The marketing mix and the future of digital marketing

The world is progressing and advancing at a supersonic rate, what in 1990 seemed only possible in Hollywood, is today seen as archaic.

Today new technology is being adopted in a matter of months, as opposed to the many years it used to take.

This image clearly illustrates just how long it many technologies took to reach critical mass. There is a clear trend the more recent the product was invented the quicker it is to be adopted.

http://techliberation.com/2009/05/28/on-measuring-technology-diffusion-rates/

Social media networks like Twitter, Youtube and Facebook, are accessed and used every day by hundreds of millions of users world wide.

However, more on more of these technologies are being integrated on the mobile phone, this is part of the theory of convergence which basic premise is that all technologies will eventually merge into one.

This means that users will have access 24 hours a day 7 days a week, and as mobile internet and wireless  capabilities there will soon be no limit to where the user can be!

There is no doubt that technology is advancing but what are the effects on the marketing mix in the world of retail?

The four P's is one of the most famous marketing principles. Developed in the 1960's its message is still relevant for any marketer today.

Let us look at each of the four P's individually: 

Price:  The power of search is rapidly changing the way we make purchasing decisions, if is see a pair of Nike runners in a shoe shop instead of paying the offered retail price I can search the model online and view what the going price is I can quickly check if the deal I am being offered is competitive. Furthermore, price compare websites list a range of retailers and the price being offered by each retailer. The internet is advancing and technologies are already being developed that all one needs to do is take a picture of a product or even the barcode and list of stockist will become available.

It is clear that with the ease of information and portable information that is being offered, price is becoming increasingly more relevant and important.

Place: the old real estate catch phrase location, location, location whilst may be important for residential houses is it really that important for retailers.

The answer is currently it is still a very important part of business, however, this importance is changing.

Online shopping is becoming increasingly more relevant to the consumer and increasingly more popular, was at its current stage it is not the highest priority of the Australian market it is growing (please see digital life for more information). Online shopping is taking away the relevance for even having a shop, although the bricks and clicks model (i.e having both a virtual/online shop and a retailer such as Coles and Colesonline.com.au) is still important there are many retailers that only operate online.

Furthermore, with technologies being developed that you can scan and use your finger print to sign for goods purchased on the internet using your iphone, the point of sale is no longer limited to the position of the shop it is everywhere. (Please see The Age for more information).

So what is the role of position in the modern era? The role of search, Google Adwords and other paid search functions are becoming increasingly more important for businesses to cut through the clutter. Search Engine Optimisation is an increasingly important and demanded trade, as to be on that first page of a Google search is the number one aspiration of any business with a website.

This leads us into promotion:

Advertising is playing an ever growing significant part of our lives however, as the amount of advertising that as consumers we are exposed to increases so to our likelihood to actually hear the message decreases. Business and companies are trying harder and harder to break through the clutter, with Integrated Marketing Campaigns (IMC) set up to target the user at as many touch points as possible. Marketers are trying harder and harder to reach the consumer. So much so, that privacy laws are being forced into legislation on a regular basis . Laws such as the "Do not call registry" are set up to protect the privacy of the general public. 

Online advertising is shaking up the traditional advertising format with reports that online advertising is growing at over 28% (please see businessweek for more information.) However, paid advertising is less relevant when compared to the power of social media marketing. (please see my previous post for more information).

So that leaves us with product:

Whilst, we can not make any general comments on the different products in different industries what is clear that any business must offer a product that information on it can be found online, and if possible integration with technologies is highly recommended. "Branded Apps" is just one area that brands can use to integrate their product  with the users dynamic and technologically advancing life.

Take the branded Mazda app

The you cruise MX-5 app allows users to take the car for a virtual test drive in a gaming format

To conclude, it is unclear where the future is heading however, what is clear that a critical success factor for all businesses is going to be the ability to stay relevant and in-touch with the rapid growth of technology. After all we are all marketing in a new era.