Table of content

I. INTRODUCTION............................................................................................................................................2

1.1 Overview of changing in digital world......................................................................................................2

1.2 Definition of marketing mix.....................................................................................................................3

1.3 How digital tools are changing elements of marketing mix.....................................................................4

II. HOW DIGITAL TOOLS ARE CHANGING MARKETING MIX..............................................................................6

2.1. Product.....................................................................................................................................................7

2.2. Promotion................................................................................................................................................ 9

2.3. Place.......................................................................................................................................................11

2.4. Price....................................................................................................................................................... 12

III. Suggestions for companies to react towards the changing of digital marketing...................................14
I. Introduction.
The digital revolution began in the late 1950s and 1970s as the evolution of technology
from mechanical and analog conversion to digital. The advent of digital technology has also
changed the way people communicate with the present through computers, mobile phones and
the Internet. This revolution led the development of the information and communication age of
Marketing. From 1950 to 1960, many governments and other organizations used digital
technology. Thanks to the great development of the internet and technology, there has been an
explosion of big data for sellers. Through online product reviews, social media, and purchase
history data, there is a need for methods capable of making sense of this volume of data and the
evolution of data science as a profession. Karma. From such data can be seen the targeting of
individual consumers, and advertising on mobile phones or digital media is becoming more and
more popular.
Marketing Mix model (marketing mix) or Marketing 4P model must be a familiar concept
to businesses in general and especially to marketers in particular. With the current era we know
Marketing Mix with 4Ps, 7Ps, .. the breakthrough of technology in recent years, Digital Marketing
has gradually asserted its position and effectiveness in the field of marketing. Generally speaking.
In the era of technology with the explosion of the 4.0 revolution, the old forms of Marketing
have gradually been developed and replaced by Digital Marketing. Basically, the term Digital
Marketing refers to marketing and promotion through electronic media. It uses channels
and strategies that empower an agency to execute and test digital marketing campaigns. Thanks
to the 4P model combined with other popular marketing strategies, the marketing department in
the business can easily reach the target customer group as well as interact with loyal customers
in the field in an effective and professional manner. more professional. business areas. From
there, grasp the psychology and needs of customers better.

Marketing and promotion through electronic media

 Digital Marketing Mix is a marketing mix strategy using electronic media and tools. It is
the fusion of Marketing Mix models (4Ps or 7Ps) with online marketing channels such as internet,
search engines and social networks, etc.
The Digital Marketing Mix is basically the same as the Marketing Mix. It is simply the
adaptation of price (Price), place (Place), product (Product) and promotion (Promotion) to the
digital marketing landscape. Of course people also have
1.1. Overview of changing in digital world.
When we talk about change in the digital world, we think of the huge role digital
transformation plays in the world but no, digital brings us both benefits and harms. Technology
can help make our world fairer, more peaceful, and more just. Digital advances can support and
accelerate the achievement of each of the 17 Sustainable Development Goals – from ending
extreme poverty to reducing maternal and infant mortality, to promoting farming sustainable
cooperation and decent work, as well as achieving cultural inclusion. But technology can also
threaten privacy, erode security and fuel inequality. They have implications for human rights and
human self-determination. Like previous generations, we - governments, businesses and
individuals - have choices about how we harness and manage new technologies. Digital
technology has grown faster than any innovation in our history - reaching about 50% of the
developing world population in just two decades and transforming society. By increasing
connectivity, including financial inclusion, access to commerce and public services, technology
can be a great balancer.
For example, in the medical field, pioneering AI-powered technologies are helping to
save lives, diagnose diseases, and extend lifespans. In the learning environment, open virtual
learning applications so that students can exchange between teachers and students more
conveniently.

However, the unconnected remains cut off from the benefits of this new era and still
lags further behind. Many of those left behind are women, the elderly, people with disabilities or
ethnic or linguistic minorities, indigenous groups and residents in poor or remote areas.
Connection speeds are slowing down, even reversing between some constituencies.
For example, globally, the percentage of women using the Internet is 12% lower than that of
men. While this gap narrowed in most regions between 2013 and 2017, in the least developed
countries it widened from 30% to 33%. (According to the family newspaper).

1.2. Definition of maketing mix.

Marketing mix (marketing mix) is defined as a marketing method that combines certain
elements effectively so that a business achieves its goals in business (earning profits, creating
prestige). brand signal…). Those factors include 4P (Price – Product – Promotion – Place) or 7P
(4P + People + Process + Physical Evidence). Source: Fiexmarketing page.

Price: refers to the value that is put for a product. It depends on costs of production,
segment targeted, ability of the market to pay, supply - demand and a host of other direct and
indirect factors. There can be several types of pricing strategies, each tied in with an overall
business plan. Pricing can also be used a demarcation, to differentiate and enhance the image of
a product.

Product: refers to the item actually being sold. The product must deliver a minimum
level of performance; otherwise even the best work on the other elements of the marketing mix
won't do any good.

Place: refers to the point of sale. In every industry, catching the eye of the consumer and
making it easy for her to buy it is the main aim of a good distribution or 'place' strategy. Retailers
pay a premium for the right location. In fact, the mantra of a successful retail business is
'location, location, location'.

Promotion: this refers to all the activities undertaken to make the product or service
known to the user and trade. This can include advertising, word of mouth, press reports,
incentives, commissions and awards to the trade. It can also include consumer schemes, direct
marketing, contests and prizes.

For example: We sell 1 shirt for $165 where 60$ is the price we import from the factory,
5$ for subsidy, the target segment can go up and down due to high or low consumption market
and from Then we can consider creating good discount codes for the product to sell well.
1.3. How digital tools are changing elements of marketing mix.

In today's social life, people are too familiar with the word "digital transformation". We
have adapted to the change of digital transformation propagated by the media. For Vietnam, this
is the process of changing the business model from traditional to digital. Based on new
technology applications (Big Data), Internet of Things (IoT), cloud computing (Cloud)…. To change
the operating method, leadership, implementation process, and culture of the enterprise.
Through digital transformation, enterprises reduce operating costs and reach customers in the
long run, management department can report timely and optimize work productivity for
employees…This makes increase work efficiency and business rankings also become higher.
Along with digital transformation, the way of communication and marketing is also changing day
by day. In the period of strong development of information technology and internet, small and
medium-sized enterprises face many difficulties in competing with large corporations when they
always follow the direction of traditional business and are at risk of being eliminated from the
industry. . So relying on information technology and Digital Marketing is something everyone
has, has and will do right now. Looking back at the process of media formation and development,
starting with the first advertising medium such as TV, radio, flyers, newspapers, billboards, etc.
Now, businesses have many ways to approach customers such as: website, email, mobile
messaging or social networks... Many new Marketing tools appear means higher ability to reach
out to customers, deliver stronger viral messages and increase the level of interaction between
Marketers and customers. Marketing must be based on the market base, which markets and
customer tastes change constantly. Therefore, each different period has different forms of
communication and at the present time Marketing Online is the most optimal path. Online
marketing is vital and important for a business today as the Internet is becoming one of the most
used tools. More and more people are logging on to the web to perform their daily activities,
including purchasing goods and services. (Sourch: Gobranding page).

Example: “Internet users now make up 57% of the global population. On average, people
spend 6 hours 42 minutes online every day. By 2021, it is expected that 73% of all eCommerce
sales will come from mobile devices.” 76% of social media users prefer to read customer reviews,
comments and posts when choosing to use a product or service. 86% of young people reviews
and comments of previous customers are considered a measure of brand trust. On top of that,
user-generated videos on YouTube get 10x more views than brand-produced content. (Sourch:
Cafeland.vn).
II. How digital tools are changing marketing mix.

The rise of the internet and the proliferation of digital, not just as a technology, but as a
media format, have had some profound and unexpected effects on 21st-century life. While
everyone expected that digital technology would make things faster what few people correctly
predicted was the social impact that digital media, combined with online connectivity, would
have.

When it comes to marketing, going digital has had massive consequences. Now
properties of digital media such as more accurate metrics, combined with interactivity, have
created whole new marketing opportunities. So, there’s no doubt that digital technology can play
a powerful role as a marketing tool.

One of the first places where digital transformation influences marketing is the funnel, a
traditional concept that marketers use to map out the actions potential customers make, taking
a multi-stage journey that finally results in committing to an actual purchase.

Before the advent of digital technologies, the marketing funnel was straightforward and,
in some ways, inviolable. The five stages include:

 Awareness – the stage where consumers first realize that you offer a product or service
they may be looking for.
 Interest – when a shopper does further research to see whether your business meets
their needs.
 Consideration – they are now taking a serious interest.
 Intent – when they start building towards a decision in a business's favor because they
feel they need to product or service.
 Decision – a consumer is converted into a customer after making a purchase.

At nearly every state, in a pre-digital marketing world, a business could only create
marketing materials and then hope for the best. An intervention was only possible if an informed
sales person was there to engage with a potential customer directly.

Due to digital transformation, these steps now gives a business a much greater amount
of control in the process giving marketers two invaluable new tools: multi-stage interactivity and
analytics.

2.1. Product
 Creating a marketing campaign starts with an understanding of the product itself. Who
needs it, and why? What does it do that no competitor's product can do? Perhaps it's a new
thing altogether and is so compelling in its design or function that consumers will have to have
it when they see it. The job of the marketer is to define the product and its qualities and
introduce it to the consumer. Defining the product also is key to its distribution. Marketers need
to understand the life cycle of a product, and business executives need to have a plan for
dealing with products at every stage of the life cycle. The type of product also dictates in part
how much it will cost, where it should be placed, and how it should be promoted. Many of the
most successful products have been the first in their category.

For example: Apple was the first to create a touchscreen smartphone that could play
music, browse the Internet, and make phone calls. Apple reported total sales of the iPhone to
be $71.6 billion in Q1 2022. In 2021, Apple hit the milestone of 2 billion iPhones sold.

2.1.1. Customer co-creation

Co-creation is a marketing strategy based on consumer values. Customers use different

forums to share ideas and problem faced and their knowledge for product improvement. This in
turn, creates an additional value to the product. Personalized experience and loyalty to the
product increases its value. This also affords an opportunity to the manufacturer to earn higher
profits.

Some consumers do not buy any product nor use any service, but are still adding value
to them. On various social networking sites (Facebook, Twitter, Instagram), consumers have
share their experiences of products and services they use. They also provide solutions to
problem faced by consumers. This way, consumers add value to product and services without
being in touch with companies. In his keynote address at Gartner CRM Summit, Paul Greenberg
gave the example of Threadless T-shirts. Customer places customized T-shirt design on a social
website that is voted by site visitors and the winner design goes for sale on website. “We no
longer live in the business ecosystem, we live in a customer ecosystem,” Greenberg said. “So you
have to provide value and values to customers.” One can therefore, conclude that each customer
wants personalized experience regardless of value of intended product. It is left to the
companies to get to the best conclusions. In other words, products and services are now valued
by customers.

The trick is that each customer wants a personalized experience regardless of their
value. Companies have to figure out how to do this with millions of customers. Some are giving
them the tools to own/run their own customer experience. In other words the products and
services are now valued by customers.

For example: The global response to the Unilever platform has been strong, with the
company receiving more than 1,000 proposals in the first half of 2012. This approach has also
helped develop a more open culture: now Today, more than 60% of Unilever's research
projects involve external collaboration.

Unilever's co-creation approach reflects the value of open innovation and shows
potential uses of community sourcing to solve problems - even complex problems that require
expertise. technical knowledge and expertise.

2.1.2. Sharing economy.

An economic system based on sharing underused assets or services, for free or for a fee,
directly from individuals. In the so-called terms collaborative consumption, the sharing economy
or the peer economy, owners rent out something they are not using, such as a car, house or
bicycle to a stranger using these peer-to-peer services. The company typically has typical style of
rating or review system so people on both sides of the transaction can trust the other. With the
popularity of these services, many people don’t need to buy when they can rent from others.

Sharing economy examples:

The sharing economy is being developed in all sectors as you can see from this list of sharing
economy companies:

 Transport: car sharing (Grap), renting between individuals, shared transport vehicles
(Be);
 Food: catering (ShopeeFood, GoFood);
 Varied equipment: sale or purchase of second hand items (Amazon, chomuabandocu);
  Clothing: renting between individuals, selling or buying second hand clothing (Vinted,
shop 2hand);
 Assistance services between individuals: skills, shopping, childcare;
 Culture and education: tutoring.

2.2. Promotion.

The goal of promotion is to communicate to consumers that they need this product and
that it is priced appropriately. Promotion encompasses advertising, public relations, and the
overall media strategy for introducing a product. Marketers tend to tie promotion and
placement elements together to reach their core audiences. For example, In the digital age, the
"place" and "promotion" factors are as much online as offline. Specifically, where a product
appears on a company's web page or social media, as well as which types of search functions
will trigger targeted ads for the product.

For example: The Swedish vodka brand Absolut sold only 10,000 cases of its vodka in
1980. By 2000, the company had sold 4.5 million cases, thanks in part to its iconic advertising
campaign. The images in the campaign featured the brand's signature bottle styled as a range of
surreal images: a bottle with a halo, a bottle made of stone, or a bottle in the shape of the trees
standing on a ski slope. To date, the Absolut campaign is one of the longest-running continuous
campaigns of all time, from 1981 to 2005.

2.2.1. User generated content.

In marketing, user-generated content (also known as UGC or consumer-generated

content) refers to content related to your brand that’s created by someone who’s not an
official representative of your business. It could be a social media update, a review, a video,
a podcast, or a number of any other types. If it involves your brand, and none of your
employees or affiliates created it, it’s user-generated content.

For example: Apple's #ShotoniPhone campaign is a campaign to change camera quality and satisfy
Apple's customers. The company has come up with a great way to make things right. Apple realized that their
customers weren't satisfied with the camera's average performance in low light, so they launched a campaign
called "Shoot on iPhone". The company wants to redeem this lost trust and bring attention back to what makes
the iPhone special: its ability to take great photos. Apple gave a lot of importance to the campaign. Pro users
took low-light photos with their iPhones, then posted them online for others to see on Youtube under “Shot on
iPhone.” This campaign mainly showcases some amazing everyday images that can only be taken with Apple's
amazing lens - iPhone Camera.

2.2.2. Doppelganger brand.

Developing an appealing and distinctive brand image is an important aspect of any firm's
product strategy, and also helps differentiate its offerings from those of its competitors. Now,
since few products have really large differences in terms of tangible features, most branding
efforts today focus on more intangible features and try to give their brands an emotional appeal.
While these appeals are attractive to some customers, many just ignore them and a few may
actually dislike them. Now, in the past, if you disliked the brand image, you would probably try to
avoid the brand and you might share your disdain with your friends and family. However, today,
with the democratization of new digital tools, you can do a lot more using digital design
software, digital cameras, and digital editing programs combined with the Internet, you can
actually remix or create your own version of a brand that you find offensive. This is the basic idea
behind a doppelganger brand image. Now the word doppelganger is really quite interesting. It's a
word that is German in origin, and actually a combination of two words, doppel, which means
double and ganger, which means walker. Thus in essence, a doppelganger is a double walker.
This term developed in the late 1700s, and it was based on the belief that people have an alter
ego that looks like them, but is ghost-like in nature, and if they encountered this doppelganger
face-to-face, bad things will happen. Likewise, a doppelganger brand image is an alter-ego of a
brand that is negative in nature. Now, let's take a look at a few examples. First of all, the FUH2
campaign. This creative viral Internet campaign began back in 2008 in response to General
Motors marketing of the Hummer SUV. Perhaps, you remember this vehicle. In the mid 2000s,
General Motors tried to position this brand as the ultimate four-wheel drive vehicle, capable of
taking on any challenge and use the slogan, "Like nothing else." The FUH2 campaign crafted a
very effective doppelganger brand image that focus not just on the brand itself, but also the
owners of Hummers, which were portrayed as jerks, who cared little about the environment by
driving this huge gas-guzzler during the height of the Gulf War. Second, the new Pepsi logo. Pepsi
introduced a new logo back in 2009. They paid a famous design firm a million dollars to create
this new logo, which as you can see, is really just a modification of its prior logo, not much
different. Nonetheless, this new logo was heavily criticized by several Internet blogs as being a
waste of money. In addition, several graphic artist created their own doppelganger versions of
this logo to represent an obese man as a means of protesting against Pepsi's effect on our health.
This doppelganger campaign quickly became an Internet meme and increased attention of
negative consequences of drinking Pepsi. Third and finally, United Airlines. In 2017, a passenger
on a United Airlines jet was forcefully removed from the plane, which was at that time sitting at
the Chicago Airport, because a flight attendant asked him to give up his seat and he refused.
Another passenger captured this incident on video and posted on social media, and it became a
huge sensation. As you can see, this video was quite disturbing and shows the man, who was a
medical doctor, screaming wildly as he's being dragged off the plane by airport police. The next
day, the United Airlines CEO released a statement on social media in which he said that this
passage was re-accommodated. This incident and the statement that followed attracted
substantial criticism and a large number of doppelganger brand images that reflected this
incident in a negative sense, both in terms of pictures and also words. Now, let's take a look at
our definition. A doppelganger brand image is a collection of disparaging images and stories
about a brand that are being circulated in popular culture by a loosely organized network of anti-
brand activists, bloggers, and opinion leaders. These doppelganger brand images are usually
focused on well-known brands that are viewed as lacking in authenticity and trying to create a
false or misleading emotional appeal through their promotional activities. Now, let's take a
deeper dive. There are lots of interesting issues surrounding the doppelganger brand image. For
the purpose of this discussion, I'll focus on three issues in particular. First of all, what motivates
someone to create a DBI? Creating a doppelganger image such as the FUH2 campaign, certainly
takes lots of time and energy. So why would someone do this? Typically, these efforts are
motivated by the perception that a brand is being inauthentic by claiming to be something that is
not or disguising its true nature or effect. This was the motive behind the FUH2 campaign, which
was a result of anger and frustration that people felt against General Motors, and how they tried
to portray the Hummer as a vehicle that could conquer the world, but not acknowledging the
negative impact it had on our global environment due to its poor gas mileage. Second, what
types of brands are most susceptible to a DBI? Typically, most doppelganger images are focused
against large, well-known brands. These brands have a high degree of awareness and familiarity,
which means that their business practices are more likely to come to the attention of anti-brand
activists. In addition, doppelganger campaigns targeted against these bigger brands are likely to
get more attention for their creators compared to those focused against small brands. Thus,
Walmart has several anti-branding doppelganger initiatives aimed against it, while Target has far
fewer. For example, there are dozens of people of Walmart viral videos floating around, they get
millions of views, but there are a few, very few people of Target videos. Third, where are DBI
likely to be found? Now, most DBIs are created as a form of individual protest and often located
on an individual's blog, Twitter account, or Facebook page. Now, sometimes these individual
accounts are picked up by a larger digital media outlet such as Reddit, Digg, BuzzFeed, or even
more traditional news channels. For example, Pepsi's DBI was initially posted on his creator's
blog, which at the time had very few followers, but was popularized on BuzzFeed in a feature
called logos that looked like other things. This posting quickly received over 300,000 views. DBIs
can also be found on websites such as Adbusters that are dedicated towards creating DBI for a
wider, variety of brands. So for example, on Adbusters, you'll see DBIs against McDonald's,
Starbucks, and Calvin Klein, just to name a few. Finally, there are a number of brand specific DBI
initiatives tried against specific brands. For example, Walmart has over a dozen websites
dedicated against it, including the WalmartSucks.org. Now, I just want to point out that I shop at
Walmart all the time, I love Walmart. I'm just reporting this, I'm not endorsing it.
2.3. Place.

Place is the consideration of where the product should be available, in brick-and-mortar

stores and online, and how it will be displayed. The decision is key: The makers of a luxury
cosmetic product would want to be displayed in Sephora and Neiman Marcus, not in Walmart
or Family Dollar. The goal of business executives is always to get their products in front of the
consumers who are the most likely to buy them. That means placing a product only in certain
stores and getting it displayed to the best advantage. The term placement also refers to
advertising the product in the right media to get the attention of consumers.

For example, the 1995 movie GoldenEye was the 17th installment in the James Bond
movie franchise and the first that did not feature an Aston Martin car. Instead, Bond actor
Pierce Brosnan got into a BMW Z3. Although the Z3 was not released until months after the film
had left theaters, BMW received 9,000 orders for the car the month after the movie opened.

2.3.1. New retailer.

Retail marketing encompasses all of the ways a consumer business attracts customers
and generates sales of its goods and services. Retail marketing strategies touch virtually
everything in a company’s operations, including signage, store layout, sales and promotions,
pricing strategies, advertising, checkout processes, and customer service.
 A retail marketing mix is similar to the traditional marketing mix, also known as the “4
Ps” of marketing. These include product, pricing, place, and promotion. The retail marketing mix
adds two more “Ps” to the mix: people and presentation. These elements represent the value of
sales associates and other staff in retail settings, as well as the importance of aesthetics and
design in retail locations.
For example:

 In-store displays that feature certain products or price cuts.

 Offer samples of new products.
 Hosting events like live music or product demos.
 Having a suggestion box or interactive board.
 In-store promotions that encourage your customers to walk into your store.
2.3.2. Desktop manufacturing.

What's special about Desktop Production, is that it blurs the line between physical and
digital. All objects created through Desktop Manufacturing, like 3D printing, start with a digital
model. Now, once the object is digital, it can easily be stored, transported, and modified to
meet the specific needs of the customer. Companies can start this process by creating new
objects using digital modeling tools. Application of 3D printing technology in the production of
biological models (models of human parts such as bones, teeth, artificial ears, etc.). 3D printing
technology also supports the testing of new medical methods and technologies, enhancing
medical research, teaching and training medical staff. 3D printing can help retailers reduce
inventory by replacing physical products with digital designs. On the other hand, 3D printing
could harm retailers by allowing customers to create their own products instead of buying them
from a retailer.

2.4. Price.

Price is one of the four main elements of the marketing mix. Pricing is the only revenue-
generating element in the marketing mix (the other three elements are cost centres—that is,
they add to a company’s cost). Pricing is strongly linked to the business model. The business
model is a conceptual representation of the company’s revenue streams. Any significant changes
in the price will affect the viability of a particular business model.

A well-chosen price should accomplish three goals:

 Achieve the company’s financial goals (profitability)

 Fit within the realities of the marketplace (customers are willing and able to pay the set
price)
 Support a product’s positioning and be consistent with the other variables in the
marketing mix (product quality, distribution issues, promotion challenges)
 For example: Uniqlo, a Japanese clothing brand, is renowned worldwide for its low price and
good quality products. Most of the products at Uniqlo are priced under $200. The price of
jeans is $25 while that of a T-shirt is $15. Thus, the pricing objective of the brand is sales-
oriented, aiming to increase market share.
2.4.1. Pay What You Want.

Pay what you want (PWYW) can be an attractive marketing strategy to price discriminate
between fair-minded and selfish customers, to fully penetrate a market without giving away the
product for free, and to undercut competitors that use posted prices. We report on laboratory
experiments that identify causal factors determining the willingness of buyers to pay voluntarily
under PWYW. Furthermore, to see how competition affects the viability of PWYW, we
implement markets in which a PWYW seller competes with a traditional seller. Finally, we
endogenize the market structure and let sellers choose their pricing strategy. The experimental
results show that outcome-based social preferences and strategic considerations to keep the
seller in the market can explain why and how much buyers pay voluntarily to a PWYW seller. We
find that PWYW can be viable on a monopolistic market, but it is less successful as a competitive
strategy because it does not drive traditional posted-price sellers out of the market. Instead, the
existence of a posted-price competitor reduces buyers' payments and prevents the PWYW seller
from fully penetrating the market. When given the choice, most sellers opt for setting a posted
price rather than a PWYW pricing strategy. We discuss the implications of these results for the
use of PWYW as a marketing strategy.

2.4.2. Freemium.

A combination of the words "free" and "premium," freemium is a type of business

model that offers basic features of a product or service to users at no cost and charges a
premium for supplemental or advanced features. A company using a freemium model provides
basic services on a complimentary basis, often in a "free trial" or limited version for the user,
while also offering more advanced services or additional features at a premium.

KEY TAKEAWAYS

 Freemium is a business model in which a company offers basic or limited features to

users at no cost and then charges a premium for supplemental or advanced features.
 The freemium business model dates back to the 1980s, though the term was coined in
2006.
 Freemium models are especially popular among software applications and internet-
based businesses.
 This type of business model has the advantage of acquiring a large set of initial users,
especially when there's no cost associated with trying out an app or a service.
 Ultimately, for the freemium model to work, companies must ensure their premium
users can access more upgraded features, such as increased storage or customizations,
and additional customer service.
 Some examples of successful freemium companies include Flickr, YouSendIt, Evernote,
37signals and PDF Online. Skype could also be considered a freemium company.

III. 3. Suggestions for companies to react towards the changing of digital

marketing.