Chapter 3

Marketing Mix Interaction

Marketing Mix Interaction

 Marketing is a data driven science.

 Marketing Models.

 Aspects of Marketing

 The Market

 The product

 Goods

 Ideas

 Product pricing

 Product Promotion

 Product Distribution

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1. Marketing is a data driven science: The good marketer will develop the data

necessary to define the customer's needs, develop a good product based on the

available resources, deliver the product in an effective manner to the

consumer at a price that reflects the customer value and the profit desired by

the producer.

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7 Steps to a Data-Driven Marketing Strategy

Step 1. Assemble Your Team

Creating a data-driven marketing plan starts with handling the data. And that

starts with your organization. Most organizations have siloed data because they

have siloed departments. That’s a weakness and the move to data-driven

marketing will make it more obvious.

Handling the switch to a single data corpus fed by sales, marketing and customer

services, and accessible to all, will usually mean putting together a cross-

departmental and cross-disciplinary team.

Step 2. Integrate Your Data

Effective data-driven marketing requires data to be held in one place, fed by as

many customer behaviors as possible and accessible to everyone who needs

access to it. But the majority of data is held in silos created by the department

that originally collected or owned it. Data from multiple sources needs to be

integrated and made accessible.

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Step 3. Evaluate Your ROI Criteria

The real key to figuring out ROI lies not so much in data as in those last few

words: value of a customer. Marketers increasingly need to measure ROI in terms

of a sales-ready lead or an upsell-ready customer; single customer view is coming

to mean a single, interdepartmental view of what a customer is. Mining the data

you already have for metrics that show the strongest correlation to high CLV

should reveal the figure or figures that represent the ‘return’ in ROI – the

measurable goal your efforts are oriented toward. It’s vital to evaluate ROI

criteria in terms of their contribution to overall company goals.

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Step 4. Analyze Your Audience

Data needs to be built around the customer or it will simply be an ungovernable

mass that obscures value instead of delivering it. Use your data to understand

your audience more comprehensively and predict customer value.

Step 5. Predict and Plan

Once you have working personas, the next thing to do is to build a map for them

to move through. Each persona should have a buyer journey already understood

to some degree; what you can do now is plan how you intend to support that

journey at each stage. The notion that we’re marketing for leads who will travel

down a funnel should be left behind: instead we’re using data analytics to

improve our understanding of buyer behavior through a complex, semi-cyclical

journey.

Step 6. Test Flight and Review

It is important to make sure that the right data is collected on a ‘continuous,

consistent, comprehensive and comparable’ (4Cs) basis (custom links, landing

pages etc.) and re-attribution methodologies employed as necessary for proper

comparison.’

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 Step 7. Deploy

Once your test flights are showing positive results, it’s time to roll out a full-size

campaign. Deployment should be rolled out by scaling the pilot campaigns where

possible; where those campaigns won’t scale to full-size, you should have solid

personas, preemptive segmentation and a plan for data acquisition during the

deployment. It makes sense to think of deployment as many short cycles rather

than one long one, corrected on a daily or weekly basis by incoming data.

2. Marketing Models: When the producer is a commercial entity and the end user

makes the purchasing decision, the model used to describe this transaction is often

called a Business to Consumer (B2C) model.

When the producer is a commercial entity and a second commercial entity makes

the purchasing decision but provides the product to their customer, then the model

is often called a Business to Business (B2B) model.

The difference in these models affects how the marketer constructs his marketing

analysis and marketing mix.

10 Types of Marketing Models

1. SWOT and TOWS analysis

2. 7Ps marketing mix

3. STP marketing model

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4. Porter's five forces

5. AIDA

6. Ansoff matrix

7. Growth-share matrix

8. SOSTAC

9. McKinsey 7-S model

10. Product life cycle

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3. Aspects of Marketing: Marketing has many aspects or sub- disciplines within

the broad discipline of marketing. They include:

 Advertising.

 Copywriting.

 Direct marketing.

 Event planning.

 Graphic design.

 Loyalty marketing.

 Branding.

 Customer relationship management (CRM).

 Internet Marketing.

 Market research.

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  Marketing communications.

 Media relations.

 Merchandising.

 New product development.

 Pricing.

 Product management.

 Promotion.

 Public relations.

 Sales management and support.

 Search engine optimization (SEO).

 Social media optimization.

 Strategic planning.

 Supply chain management.

Marketing functions in all of these areas. A marketer can do many of these functions

within an organization or specialize in one or

4. The Market: prospective customers for a given product, service, or idea the

market consists of all prospective customers for a given product, service, or idea.

Customers can be purchasers who intend to resell the product or end users who

intend to use or consume the product. The market can be categorized into separate

groups called segments. When a producer appeals to a market or market segment,

the producer must take into account the distinction between the end user or consumer

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and the purchaser or decision maker(s). This is especially true in B2B models. The

market may be individuals or organizations that are able to purchase the

organization's product. Each entity in the delivery chain will have different needs,

so a complete market needs analysis must include all potential segments and all

entities within each segment.

5. The Product: all goods, services, and ideas that are sold or traded Products that

can be marketed include all goods, services, and ideas that are sold or traded.

Products can be either tangible, as in the case of physical goods, or intangibles, such

as those associated with service benefits or ideas (intellectual property), or any

combination of the three. The producer is the entity that offers the product to the

market. The producer can be the manufacturer, the wholesaler, the retailer, the

service provider, or a combination of these. For services, it is sometimes easier to

use the term provider instead of producer.

6. Goods: Goods are a physical product capable of being delivered to a purchaser

and involves the transfer of ownership from seller to customer.

7. Services: A service is a non-material action resulting in a measurable change of

state for the purchaser caused by the provider.

8. Ideas (Intellectual Property): Intellectual Property is any creation of the intellect

that has commercial value, but is sold or traded only as an idea, and not a resulting

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service or good. This includes copyrighted property such as literary or artistic works,

and ideational property, such as patents, appellations of origin, business methods,

and industrial processes.

9. Product pricing: price is set at a level which indicates the perceived value

agreement between producer and purchaser, once an organization has its product to

sell, it must then determine the appropriate price to sell it at. The price is set by

balancing many factors including supply-and-demand, cost, desired profit,

competition, perceived value, and market behavior. Ultimately, the final price is

determined by what the market is willing to exchange for the product. Pricing theory

can be quite complex because so many factors influence what the purchaser decides

is a fair value. It also should be noted that, in addition to monetary exchange, price

can be the exchange of goods or services as in a barter agreement, or an exchange of

specific behavior, such as a vote in a political campaign

10. Product Promotion: informing the market about a product, product line, brand,

or company and encouraging a purchase decision once an organization has learned

the market needs, produced or procured a product, and priced it, it then needs to

promote the product by letting the market know that it exists, and how it can be

purchased. Promotion involves providing information about a product, product line,

brand, or company. There are many ways to promote including:

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  Advertising

 Personal selling

 Public Relations/Publicity

 Sales discounts

 Sampling

 Word of mouth, including electronic endorsements

 Product placement

11. Product Distribution: delivery of the product to the purchaser once an

organization has produced or procured, priced, and promoted a product; it then

needs to deliver that product to the purchaser. Some distribution examples:

 Direct sale to the customer from the producer.

 Wholesale distribution where the producer sells in large quantities only to an

intermediary, not the end user.

 Retail sales where a retailer will buy large quantities, but sell smaller

quantities to individual customers.

 Value Added Resale (VARs) where an organization purchases a product from

a producer and, in turn, resells it to a consumer after adding additional

products, services, or expertise.

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