Individual assignment how digital tools are changing marketing mix (4ps) mkt318m

INDIVIDUAL ASSIGNMENT
How digital tools are changing marketing mix (4Ps)
MKT318m

Lecturer: Nguyen Minh Quang

Name: Bui Duc AnhAnh
Class: MKT1708

Student ID: HS160928
Date: Summer 2022

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OUTLINE:
I.

INTRODUCTION
1. Overview of changing in the digital world
2. Definition of marketing mix
3. How digital tools are changing elements of marketing mix (in
general)

II. HOW DIGITAL TOOLS ARE CHANGING MARKETING MIX
1. Product
1.1. Customer co-creation
1.2. Sharing economy
2. Promotion

2.1. User generated content
2.2. Doppelganger brand
3. Place
3.1. New retailer
3.2. Desktop manufacturing
4. Price
4.1. Pay What You Want
4.2. Freemium
III. DISCUSS HOW COMPANIES CAN REACT TO THE
CHANGING OF THE DIGITAL MARKETING ENVIRONMENT.

IV. CONCLUSION
V. REFERENCE

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I.

INTRODUCTION:
1. Overview of changing in digital world:

The development of modern technology has made many changes in our lives. It
has made tech products evolve faster, our lives are better and more interesting.
The digital world has opened up with the advent and development of modern
technology, digital tools and resources, to make the most of our available
resources combined with the Internet, human-machine interaction, smart
devices and advanced technology.

The digital world has brought us tremendous benefits in every aspect of our
lives. Especially when we've just been confronted by one of the most dangerous
epidemics of COVID-19, with the great humanitarian crisis between Russia and
Ukraine making it very difficult for trade and development. Human
development is severely affected. The General Statistics Office indicates that
the global economy could decline by more than 1% by 2022. In developing
economies like Vietnam, inflation could rise by 5.9% (according to the IMF).
This would have a consumer effect causing tighter spending and reduced
purchasing of goods. So businesses and marketers must find ways to innovate
themselves, raise awareness about brands, and increase their sales in new ways.
With human creativity and resilience, the digital world is constantly being
explored and developed. Under the difficult circumstances, digital technology
has the flexibility to integrate into all areas of operation.

2. Definition of marketing mix:
Marketing is a function of business that determines the needs of the consumer. It
also identifies target markets as well as applies services and products to serve
such markets.

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The strong growth of digital tools has changed the marketing strategies of
businesses, especially in the marketing mix. So what is the marketing mix?
The Marketing Mix refers to the set of actions, or tactics, that a company uses to
promote its brand or product in the market. The key 4Ps that make up a typical
Marketing Mix - Price, Product, Promotion, and Place. Today, however, the
marketing mix increasingly includes several other Ps like Packaging,

Positioning, People, and even Politics as the key mix.
A marketing expert named E. Jerome McCarthy created the Marketing 4Ps in
the 1960s. This classification has been used throughout the world. Business
schools teach this concept in basic marketing classes.
The marketing 4Ps are also the foundation of the idea of the marketing mix.
The 4Ps of marketing are a model for enhancing the components of the
"marketing mix" - how a business brings a new product or service to market. It
helps to identify marketing options in terms of price, product, promotion, and
placement of a business's product to meet a customer's specific wants or needs.

3. How digital tools are changing elements of marketing mix (in
general):
Digital tools have made the marketing industry make big changes compared to
the past by taking advantage of search engines, marketing tools for marketers to
use to research the market, classify customers, and bring the company's

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products to the right audience. It requires marketers to constantly improve their
knowledge to keep up with the rapidly changing technology. The use of digital
tools has made marketing easier, and highly effective, saving time and costs,
and quickly reaching potential customers.

II. HOW DIGITAL TOOLS ARE CHANGING MARKETING MIX
1. Product:
In order to capture the impact of digital tools on the marketing mix, we will go
into the first of the four elements, which is the product. Commodities are

tangible or intangible items intended to satisfy a need or want of a customer.
Products that people can touch and hold such as tables, water bottles, shoes, ...
are tangible products. On the contrary, there will be products that do not exist in
a specific form, but it is an idea in the human brain and that idea is bought by
others or is an actual experience, it is an invisible product. Every business needs
to find their company's unique products, to develop long-term and compete with
other competitors, so understanding the needs of customers is really important.
the time you perfect it, they already want something newer.= - Steve Jobs.
Instead of the company as before, only the company is the creator and producer,
now the customer is involved in the production and digital is the connecting
tool.
To be able to develop a good product that meets the needs of users, we should
use marketing tools to develop product images for users by a number of
measures:

1.1. Customer co-creation:
● Co-creation is a business practice that refers to the process of designing a
product or service in which the consumer will participate in the process.
Today's users enjoy better education, more diverse needs and want, and
become a resource for mining businesses. There are four different forms

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of co-creation: co-designing, collaborating, submitting, and tinkering;
with each type of guest being able to engage with their creative idea.

● Participants: are everyone from seniors, experts, managers, suppliers and
especially customers.
● Objective: All people involved in co-creation will develop the idea and
finalize it as a blueprint; plan, and then send it to the business to receive
feedback. That idea will be evaluated and voted on by everyone from the
business: directors, managers,...and customers of the business. Products
that are highly appreciated and have outstanding votes will be validated
by the company and put into the production process to create new
products.
● What drives people to co-creation is social and corporate recognition,
being known for their unique creative ideas, and being produced. Along
with that, the author of an idea recognized in the co-creation activity will
receive additional financial incentives from the business and a discount
on the revenue of the product created by him.
● Business benefits: Involved creators will help drive new product
launches, New products entering the market will be supported by more
people because the product has gone through the process of evaluating

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ideas from clients. Therefore, the revenue for the business is promoted
and developed more.
● Lego is the most famous toy brand in the world, surely we all have chair
clips with many different designs. It is known as a toy not only for
entertainment but also to help us enhance our concentration, stimulate
creativity, fine motor and promote problem-solving skills. The Lego Ideas
platform was officially launched in 2014, it allows fans to submit their

new product designs or even ideas for entire Lego sets to their liking.
Every month, the site receives tons of creative designs from Lego fans
around the world. Their ideas will be posted for all to see and comment
on. With an article receiving 10,000 supporters, that idea will officially be
developed by the Lego team into a new product. On average, Lego
releases about 10 of these ideas as official Lego products each year. This
initiative therefore plays an important role in the Lego product
development strategy. Currently, many businesses use this form to
connect themselves with customers as well as show that businesses
always listen to their thoughts and aspirations. The online news service
Digg.com and the cable channel Current Television both provide most of
their content directly from their users. In contrast to the standard
approach used by commercial news organizations, Digg.com has
decentralized editorial control and instead, allowed a community of more
than 300,000 registered reviewers to vote for stories they deem worthy of
showing.

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1.2. Sharing economy:
● Next is the sharing economy, a mixed market model that refers to a
peer-to-peer network based on shared access to goods and services. There
are many areas that a business cannot provide forever on their own, they
will cooperate with many other businesses. From here, the sharing
economy begins to take shape, which will reduce the burden on
businesses. Not only businesses but even individuals or simply people
who like to share also want to apply the sharing economy model. Even in

developing countries like Vietnam, this model is being applied quite
successfully.

● Benefits of Sharing Economy: Since the sharing economy appeared, it
has created countless positive values for society. Specifically like:
● Job Opportunities: It opens up many more job opportunities for society,
as well as diversifies the number of occupations.
● Minimize Waste of Assets: A product when its owner does not need it
will exchange it with someone who needs it. Both parties benefit, the
owner of the property will receive a cost. People who need to use
property will solve their problems.
● Innovation
➢ The sharing economy model has pushed traditional companies to
innovate, continuously improve, and apply technology as a lever for
strong development.
➢ Create an extremely competitive environment, always aiming for the new
and the good. And in this case, the customer is always the beneficiary.

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● Minimizing Transaction Risks: In the sharing economy model,
transactions between customers and suppliers always have an
intermediary to guarantee. And the same goes for customers, this will
help both parties ensure their own safety.
● Protecting the Environment: Making the most of idle assets will help us
reduce the large amount of waste produced each year. This not only helps
us to limit the exploitation of resources but also helps the environment to

be cleaner.
● Activate: Basically, there will be 3 objects in this sharing economy
model. There are asset suppliers, demanders, and connection units. The
asset supplier and the demand side will both link with the intermediary to
deliver and receive their products. All subjects receive their own benefits.
And are guaranteed benefits, property providers and tenants can rest
assured because there is a guaranteed intermediary.
● Example: The appearance of Grab has broken the long-standing
traditional market and formed a new technology ride-hailing market.
Grab succeeds with a breakthrough based on the sharing economy, the
company connects with available resources to develop services. They
connect with freelance drivers, people who have a car but don't need to
use it, people who know how to ride but don't have a car, etc., and thereby
optimize costs. and offer customers a price that fits everyone's pocket.
The customer experience is improved and enhanced by the extensive
distribution network, saving time and being able to always give their
opinion and feedback after each trip. In Hanoi, as of December 2017,
Grab taxi has 11,474 vehicles participating in the pilot in the area,
accounting for 90.67% of the licensed vehicles operating in the city. The
success of Grab has led to the boom and development of the ride-hailing
market.

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2. Promotion:
Promotion is the method of communication that marketers use to provide
information about products; services to customers. Along with that is the

planning of advertising, sale promotion, public relations and direct marketing to
increase awareness among customers.
• Personal Selling • Sales Promotion
• Public relations (PR) • Direct Marketing• Advertising
When a product is launched and appears on the market, businesses will always
find ways to make their products stand out from competitors' products.
Promotions will be launched to attract customers, including an on-site trial
service to stimulate human curiosity. It is considered a way for businesses to
communicate with customers. The most talked about theory on how to convince
customers is the Elaboration Likelihood Model or ELM for short. This model
shows us that there are two main paths to customer persuasion. The first gland,
the central gland, is marked by internal awareness, which enters the
consciousness of each person from childhood to adulthood, and the second, the
peripheral gland, is emotional in nature. Calculating more losses, advantages
and disadvantages, sharp eyes. images combined with sound to influence
customers.

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2.1. User Generated Content:
● User-generated content is any brand-driven content created by users. In
recent times, user-generated content has become a great way for
businesses to achieve the same marketing goals as using advertising or
creating content without much investment.
User-generated content is created in many forms through a variety of
channels.

● Business benefits: Low production costs because users create content
about their businesses, this will help advertise products and businesses
instead of businesses implementing marketing strategies.
● Gain the trust of customers: Users will share their experiences about the
products and services of the business, so they will receive higher trust
from customers.
● Good impact on revenue: Gaining the trust of customers through creative
user content will attract great attention from customers, awakening their
purchasing behavior. This will help businesses increase revenue quickly.
● Fresh content: lots of users create content so you won't have to worry
about duplicate content. The content is innovative and extremely rich.
What drives users to engage in content creation is the social recognition
of their products. Along with that, there are financial incentives for

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businesses. It is these things that will help users be extremely excited
when participating in content creation.
● Conditions for enterprises to apply UGC: Cooperation impact on others,
individual quality of the UGC, competition how much better the UGC
was than that provided by others. What motivates users to contribute is
that UGC will receive human and social recognition, and rewards
commensurate with their achievements.
● You can see currently the wave of doing KOLs is being responded to by
many people. People instead of seeing traditional advertisements, people
tend to see other people's reviews about that product, see if they have any
comments and reviews about that product. Especially when the product is

used and evaluated by famous people, it creates more trust in the hearts of
consumers.
● GoPro uses User Generated Content (UGC) to promote its YouTube
channel - with the majority of GoPro's top-performing YouTube videos
on their channel being UGC content. GoPro created UGC through its
GoPro awards program which generated 130K website visits in 2019.
The program includes a number of content challenges that reward
contestants in terms of equipment, visibility, and cash - awards $1 million
per year to the top content creators in total prizes. (Rightmetric, 2020,
Digging into GoPro’s User Generated Content Strategy for YouTube)
Entrants have three months to film and submit content that follows the
contest guidelines, such as raw clips only, no music, and 100% GoPro
HERO 9 Black footage.
At the end of the Million Dollar Challenge, GoPro creates a featured reel
featuring all the winning videos. The GoPro final challenge had 42,000
clips submitted and 45 creators split the million-dollar prize pool.
This challenge drives new GoPro camera purchases as all submitted
footage must be shot on their latest release. This also helps to introduce
new camera features (clearer video, larger screen, camera stabilization,
etc.)

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2.2. Doppelganger brand image:
Another aspect mentioned here is the doppelganger brand image. The
appearance of an advertisement or a product happens in two directions, one is
received positively but the other is not satisfied. When so many people

participate in product reviews that sometimes stopping will feel inappropriate,
they will leave negative reviews. Moreover, with competitors, creating a
conflict between advertising and use makes customers confused and doubtful
about the product they have bought.

In 2021, Xiaomi spent 7 billion VND to change the logo. It created a media
wave about the doppelganger brand image. Anyone can recognize this logo is
not much different from the previous logo. People talk about the price of VND 7

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billion passionately without realizing that what Xiaomi really needs is not a new
logo, but an "attached" media fever. Everywhere, everyone is talking about
Xiaomi.

How brands respond to Doppelganger encounters is:
• Businesses use digital to monitor their brand posts for greater control.
• Identify and track your branded consumers. Instead of being passive to DBI,
we will observe and analyze to determine the cause and have optimal solutions.
• Developing and testing a new story, once DBI is defined, even in the early
stages, brand managers should look to create a new story to address DBI.
• Protect your brand from the threat of a DBI: we need DBI validation and after
validation, there will be viral marketing strategies that provide authentic brand
information.

3. Placement:
Have you ever wondered why your branded stores are located on the main

roads, why, not in a certain alley? In business, location is an important thing to
attract customers. Gucci fashion brand was born as the realization of the
aesthetic thinking of European aristocrats in the 20s of the last century.
According to the results announced by Kering (the parent group), Gucci
currently has more than 505 stores globally, providing more than 4000 products
to developed markets such as Norway, Sweden, Denmark, and Finland. For
nearly a century of struggle for survival, Gucci has always maintained its own
operating philosophy, cherishing and preserving the classic values of traditional

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craftsmanship, the heritage of the brand endures forever. Most of Gucci's stores
are located in large shopping centers and places with eye-catching locations that
make customers irresistible every time they stand in front of the store.

3.1. New retailers:
● How has digital impacted location?
New retail is a very interesting concept in the digital world. As before,
there will be an item or product that you want to buy, but it must be
placed somewhere else. It will take a long time to receive the goods
because of the geographical distance, not to mention the careful
packaging. Having a retail store is really necessary, it will be a bridge
between customers and the main product, avoiding them from feeling
lost. With retail stores that integrate digital technology, customers will be
more interested in what they learn and experience. The number of online
shoppers is increasing, having such digital retail stores will help them
have the most accurate information about products and will be marketed

thoroughly.

● Let's see how well Tesla has applied this concept. Tesla is currently one
of the largest automakers in the world and is rapidly expanding into Asia
and Europe. Many other traditional automakers are facing sales declines,
but Tesla, by contrast, is standing firm thanks to its differentiated retail
strategy. Regarding retail locations, Tesla has fewer retail locations than
other traditional companies but is managed by Tesla itself without the

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involvement of a third party. Next is retail space, often small in a
shopping center and only two or three in a showroom.
Finally, thanks to digital adoption and sales tools, Tesla's car sales only
take about 5 minutes to do, the fact that Tesla earns 70% from online
sales gives customers peace of mind and peace of mind, quickly when
making transactions.

3.2. Desktop manufacturing:
● Another concept mentioned in the article is that Desktop Manufacturing
is understood as the process of producing consumer products using labor
and machines, tools, combined with recipes or processing processes. The
gradual transition as technology evolves is from physical goods to digital
goods. The use of 3D printers to create a different product line than
before, when it has been fully optimized and much more economical.
Digitally shipped products save both time and money and give companies
greater control over the distribution process, so cutting out the middleman

is a very attractive prospect. A company can do this by posting digital
files of its products or product parts on a website for easy download or
possibly posting on a third-party website.

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● For example, NASA uses 3D printers to replace broken parts on
spacecraft while in space. This shows the high applicability of 3D printers
when being able to meet such practical needs. These things, are enough to
show us that nothing is irreplaceable, so cultivate your digital knowledge
every day, it will be a tool to help you in your career later. You see today
there are jobs where machines can replace humans, so if you don't try to
keep up with the world's optimization trends, chances are one day, your
business will fall into crisis.

4. Price:
The last factor is price. It is the amount a customer has to pay when they buy a
certain product. The price is a non-fixed quantity that will continuously change
from time to time as the company deems appropriate. The more businesses want

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to increase the value of the company, the more they must have a good, perfect
pricing strategy to help gain long-term profits. To have a good pricing strategy

is often very difficult and must carefully consider and calculate the production
costs and incurred costs of the product. Some of the factors when it comes to
pricing are: discounting, price setting, credit collection, and cash and credit
purchases. In addition, businesses can rely on competitive product prices and
the original price of products when manufactured to make informed decisions
about prices. This will attract customers to your product.
Therefore, every decision on pricing is extremely important to the business.
Today with the emergence of digital tools that have developed and help
businesses come up with more innovative pricing strategies, attract more
customers and are extremely novel such as:

4.1. Pay what you want (PWYW):
● PWYN is known as a pricing strategy that allows customers and
consumers to pay any price for a product they buy and possibly without
paying. Implementing this strategy will help sellers understand the needs
of the market, eliminating the disadvantages of conventional pricing.

● An example of a successful application of the PWYW strategy is the
Humble Bundle.
The Humble Bundle is known as a digital platform store that primarily
offers video games. Founded in 2010 by Jeff Rosen and John Graham
from the beginning they used a PWYW model that allowed users to pay
as much as they wanted for bundles of PC games. Most packages have an
additional bonus announced mid-term as an additional incentive for game

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purchases as users pay more, previous purchases automatically receive
those rewards. Revenue from this strategy will be shared between the
Humble Bundle store, the game developers, and charitable donations.
By the end of October 2014, participating developers had grossed more
than $100 million and by September 2021, the total charitable amount
raised by the Bundles exceeded $200 million across 50 different charities
(taken from en.wikipedia.org). However, this strategy also has many
downsides and not all businesses apply it successfully. Because letting
customers pay at will greatly affect revenue and cause financial instability
if the business is not strong enough. The application of PWYW should be
carefully researched, suitable for the product the company is trying to sell
and should propose an average price for buyers to refer to or only
implement the strategy when the new product is launched on the market,
take place during certain months of the year to capture the customer
experience.

4.2: Freemium
● Freemium pricing—a mix of the words pricing strategy that businesses use if they want to offer customers free
services in addition to paid options. (Patriotsoftware, 2019, Going the
Freemium Pricing Route, para1)

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● With freemium pricing, a business offers at least two levels of service:
paid and free. The free option usually has fewer features than the paid
option. Or, it may have an attraction (e.g. advertising or limited usage).

Premium options are optional, but they often offer additional features, a
better experience, or both.
● Freemium doesn't just apply to businesses that offer perpetual free and
paid options. It can also apply to companies that offer a free trial of their
service.
Businesses using a freemium pricing strategy hope to entice customers
with the free option, then convince them to upgrade to the paid version.
● Advantages of Freemium Valuation:
➢ No barrier to use, tends to lead to a large user base
➢ Reduce marketing costs and attract customers
➢ Free products tend to be more widely known and have a loyal following
● Spotify's story is also quite interesting when they launch two versions:
free and paid to serve the entertainment and relaxation needs of
customers. The product quickly became widely accepted with the feature
of recommending music in line with users' current music trends, allowing
users to manage playlists and follow their friends. They see this as a
successful step in directing users to the premium version of Spotify. But
the reality shows that, although the number of people who download
Spotify uses a lot, they do not pay to upgrade to the high version, not to
mention there are many competitors.
Increasing the number of paid Spotify subscribers is what the
development team wants. They have come up with strategies to improve
the quality of the product, making the paid version different such as no
interrupting ads, richer playlists, can be played directly without
downloading, there are many different interfaces… That way they
convince users that the premium version is worth it, they will see a clear
difference from the free version and don't hesitate to upgrade. With its
efforts, Spotify has achieved an amazing Freemium model conversion
rate of 26.6%. Out of 75 million monthly users, 20 million are paying for
the service.

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III. Discuss how companies can react to the changing of the digital
marketing environment.
To adapt to the current rapidly evolving Digital Marketing environment,
companies must also research, evaluate and innovate strategies on products,
prices, places and promotions. The SWOT analysis of the business will help
form better and more accurate 4Ps strategies.
Enterprises need to quickly absorb, grasp and inherit technological innovations
and apply them in the stages from production to post-purchase customer
analysis and evaluation. Using technology makes work more convenient and
easy to create an impressive image with customers.
Care and respect for customers' creativity. Customers are a very important part
of all businesses so they need to receive certain care and respect. When
businesses create trust with customers, they become close and loyal customers
to the business. Customers can be the ones who advertise the products and
services of the business to other customers, so we should pay special attention
to them.

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The use of measurement tools will help the company bring its products to
customers and understand their needs effectively. Undoubtedly, the company

will need forward-thinking, inquisitive employees to make the most of what
digital tools have to offer. Always encourage employees to learn more every
day, focusing on and keeping up with the changes of the world's digital
environment. Set up monthly training sessions for different departments. Google
recently offered a free $100,000 technology training course to every US
business that shows the importance of digital marketing. Learning does not just
stop at books or at a certain level, but it will go through everyone's life.
Materials and courses on social media platforms are now plentiful and
completely free, so don't let yourself fall behind the world.
Applying Digital Marketing is an important and sensitive part for businesses.
Businesses need analysis and selection to come up with the right and successful
strategies. In addition, we cannot deny the positive things that digital marketing
brings to us.

IV. Conclusion
Taking advantage of the achievements of science and technology and the
industrial revolution 4.0, companies and businesses are increasingly optimizing
their work and production processes to be able to reach customers in the fastest
way. In particular, for the marketing industry, digital tools have become
indispensable tools for every business to develop products for the community.
Not only that, digital tools influence the marketing mix strategy to create more
flexible changes when applied in practice.

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V. Reference
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