DMA001: Unit 5: Internet and the marketing mix

Study Unit 5: The internet and the marketing mix

This study unit focuses on the importance of digital branding and how the traditional
marketing mix is synonymous with digital marketing. When reviewing the product element
of the marketing mix, we identify how digital branding can support how brands are being
developed. This study unit discusses each element of the marketing mix and reviews the
implications of digital technology. Less focus is given to the promotional mix as we will
cover this with more focus in Study Unit 9.

OUTCOMES

Study Unit 5: Specific Outcomes

Study Unit 5: Assessment Criteria

GLOSSARY OF TERMS

Glossary of Terms

STUDY UNIT 5

1. Relevance
 2. What is the Marketing Mix?

3. Digital Branding

3.1 Success Factors for Online Branding: Brand Advocacy

3.2 Success Factors for Online Branding: Brand Identity

3.3 Success Factors for Online Branding: Online Brands

PRODUCT

4. Product in a Digital Marketing Context

4.1 Options for Varying the Core Product (online)

4.2 Options for Offering Digital Products

4.3 Options for Changing the Extended product

4.4 Conducting Research Online

4.5 Speed of New Product Development

4.6 Price in the Digital Marketing Context

DIGITAL MARKETING CONTEXT

5. Place, Channels and Distribution

6. Promotion and Social Media

7. People, Process and Physical Evidence

UNIT 5: CONCLUDE

Conclusion

Progress Check and Downloads

Lesson 1 of 21

Study Unit 5: Specific Outcomes

Study Unit 5:
Specific Outcomes

0:08

Voice over: Specific outcomes

Study Unit Outcomes

After completing this study unit, you should be able to:

Explain, in practical terms, the components of brand

equity.
Explain, in practical terms, the elements of the marketing
mix in an online context.

Explain, in practical terms, the services marketing mix for

an online organisation.

CO N T I N U E
Lesson 2 of 21

Study Unit 5: Assessment Criteria

Study Unit 5:
Assessment Criteria

0:14

Voice over: Assessment criteria

Assessment Criteria

The brand elements used to create and enhance brand

equity for an online organisation must be explained and
applied to an organisation.
Online branding success factors are used as a basis to
recommend a strategy to increase brand advocacy.

The product element is described in a digital context with

reference to online implications for a B2B and B2C
business.

The price element is critically evaluated in terms of the

main implications on digital marketing.

Place, channels and distribution can be described as

important components to be considered when
recommending the e-marketing mix.

The online service delivery key issues are discussed in

the context of people, process and physical evidence.

CO N T I N U E
Lesson 3 of 21

Glossary of Terms

Glossary of Terms

0:08

Voice over: Glossary of terms

These terms are mentioned in this unit.

Aggregators
An alternative term to price comparison sites or comparison search engines
(CSEs). Aggregators include product, price and service information,
comparing competitors within a sector such as financial services, retail or
travel. Their revenue models commonly include affiliate revenues (CPA), pay-
per-click advertising (CPC) and display advertising (CPM).

Brand advocate

A customer who has favourable perceptions of a brand and who will talk
favourably about a brand to their acquaintances to help generate awareness
of the brand or influence purchase intent.

Brand equity

The assets (or liabilities) linked to a brand’s name and symbol that add to (or
subtract from) a service.

Brand experience

The frequency and depth of interactions with a brand, which can be

enhanced through the internet.
Brand identity

The totality of brand associations, including name and symbols that must be
communicated.

Bundling

Bundling combines several product or service options into a package of

services, typically at a discounted price.

Commoditisation

The process whereby product selection becomes more dependent on price

than on differentiating features, benefits and value-added services.

Core product

The fundamental features of the product that meet the user’s needs.

Digital branding
Applying digital media and technology to create brand value for target
audiences.

Extended product

Additional features and benefits beyond the core product.

Long tail concept

This is a business strategy that allows companies to realise significant profits

by selling low volumes of hard-to-find items to many customers, instead of
only selling large volumes of a reduced number of popular items.

Mass customisation

A form of micro-segmentation, where firms use economies of scale enabled

by technology to offer variants of products to individual customers or groups
of customers (Pallant et al., 2020).

Virtualisation

The process whereby a physical company develops more of the

characteristics of a virtual organisation.
CO N T I N U E
Lesson 4 of 21

1. Relevance

The introduction of the Internet has brought

many opportunities and threats for the
marketer

0:45

Voice over: Relevance

Relevance
 “ If everyone is thinking alike, then somebody isn't thinking.”

General George Patton

It is almost certain that you have heard of the (extended)

Marketing Mix (product, promotion, price, place, people,
process and physical evidence) in the traditional marketing
sense, but this study unit will describe how the marketing
mix can be applied to the digital environment. We use the
marketing mix as a strategic framework for different
elements of an organisation’s product offering. The
introduction of the Internet has brought many opportunities
and threats for the marketer. As a marketer, you should also
consider online branding which is how online channels are
used to support brands that are the sum of the
characteristics of a product or a service as perceived by the
consumer.

We have spoken about the importance of relationships in

the digital world, and, therefore, we add an eighth element
to the marketing mix – partnerships. Today, this approach
is often referred to as co-marketing.

EXAMPLE
GoPro and Red Bull both have established
themselves as lifestyle brands. GoPro equips
athletes with adventures from around the world (to
capture stunts, moments, etc.); at the same time,
Red Bull uses its experience to run and sponsor
these events.

CO N T I N U E
Lesson 5 of 21

2. What is the Marketing Mix?

Marketing thinking is constantly evolving

and there has been a shift in emphasis on
the application of the marketing mix

1:31

Voice over: What is the marketing mix?

What is the Marketing Mix?

The marketing mix – widely referred to as the 4Ps of
Product, Price, Place and Promotion – was originally
proposed by Jerome McCarthy in 1960. In the 1980s the 4Ps
were challenged for not referencing the importance of
customer service. The result was that the mix was extended
to 7Ps, which includes three further elements (the service
mix) that better reflect service delivery: People, Process and
Physical evidence. Digital marketing affects all aspects of the
traditional and service marketing mix.

The elements of the marketing mix

Marketing thinking is constantly evolving, and there has

been a shift in emphasis on applying the marketing mix
toward developing relationship building. There are many
views shared by different writers but all underlying the shift
towards more relationship-oriented marketing due to
growing customer demands and increasingly complex
technology-driven trading environments. Companies and
customers engage in exchanges at all touchpoints leading to
value creation. This is an important concept to consider
when planning to strategically apply digital marketing tools
and techniques.

Digital branding, social media and technology provide many

new opportunities for the marketer:

to vary the application of the marketing mix

to develop new routes to delivering competitive and

differential advantage

to create new market positions

to build and service relationships in increasingly

innovative ways

to cut through the barriers of time and space and offer

continuous and instantaneous access to products and
services.

Digital marketing affects all aspects of the traditional and

service marketing mix, and in this study unit, we explore:

Reviewing opportunities for modifying

1 Product the core or extended product for
digital environments.
 Focusing on the implications for
2 Price setting prices in digital markets, new
pricing models and strategies.

Considering the implications for the

3 Place
distribution of digital marketing.

Exploring new promotional techniques

4 Promotion
in more detail in Study Units 8 and 9.

Review the principal ideas before

going into a more detailed discussion
People, process in Study Units 6, 7 and 10, where the
5 and physical focus is on how these mix elements
evidence relate to customer relationship
management and managing an
organisation’s digital presence.

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Lesson 6 of 21

3. Digital Branding

Branding is important online and offline as it

helps customers differentiate between
products and services

2:35

Voice over: Digital branding

Digital Branding
Branding is important online and offline as it helps
customers differentiate between products and services from
different manufacturers and producers. Branding assists
companies to set themselves apart from their competitors.
It is important to understand the fundamentals of branding.
A brand is far more than the name or logo associated with a
company or product. Traditionally, manufacturers and
producers develop their products and services into brands in
order to create unique market positions in the minds of their
customers (Jobber and Ellis-Chadwick, 2020).

From a manufacturer’s perspective, well-known brands

feature in product categories such as laundry liquids, soup,
cars and computers. However, all businesses can be
considered as brands, can apply branding principles to
differentiate their offering and may develop sub-brands for
different products and services.
Online and/or offline branding communicates what our
brand is all about. We can use our brand to communicate
certain characteristics about our brand or the image our
brand portrays. Most consumers like to associate
themselves with different brands either because the brand is
interesting to them or because it resonates with them.
Hence, when we engage with consumers online, we should
always try to encourage them to come back and engage with
the brand.

With an online presence, brands can communicate trust to

their consumers, just as they would offline. Consumers are
more likely to purchase a product produced by a brand they
know when shopping online.

When you are searching for a new laptop, and you are
looking on Takealot.com, you would often select a well-
known brand like Dell or HP compared to an unknown
brand because you are already taking the risk by purchasing
online - you do not want to take the risk of not getting the
product you want.

Positioning online brands requires marketers to think

creatively about a brand's traditional elements and consider
new elements. There is value to be gained, brands that can
get into the customers' minds contribute to brand equity.

There is a range of brand elements that apply to online and

offline branding to consider:

The internet and digital technologies have changed the

global brand landscape. Online brands have emerged and
become household names in a few years – for example,
Google, Amazon, eBay and Facebook. Digital technology
has also brought distinctive features to the online brand
experience (Morgan-Thomas and Veloutsou, 2013).

As discussed, an online brand is similar to its offline

counterparts in many ways but according to Morgan-Thomas
and Veloutsou (2013), the major difference is the context in
which the customer experiences the brand.
Online context tends to be:

Information-rich.

Dynamic.

Characterised by excessive information flows.

Technologically innovative.

CO N T I N U E
Lesson 7 of 21

3.1 Success Factors for Online Branding: Brand

Advocacy

It is not about the number of visitors to a

website but rather the quality of visitors to a
website

0:55

Voice over: Brand advocacy

Brand Advocacy
In Study Unit 1, we considered five classes of websites or
parts of sites that support different organisational goals.
Brand websites offer scope to achieve various marketing
goals, but it is important to recognise that all types of
websites, such as transactional sites, relationship-building
sites, portals and social networks, should seek to provide a
favourable brand experience.

Brand websites assist in achieving marketing goals, for

example from raising awareness of new products and
services, building relationships and customer retention.
Websites must also ensure high levels of involvement,
interactivity and a sense of control over the online
experience for the site visitor are more likely to be successful
than sites that do not offer such features.

It is not about the number of visitors to a website, but rather

the quality of visitors to a website as brand sites want to
attract brand advocates. Brand advocates are those
customers that talk positively about the company or brand,
creates awareness and often has some influence on
purchase intent.

CO N T I N U E
Lesson 8 of 21

3.2 Success Factors for Online Branding: Brand

Identity

Brand websites assist in achieving

marketing goals

0:44

Voice over: Brand identity

Brand Identity
It is important for brands to hold individual and unique
attributes, and as marketers, it is important to develop a
plan to communicate the key features of the brand identity.
Brand identity is more than just a name, it involves a brand
as:

A symbol (name, logo, symbols, slogans, and also any

physical representation: packaging, presentation).

A product (product attributes, quality, uses and users).

an organisation (innovativeness, vision, company culture,

social responsibility initiatives).

A communication (advertising, positioning, celebrity

endorsement, promotion, peer influence).

A servicescape and experience (service environment, site,

atmosphere, consumer feedback on experiences,
reputation).

CO N T I N U E
Lesson 9 of 21

3.3 Success Factors for Online Branding: Online

Brands

The word chosen to represent a brand can

influence consumer behaviour and if a buyer
chooses to engage with a brand

0:21

Voice over: Online brands

Online Brands
The word chosen to represent a brand can influence
consumer behaviour and if a buyer chooses to engage with a
brand. Therefore, in order to increase the likelihood that a
consumer will engage with a new brand, it should be easy to
pronounce and have interesting arrangements of syllables
and consonants so as to make the name easy to recall but
should not be too similar to other words (thereby causing
confusion with other brand names). Brand names must
attract a customer’s attention.

CO N T I N U E
Lesson 10 of 21

4. Product in a Digital Marketing Context

When we talk about the product, we are

talking about the characteristics of a
product, service or brand

0:37

Voice over: Product in a digital marketing context

Product in a Digital Marketing Context

When we talk about the product, we are talking about the
characteristics of a product, service or brand. When we
decide how to market the product, service or brand, we
need to conduct extensive marketing research to identify
what customers’ needs are and create products to meet
those needs.

There are two types of products:

a core product which refers to the main product

purchased by the consumer to fulfil their needs (i.e., the
car we purchase) and

the extended product refers to additional services and

benefits that are built around the core product (i.e., the
warranty provided on the car), both of which we need to
consider.

CO N T I N U E
Lesson 11 of 21

4.1 Options for Varying the Core Product (online)

When we talk about the product, we are

talking about the characteristics of a
product, service or brand

1:14

Voice over: Options for varying the core product

Options for Varying the Core Product (online)

For some companies, there may be options for new digital
products that will typically be information products that can
be delivered over the web.
Marketers should ask the following questions:

Can I offer additional information or transactional

services to my existing customer base?

Can I address the needs of new customer segments by

repackaging my current information?

Can I use my ability to attract customers to generate new

sources of revenue, such as advertising or sales of
complementary products?

Will my current business be significantly harmed by other

companies providing some of the value I currently offer?

Nike allows its website users to customise their Nikes

according to design and colour, which gets the consumer
more involved in the process. This would have been a very
difficult task to execute in-store. Bundling of products has
also become very popular, especially that of information-
based products, such as newspapers, books, music videos,
etc.

Digital technology also introduces options for mass

customisation of products, particularly digital products or
products that can be specified online. The internet has
provided a channel through which manufacturers can not
only sell personalised products but also use the internet as a
source of information for developing highly targeted
products.

CO N T I N U E
Lesson 12 of 21

4.2 Options for Offering Digital Products

When we talk about the product, we are

talking about the characteristics of a
product, service or brand

0:14

Voice over: Options for offering digital products

Options for Offering Digital Products

Publishers, TV companies, media owners and other
companies that can offer digital products such as published
content, music or videos now have great flexibility to offer a
range of product purchase options at different price points,
including:

A recurring fee is paid for goods and services.

This is a traditional newspaper or magazine
publisher revenue model, but subscriptions
Subscription
can potentially be offered for different periods
and at different price points.

Slightly different to subscriptions, a license is a

payment made for a defined period (usually a
Licensing year) for a pre-agreed range of services. Refer
to the Digital marketing insight 5.1 for further
discussion of subscription services

A fee for a single download or viewing session

Pay-per- at a higher relative price than the subscription
view service – for example, music products from
iTunes.

Different channels or content can be offered

Bundling as individual products or grouped at a
reduced price compared to pay-per-view.

Ad- There is no direct price set here. Instead, the

supported publisher’s main revenue source is through
content adverts on the site (CPM display advertising
on-site using banner ads and skyscrapers), a
fixed sponsorship arrangement or CPC, which
stands for ‘cost-per-click’ – more typical when
using search ad network publishing, such as
 Google AdSense, which makes a significant
contribution to Google’s revenue.

Another example is affiliate revenue.

Can you answer the following question?

Spotify (an online music streaming platform and audio streaming of podcasts,
books, meditation, news and other services) can offer customers the option to

subscribe to their premium music downloading service and their podcast service

for a lower amount than if each service was purchased separately. Which price

point is described here?

Pay per view

Bundling

Subscription

Add Supported content

Licensing
 SUBMIT

CO N T I N U E
Lesson 13 of 21

4.3 Options for Changing the Extended product

Organisations can use the Internet to offer

more value to their customers

0:51

Voice over: Options for changing the extended product

Options for Changing the Extended product

Organisations can use the Internet to offer their customers
more value, such as warranties, guarantees, testimonies,
information and assistance, etc. If we look at FNB for
example, on their website they offer consumers free demos
which consumers read when they need assistance with
certain things.

This is useful for FNB because they provide a step-by-step

approach to solving consumers’ problems which could result
in fewer calls to the Call Centre, and it is convenient for a
consumer because they can just go online and follow the
steps. They no longer have to go into a branch or speak to a
Call Centre agent for assistance. In simple terms, they can
solve their own problems.

A few examples of how marketers can extend the core

product online include:

Endorsements, Awards, Testimonials, Customer lists,

Customer comments, Warranties, Guarantees, Money-
back offers, Customer service and Incorporating tools
(calculators, etc).

CO N T I N U E
Lesson 14 of 21

4.4 Conducting Research Online

We can now make use of the Internet to

help us find out about consumers

0:20

Voice over: Conducting research online

Conducting Research Online

We can now make use of the Internet to help us find out
about consumers. Options for performing new product
development research online include:
Online focus group.

Online questionnaire survey Social media listening.

Customer feedback and support forums.

Web analytics.

CO N T I N U E
Lesson 15 of 21

4.5 Speed of New Product Development

Various companies like DSTV are always

inviting their website visitors to partake in
surveys

1:39

Voice over: Speed of new product development

Speed of New Product Development

Digital channels give instant access to target markets and
provide platforms which enable new products to be
developed more rapidly as it is possible to test new ideas
and concepts and explore different product options through
online market research. New products are being developed
faster and faster each day and companies need research in
order to determine whether the product will be a success or
not. Various companies like DSTV are always inviting their
website visitors to participate in surveys to enhance their
experience of the DSTV site.

Speed of New Product Diffusion

Downes and Nunes (2013) examined product diffusion by

looking at ‘big-bang disruptions’, and they suggested internet
fads could “infect the whole world in a matter of days”.
Products are moving through the market rapidly as more
options become available. Word-of-mouth communication is
vital because consumers have the ability to influence other
consumers.

The Video game Angry Birds was downloaded 24 million

times within a day of its becoming available.

Malcolm Gladwell’s book The Tipping Point (2000)

emphasised the importance of word-of-mouth
communication on the impact of the adoption rate of new
products, especially through the internet. He advises how
 marketers should help create a ‘tipping point’ for a new
product or service – the moment when a domino effect is
triggered, and an epidemic of demand sweeps through a
population like a highly contagious virus.

The Tipping Point explains the three simple principles that

underpin the rapid spread of ideas, products and behaviours
through a population:

THE LAW OF THE FEW T H E S T I C K I N E S S FA C T O R THE POWER OF CONTEXT

The spread of any new product or service depends on the initial adoption by
‘connectors’ who are socially connected and encourage adoption through
word of mouth and copycat behaviour. These connectors may use personal
blogs, email newsletters, and podcasts to propagate their opinions in an
online context.

THE LAW OF THE FEW T H E S T I C K I N E S S FA C T O R THE POWER OF CONTEXT

How glued we are to a medium? There are certain cross-category attributes

which are key drivers for product success:

Excellence – being perceived as best of the breed.

 Uniqueness – clear, one-of-a-kind differentiation.

Engagement – fosters emotional involvement.

Cost – perceived value for money

THE LAW OF THE FEW T H E S T I C K I N E S S FA C T O R THE POWER OF CONTEXT

Products and behaviours spread far and wide when they fit the physical,
social and mental context into which they are launched.
Marketing Opportunity for New Products

The long tail concept is useful when considering products

and market opportunities. It can be applied to the relative
popularity of a group of websites, web pages, or products on
an individual site since they tend to show a similar pattern of
popularity. A small number of sites (or pages within sites) are
very popular (known as ‘the head’, which may account for 80
per cent of the volume), and a much larger number of sites
or pages that are less popular individually but still
collectively important.

Zipf’s law, showing decrease in popularity of items within an ordered sequence

CO N T I N U E
Lesson 16 of 21

4.6 Price in the Digital Marketing Context

Some consumers assume that everything

available online is cheaper, but this is not
always the case

2:52

Voice over: Price in the digital marketing context

Price in the Digital Marketing Context

The price variable of the marketing mix refers to an
organisation’s pricing policies, which are used to define
pricing models and set prices for products and services,
ultimately differentiating a brand.
 The price and the product are often closely related because
the pricing will depend on the range of products available
online and the stage the product is in - its product life cycle
(PLC).

Some consumers assume that everything available online is

cheaper, but this is not always the case. This is because if we
make our product drastically cheaper online, we may offer
less customer service to reduce the cost, which could have
drastic effects.

The main implications of the internet for the price aspect of

the mix, which we will review in this section, are:

Increased price transparency and its implications on differential pricing

Consumers have increased access to pricing information online. A supplier

can use the technology for differential pricing (for customers in different
countries, for example). Pricing online must consider the concept of price
elasticity of demand, a measure of consumer behaviour based on economic
theory that indicates the change in demand for a product or service in
response to changes in price. Price elasticity of demand is determined by the
product's price, availability of alternative goods from alternative suppliers
(which tends to increase online) and consumer income.
Price uncertainty

Closely connected to price transparency, price uncertainty influences when

and how consumers buy. When unaware of the market price of an item,
shoppers use information sources to develop knowledge of the degree of
price variability before making their purchase decisions. When setting
prices to attract customers, variability is a pricing tactic used to reduce
uncertainty and any potential impact of making an incorrect purchasing
decision.
Variability in pricing can mean:

High variability: Uber uses surge pricing based on demand, when

demand for ride-sharing services is high, then prices are high but when
demand is low prices fall.

Low variability: everyday low pricing (EDLP). This approach is used by

discounters in many consumer-facing industries, for example, FlySaAir.
Innovative pricing approaches

The internet allows for new pricing options. Different pricing mechanisms
which have been used effectively online include:

Forward auctions are items purchased by highest bid made in bidding

period.

Reverse auctions are items purchased from lowest-bidding supplier in

bidding period.

Offer is a commitment by a trader to sell under certain conditions.

Bid is a commitment by a trader to purchase under certain conditions.

Alternative pricing structure or policies

Different types of pricing may be possible on the internet, particularly for

digital, downloadable products. Pricing options that could be varied online
include basic price, discounts, add-ons and extra products and services,
guarantees and warranties, refund policies and order cancellations terms.

CO N T I N U E
Lesson 17 of 21

5. Place, Channels and Distribution

The place variable of the marketing mix

refers to how the product is distributed to
customers

0:37

Voice over: Place, channels and distribution

Place, Channels and Distribution in a Digital Marketing

Context
The place variable of the marketing mix refers to how the
product is distributed to customers. In an online context,
thanks to the ease of navigating from one site to another,
 the scope of place is less clear since place also relates to
promotion and partnerships. Sites can extend their reach by
linking with other sites.

Many publishers make partnerships with online stores like

Amazon and Takealot.com where their books are sold, so
the Internet has added another channel that the publisher
can use to react to the consumer.

The main implications of digital for the place aspect of the

mix reviewed in this section are:

Place of purchase

We need to be concerned with the issues associated with distribution,

logistics and the point at which the sale takes place. When a brand like Nike
wants to sell their products online, and they want to partner with an online
retailer, they need to think about the reach which that partner has online –
i.e., how many consumers they can reach, the richness of information, the
depth or detail of information available online and the affiliation, the selling
interest of the online partner, and what they want to achieve. Remember
that if you are planning to offer your product outside your home country,
you need to consider language and culture. For example, when visiting the
Nike website from South Africa, it identifies that you are visiting the site from
outside the USA and takes you to the page where you can select your
language and currency.
New channel structures

As mentioned before, by using the Internet, we could remove members from

the channel (disintermediation), so we either sell directly, add new
intermediaries to reach more consumers (reintermediation) or make better
use of online intermediaries (counter medication). For example, many
airlines like SAA have collaborated with TravelStart to access more
consumers and to ensure that consumers do not switch to low-cost airlines
like Kulula.

Channel conflicts

When we utilise an Internet channel there is a chance that channel conflicts

will occur because more people are involved in the process. For example, the
offline Avon sales representatives may feel threatened because consumers
can purchase the Avon products online, making their roles obsolete. When
we make use of different channels to sell our products, we need to ensure
that we evaluate the effectiveness of these channels on a regular basis.

Virtual organisations

Virtual organisations use technology to allow them to operate without clearly

defined physical boundaries between different functions. Most companies
do have some aspect of virtualisation whereby some aspects may be virtual
and others not. For example, virtual computer repair companies can repair
your computer without a technician coming to you or you going to the
technician. Instead, these technicians access your computer remotely, with
your permission, and repair your computer at your home.

REVISION EXERCISE

Research and relate three actual incidences where new channel

structures were created. Discuss how the change improved the
channel structure.

Tick the box when you are ready to see the answer.

I have done the exercise! Show me the

answer.

Complete the content above before moving on.

Did you provide an example of reintermediation,

disintermediation and countermediation? If you have discussed
these examples, you are correct!

CO N T I N U E
Lesson 18 of 21

6. Promotion and Social Media

The internet and digital marketing

techniques are highly important and have
significant implications for marketing
communication

1:33

Voice over: Promotion and social media

Promotion and Social Media in a Digital Marketing

Context
The promotion variable of the marketing mix refers to how
marketing communications are used to inform customers
and other stakeholders about an organisation and its
products. The internet and digital marketing techniques are
highly important and have significant implications for
marketing communication planning, and for this reason,
digital promotions are covered in depth in Study Units 8 and
9. In this chapter, the aim is to briefly outline the core
components of promotion.

Regarding promotion, we need to consider all our

communications with customers and other stakeholders to
inform them about the product and the organisation. We
can use different aspects in the promotional mix, which
shows the different methods we can use to communicate
with our consumers.

On YouTube, companies can advertise for five seconds

before viewing the requested video, and if consumers skip
the video, the company does not have to pay for the
advertising.

Here are some different approaches for looking at how the

internet can be used to vary the promotion element of the
mix:
 1. Reviewing new ways of applying each of the elements of
the communications mix – such as advertising, sales
promotions, PR and direct marketing.

2. Assessing how the internet can be used at different

stages of the buying process.

3. Using promotional tools to assist in different stages of

customer relationship management.

The promotion element of a marketing plan also requires

three important decisions about investment for the online
promotion or the online communications mix.

1. Investment in site promotion compared to site creation

and maintenance.

2. Investment in online promotion techniques in

comparison to offline promotion.

3. Investment in different online promotion techniques.

CO N T I N U E
Lesson 19 of 21

7. People, Process and Physical Evidence

The place variable of the marketing mix

refers to how the product is distributed to
customers

0:30

Voice over: People, process and physical evidence

People, Process and Physical Evidence in a Digital

Marketing Context
People, process and physical evidence are often grouped
together and referred to as the services marketing mix.
 Online there are two distinct considerations when looking at
the service elements of the marketing mix.

1. The digital potential of the online service mix – the

extent to which each of the service elements offers new
potential to vary the online offer.

2. Service disruptors are new types of services business

that have altered how we do things.

PEOPLE PROCESS PHYSICAL EVIDENCE

This relates to how the organisation’s staff interact with consumers and other
stakeholders during sales (pre-and post-sales). This is an important aspect of
selling our product online because people provide customer service.
For example, South Africa’s most popular shopping website is Takealot
because of the excellent customer service offered to consumers.

It is important to look inwards at staff and peer-to-peer relations and manage

the service and quality of inbound communications. Organisations must
devise plans to accommodate the quality of inbound communications, which
is shown in the five stages.

TAKEALOT.COM TAKEALOT.COM

Takealot.com: Online Shopping | SA's leading online store

 Takealot.com: Online Shopping | SA's leading online
store
South Africa's leading online store. Fast, reliable delivery to your door. Many ways to pay.
Shop anything you can imagine: TVs, laptops, cellphones, kitchen appliances, toys, books,
beauty & more. Shop the mobile app anytime, anywhere.
UNDEFINED TAKEALOT.COM 

PEOPLE PROCESS PHYSICAL EVIDENCE

this refers to the methods and procedures organisations use to achieve all
marketing functions. The idea is to ensure the process is as simple and user-
friendly as possible.
For example, when consumers visit the OUTsurance website and request a
quotation, they can select which method OUTsurance should use to contact
them and what time suits them.

OUTSURANCE

Home Page
Home Page
 UNDEFINED OUTSURANCE 

PEOPLE PROCESS PHYSICAL EVIDENCE

This refers to the tangible expression of the product and how it is used. The
physical aspect in terms of the Internet marketing mix would be the
experience the consumer had on the website: could they navigate easily, did
the graphics load, will your website be able to handle the large traffic volume
when there is a promotion?

REVISION EXERCISE

Research BOS Tea and demonstrate your understanding of the e-

marketing mix and how Bos has used the Internet to vary the
marketing mix regarding each element. Provide practical
application relating to BOS Tea to show your understanding.

Promotion.

Price.

People.

Process.
 Physical evidence.

BOS SOUTH AFRICA

BOS Online Store - Ice Tea, Rooibos Tea, Sports Drinks,

Functional Shots | BOS South Africa
NEW FLAVOURED ROOIBOS TEA SHOP NOW CONTACT US BOS refers to the local South
African saying, "GO BOS", meaning: to go wild but in a fun way. We appreciate positively
wild people, subscribe wholeheartedly to the idea of surprise and delight and encourage
all to find unexpected feel-good fun.
READ MORE BOS SOUTH AFRICA 

Tick the tick box when you are ready to view the answer.

I have done the exercise, show me the

answer!
 Complete the content above before moving on.

ANSWER

Promotion: BOS Tea has used social media advertising and film
advertising to promote their different flavour teas. A previous
campaign incorporated a vending robot to promote their tea.

Price: BOS tea offers the same pricing online and offline in stores.

People: BOS recruits staff to fulfil digital roles to support their

website and e-commerce functionalities. The company's culture is
described on its website and shown through its online presence as
being innovative and promoting diverse cultures through its
products.

Process: Companies need to become customer-focused online. The

process elements also look at how the interaction with the
customer is managed online. BOS offers online support for
customers that require assistance.

Physical evidence: The physical evidence online looks at the

quality of the website and the experience with any staff that
customers may have, such as contact centres. The BOS website is
vibrant and interactive. It is easy to find information on the website.
CO N T I N U E
Lesson 20 of 21

Conclusion

Conclusion

0:30

Voice over: Conclusion

Conclusion
From this study unit, it is evident that there are various
aspects that the marketer needs to consider. Branding has
been explored from a traditional and digital perspective,
highlighting key considerations for digital markets and brand
managers. Each of the established elements of a brand
offline (e.g., domain, value, assets, heritage) has been
considered as to how they relate to the online world. We
then took a look at the marketing mix in the digital context.
The Internet can be used for a variety of aspects, but we
should always ensure that we are using it correctly (i.e., the
right price, right promotion, etc.) in order to reach our
intended consumers and to build on the brand image.

CO N T I N U E
Lesson 21 of 21

Progress Check and Downloads

You have come to the end of this study unit. It is time to check if
you covered all the content and achieve the learning outcomes
of the unit

0:18

Voice over: Progress check and questions

Progress Check
Tick the following boxes before moving on:
 You have covered all the sections in the
study unit.

You have attempted the revision exercises.

If you struggled to answer the questions in

the exercise, you have gone through the
content again.

Continuous Assessment Activities (CASS):

As you work through each study unit you will find mini assessment activities called CASS
activities (continuous assessment). The CASS activities help you to reflect on and engage with
the material that is being covered in an interactive way. Go ahead and complete each CASS
activity as you study and receive immediate feedback.

You've reached the end of unit 5.

Have a look at the CASS activity questions below. To see the recommended or guided
answers, click on the question mark('?') at the bottom-right of the activity. You can export
your answers, together with the guided answers, at the end of the activity by completing all of
the questions.
 What would you like to do?

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DMA001B Study Unit 5.pdf

26.3 MB

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