Digital Marketing is a data-driven type of marketing that goes beyond traditional marketing approaches. It is a set of techniques used via digital channels on the World Wide Web. This includes search engines, websites, email marketing, social media platforms, and applications on handheld devices among others.
Digital Marketing Trends
- 81% of customers conduct their research online before making a big purchase in-store.
- 18% of online searches for something local convert into a sale.
- 90% of searchers have not decided on a specific brand before starting their online search.
- 84% of people reportedly trust online reviews as much as their friends.
- 92% of people who search for information on their phone make a subsequent related purchase.
A successful digital marketing strategy relies on a well-thought-out marketing mix, also known as the 5Ps of marketing. The marketing mix combines a useful product, sold at the right price and at the right place, using convincing promotional tactics and targeting interested people. If you are wondering what are the 5Ps in marketing, it is as follows: Product, Price, Place, People and Promotion.
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Let us carefully define each one of them and how they can impact your organization.
The First P Stands for PEOPLE
Who Is Your Target Market?
Your customers are the main reason for the existence of your brand. As a company, you look for a group of people with a specific need and answer it. The first P of Digital Marketing is People. The target market is a segment of the community that a company wants to sell its products and offer its services to. The development of a marketing plan relies on this segment.
Related article: The Complete Guide to Finding Your Target Market
Furthermore, your target market can be categorized based on:
A. Demographic Factors
Demographics refers to the study of population and their behavior relative to the changes in the environment. Factors such as age, gender, race, education, career and other categories define the demographic aspect of the market.
An example of a demographic segmentation regarding age includes Baby Boomers who were born from 1946 to 1964 and Millennials who were born from 1980 to 2000. Another classification comprises of teenagers, young adults, and senior citizens.
To name a few, there are specific market segments regarding demographics factors: age, gender, marital status, income level, race, education, and employment.
Example Scenario: You are a preschool institute, and you have a social media page promoting your summer classes for 2018. Regarding demographic factors, create a marketing campaign that will reach a target segment with the following description: start up couple or parents (married or single parents) in class A to higher C regarding social class. Avoid marketing towards young professionals (without kids) because your campaigns will be irrelevant.
B. Geographical Factors
Geographical factors define the target market regarding location. The market is further segmented into towns, cities, regions, states, countries, and continents. Geographic locations may also refer to different places, may they be in rural or urban areas.
With this market segmentation factor, the needs of the target market are specific to their location. You define your market based on where they are located. This approach is practical for organizations that cater to a broad demographic customer base found in different locations.
Example Scenario: For an international apparel brand, different clothing collection can be advertised and sold at a various geographical location because of the practicality. Say, winter clothing lines are promoted and sold in Australia during June to August because it is winter. However, this set of clothing cannot be sold in the Japan from June to August because these are the summer months in that country.
C. Behavioral Factors
A company’s target market can also be defined according to different behavioral factors. Behavioral factor refers to how an individual identifies, responds and uses a product or service offering. A customer considers many things before making the purchase decision. Furthermore, a customer behaves differently regarding occasion, the frequency of usage and purpose.
Some of the key factors about consumer behavior include mood, brand loyalty, responsiveness to price, reaction to alternatives or substitute products, and among others.
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Example Scenario: The target market for flowers and chocolates during Christmas or Valentine’s day are particular because of the season. These products may sell in other months, but the sales performance is not at par.
D. Psychographic Factors
Market segments can also be categorized in terms of Psychographic Factors. This is how people choose to live their daily lives. These factors can be related to as the values, personalities, attitudes, lifestyles and general interests.
Marketers or business owners can further find their niche in the market using psychographic factors because these are very specific and divide the market further into subgroups.
Example Scenario: Vegan restaurants have a niche market for the vegan society. Once they choose to use a social media channel to promote their restaurant, the marketers or business owner must be specific with their content, promotional ads and the like.
In another example, luxury cars have a specific market as well. This market segment is discriminating in nature and has all the money to buy anything of their liking.
The Second P Stands for PRODUCT
What Are You Selling?
Once the target market is identified correctly, a marketer or business owner now has a clear understanding of what the customers need or want.
The second “P” in the 5Ps of marketing pertains to “Product”. A product can be in any form that satisfies the needs of customers. This can be information, a physical product, a service or an offer that a customer will make use of. It can be a tangible product or an intangible service. In the digital world, a product can be a file, access to another web page, or a service that can be obtained a few moments after an online transaction.
Guide Questions in Creating a Product
- What are the needs and wants of the target market?
- Does the product or service satisfy the needs of the customers?
- With your product or service, what are the features of the product or service?
- How will the customer use the product or service?
- What is the branding proposition of the offering?
- Given the overall offering, how is the product differentiated from competitors?
The Third P Stands for PRICE
How Much Is the Target Market Willing to Pay?
You have to consider the amount of money each customer is willing to let go in return for the value they get from your offerings. As a business owner, you have to factor in the level of willingness of your customer to pay because the price is part of your unique selling proposition.
A robust pricing scheme should be clear and transparent on other charges. Price is one of the 5Ps of marketing that has to be carefully crafted because your customers have access to different other products online. It is easier to compare the benefits and prices of other brands.
Also, pricing is something you have to be careful about when working on your digital marketing strategy. Online shoppers want high-quality brands with differentiated benefits at competitive price offers. Paying a higher price needs to be justified. The same goes with paying a low cost, because low pricing may suggest that your product has low quality.
Guide Questions on Deciding the Price
- What is the overall value of the product or service?
- Does the price match the quality and value of your offering?
- Are your customers willing to pay for the price you set?
- Is the target market sensitive to price changes, should industry rates increase or decrease?
- Will a small increase in your price cause customers to shift to another brand? Or will a slight decrease in price help you gain extra profit margin?
- What promotional offers or discounts can be offered?
- How does your pricing scheme compete with other players in the market
The Fourth P Stands for PLACE
Where Can Your Customers Find You?
The fourth “P” in the 5Ps of marketing is “Place”, which refers to the location or channel where your products or service can be found. Place refers to the distribution of your offering. Remember that the more accessible and visible your products or services are, the more significant chance that your target market will see and buy your brand.
In digital marketing, the place is the virtual channel where you can display and sell your brand. There are various places you can sell, and your brand can be accessed anytime, anywhere. Below are some of the digital marketing channels a marketer or business owner can explore:
Search Engine Optimization (SEO) – Your customers should be able to easily find you and your products in search engines and SEO helps you rank better and get more traffic.
Social Media Marketing Tools – Do not get left behind, especially when it comes to social media. Social media platforms are not just designed to promote products. Sellers can also sell and customers can actually make purchases through social media sites.
Social Media Channels
- Facebook: Biggest social network with an estimated 2.85 billion monthly active users.
- Instagram: Gained one billion monthly active users.
- Twitter: Average of 186 million monthly active microbloggers.
- Pinterest: Fastest growing site to date; reaching 478 million monthly active users.
- LinkedIn: Professional social media platform with over 756 million monthly active users.
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Image and Video Hosting Channels
- Daily Motion
These are digital avenues where people can buy and sell specific products or services.
- Big Commerce
- Big Cartel
- Email marketing
- Direct advertising
Guide questions in identifying the place or channel
- Where do you find most of your customers?
- What platform do buyers use most often?
- Are you present in digital channels commonly used by your target market?
- How will you access the right distribution channel?
- Do you have direct access to your customers online?
- Are your products available at physical stores, as well?
- What do your competitors do and where do they sell their brands?
The Fifth P Stands for Promotion
What’s In It For Your Customers?
The fifth “P” in the 5Ps of marketing refers to “Promotion”. It all manners in which you inform your customers about your product and entice them to make the purchase decision. You can make the best product for your customers, but it can only be satisfied with the right promotion. You can use various distribution channels online, but it will not be successful if not paired with the appropriate promotional plans.
When it comes to promotion as one of the 5Ps of marketing sense, make sure to stand out from the competition because of your accessibility via the Internet, that is why it is essential for you to level up in terms of promotion.
Guide Questions in Crafting the Right Promotional Campaign
- How do you send the message to your customers?
- Are your offerings attractive enough to entice customers to buy?
- What are your promos? Do you offer discounts or limited-time offers?
- Have you considered using the most efficient Digital Marketing channels?
- When is the best time to promote? Are your products or service seasonal?
- What are the strategies of competitors in terms of promotion?
- Are you affected by your competitor’s promotional offers?
The 5Ps of Digital Marketing are People, Product, Price, Place, and Promotion. These elements make up the marketing mix which you need to ace your online business via the Internet. Each of the five elements is vital to your sales and business growth. A clear and strong Digital Marketing strategy will help you succeed in bringing more traffic to your website, capturing the interest of your visitors and converting leads to sales.
Let us know what your Digital Marketing mix looks like in the comments below.