on leveraging content production (text, audio, video, or other formats) to attract a targeted audience. Content marketing focuses on building a strong brand, but also to convert part of that targeted audience into potential customers.
One of the first mentions of customer lifetime value was in the 1988 book Database Marketing: Strategy and Implementation written by Robert Shaw and Merlin Stone. Customer lifetime value (CLV) represents the value of a customer to a company over a period of time. It represents a critical business metric, especially for SaaS or recurring revenue-based businesses.
Customer segmentation is a marketing method that divides the customers in sub-groups, that share similar characteristics. Thus, product, marketing and engineering teams can center the strategy from go-to-market to product development and communication around each sub-group. Customer segments can be broken down is several ways, such as demographics, geography, psychographics and more.
Developer marketing encompasses tactics designed to grow awareness and adopt software tools, solutions, and SaaS platforms. Developer marketing has become the standard among software companies with a platform component, where developers can build applications on top of the core software or open software. Therefore, engaging developer communities has become a key element of marketing for many digital businesses.
A digital channel is a marketing channel, part of a distribution strategy, helping an organization to reach its potential customers via electronic means. There are several digital marketing channels, usually divided into organic and paid channels. Some organic channels are SEO, SMO, email marketing. And some paid channels comprise SEM, SMM, and display advertising.
Field marketing is a general term that encompasses face-to-face marketing activities carried out in the field. These activities may include street promotions, conferences, sales, and various forms of experiential marketing. Field marketing, therefore, refers to any marketing activity that is performed in the field.
interaction with a brand until they become a paid customer and beyond.
Funnel marketing is modeled after the marketing funnel, a concept that tells the company how it should market to consumers based on their position in the funnel itself. The notion of a customer embarking on a journey when interacting with a brand was first proposed by Elias St. Elmo Lewis in 1898.
Funnel marketing typically considers three stages of a non-linear marketing funnel. These are top of the funnel (TOFU), middle of the funnel (MOFU), and bottom of the funnel (BOFU). Particular marketing strategies at each stage are adapted to the level of familiarity the consumer has with a brand.
A go-to-market strategy represents how companies market their new products to reach target customers in a scalable and repeatable way. It starts with how new products/services get developed to how these organizations target potential customers (via sales and marketing models) to enable their value proposition to be delivered to create a competitive advantage.
The term “greenwashing” was first coined by environmentalist Jay Westerveld in 1986 at a time when most consumers received their news from television, radio, and print media. Some companies took advantage of limited public access to information by portraying themselves as environmental stewards – even when their actions proved otherwise. Greenwashing is a deceptive marketing practice where a company makes unsubstantiated claims about an environmentally-friendly product or service.
Grassroots marketing involves a brand creating highly targeted content for a particular niche or audience. When an organization engages in grassroots marketing, it focuses on a small group of people with the hope that its marketing message is shared with a progressively larger audience.
Growth marketing is a process of rapid experimentation, which in a way has to be “scientific” by keeping in mind that it is used by startups to grow, quickly. Thus, the “scientific” here is not meant in the academic sense. Growth marketing is expected to unlock growth, quickly and with an often limited budget.
Guerrilla marketing is an advertising strategy that seeks to utilize low-cost and sometimes unconventional tactics that are high impact. First coined by Jay Conrad Levinson in his 1984 book of the same title, guerrilla marketing works best on existing customers who are familiar with a brand or product and its particular characteristics.
Hunger marketing is a marketing strategy focused on manipulating consumer emotions. By bringing products to market with an attractive price point and restricted supply, consumers have a stronger desire to make a purchase.
Integrated marketing communication (IMC) is an approach used by businesses to coordinate and brand their communication strategies. Integrated marketing communication takes separate marketing functions and combines them into one, interconnected approach with a core brand message that is consistent across various channels. These encompass owned, earned, and paid media. Integrated marketing communication has been used to great effect by companies such as Snapchat, Snickers, and Domino’s.
Inbound marketing is a marketing strategy designed to attract customers to a brand with content and experiences that they derive value from. Inbound marketing utilizes blogs, events, SEO, and social media to create brand awareness and attract targeted consumers. By attracting or “drawing in” a targeted audience, inbound marketing differs from outbound marketing which actively pushes a brand onto consumers who may have no interest in what is being offered.
Integrated marketing describes the process of delivering consistent and relevant content to a target audience across all marketing channels. It is a cohesive, unified, and immersive marketing strategy that is cost-effective and relies on brand identity and storytelling to amplify the brand to a wider and wider audience.
The marketing mix is a term to describe the multi-faceted approach to a complete and effective marketing plan. Traditionally, this plan included the four Ps of marketing: price, product, promotion, and place. But the exact makeup of a marketing mix has undergone various changes in response to new technologies and ways of thinking. Additions to the four Ps include physical evidence, people, process, and even politics.
Marketing myopia is the nearsighted focus on selling goods and services at the expense of consumer needs. Marketing myopia was coined by Harvard Business School professor Theodore Levitt in 1960. Originally, Levitt described the concept in the context of organizations in high-growth industries that become complacent in their belief that such industries never fail.
Marketing personas give businesses a general overview of key segments of their target audience and how these segments interact with their brand. Marketing personas are based on the data of an ideal, fictional customer whose characteristics, needs, and motivations are representative of a broader market segment.
Meme marketing is any marketing strategy that uses memes to promote a brand. The term “meme” itself was popularized by author Richard Dawkins over 50 years later in his 1976 book The Selfish Gene. In the book, Dawkins described how ideas evolved and were shared across different cultures. The internet has enabled this exchange to occur at an exponential rate, with the first modern memes emerging in the late 1990s and early 2000s.
Microtargeting is a marketing strategy that utilizes consumer demographic data to identify the interests of a very specific group of individuals. Like most marketing strategies, the goal of microtargeting is to positively influence consumer behavior.
Multichannel marketing executes a marketing strategy across multiple platforms to reach as many consumers as possible. Here, a platform may refer to product packaging, word-of-mouth advertising, mobile apps, email, websites, or promotional events, and all the other channels that can help amplify the brand to reach as many consumers as possible.
Multi-level marketing (MLM), otherwise known as network or referral marketing, is a strategy in which businesses sell their products through person-to-person sales. When consumers join MLM programs, they act as distributors. Distributors make money by selling the product directly to other consumers. They earn a small percentage of sales from those that they recruit to do the same – often referred to as their “downline”.
The Net Promoter Score (NPS) is a measure of the ability of a product or service to attract word-of-mouth advertising. NPS is a crucial part of any marketing strategy since attracting and then retaining customers means they are more likely to recommend a business to others.
Neuromarketing information is collected by measuring brain activity related to specific brain functions using sophisticated and expensive technology such as MRI machines. Some businesses also choose to make inferences of neurological responses by analyzing biometric and heart-rate data.
Neuromarketing is the domain of large companies with similarly large budgets or subsidies. These include Frito-Lay, Google, and The Weather Channel.
Newsjacking as a marketing strategy was popularised by David Meerman Scott in his book Newsjacking: How to Inject Your Ideas into a Breaking News Story and Generate Tons of Media Coverage. Newsjacking describes the practice of aligning a brand with a current event to generate media attention and increase brand exposure.
A microniche is a subset of potential customers within a niche. In the era of dominating digital super-platforms, identifying a microniche can kick off the strategy of digital businesses to prevent competition against large platforms. As the microniche becomes a niche, then a market, scale becomes an option.
We can define pull and push marketing from the perspective of the target audience or customers. In push marketing, as the name suggests, you’re promoting a product so that consumers can see it. In a pull strategy, consumers might look for your product or service drawn by its brand.
Real-time marketing is as exactly as it sounds. It involves in-the-moment marketing to customers across any channel based on how that customer is interacting with the brand.
Relationship marketing involves businesses and their brands forming long-term relationships with customers. The focus of relationship marketing is to increase customer loyalty and engagement through high-quality products and services. It differs from short-term processes focused solely on customer acquisition and individual sales.
Reverse marketing describes any marketing strategy that encourages consumers to seek out a product or company on their own. This approach differs from a traditional marketing strategy where marketers seek out the consumer.
Remarketing involves the creation of personalized and targeted ads for consumers who have already visited a company’s website. The process works in this way: as users visit a brand’s website, they are tagged with cookies that follow the users, and as they land on advertising platforms where retargeting is an option (like social media platforms) they get served ads based on their navigation.
Sensory marketing describes any marketing campaign designed to appeal to the five human senses of touch, taste, smell, sight, and sound. Technologies such as artificial intelligence, virtual reality, and the Internet of Things (IoT) are enabling marketers to design fun, interactive, and immersive sensory marketing brand experiences. Long term, businesses must develop sensory marketing campaigns that are relevant and effective in eCommerce.
Services marketing originated as a separate field of study during the 1980s. Researchers realized that the unique characteristics of services required different marketing strategies to those used in the promotion of physical goods. Services marketing is a specialized branch of marketing that promotes the intangible benefits delivered by a company to create customer value.
Sustainable marketing describes how a business will invest in social and environmental initiatives as part of its marketing strategy. Also known as green marketing, it is often used to counteract public criticism around wastage, misleading advertising, and poor quality or unsafe products.
Word-of-mouth marketing is a marketing strategy skewed toward offering a great experience to existing customers and incentivizing them to share it with other potential customers. That is one of the most effective forms of marketing as it enables a company to gain traction based on existing customers’ referrals. When repeat customers become a key enabler for the brand this is one of the best organic and sustainable growth marketing strategies.
360 marketing is a marketing campaign that utilizes all available mediums, channels, and consumer touchpoints. 360 marketing requires the business to maintain a consistent presence across multiple online and offline channels. This ensures it does not miss potentially lucrative customer segments. By its very nature, 360 marketing describes any number of different marketing strategies. However, a broad and holistic marketing strategy should incorporate a website, SEO, PPC, email marketing, social media, public relations, in-store relations, and traditional forms of advertising such as television.
Gennaro is the creator of FourWeekMBA, which reached about four million business people, comprising C-level executives, investors, analysts, product managers, and aspiring digital entrepreneurs in 2022 alone | He is also Director of Sales for a high-tech scaleup in the AI Industry | In 2012, Gennaro earned an International MBA with emphasis on Corporate Finance and Business Strategy.
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