Having explored the ‘Product’ part of the marketing mix, this blog is going to explain how ‘Price’ can be applied to the digital era.
One of the main benefits of the digital world is that customers can now use websites to compare prices on products and services before purchasing them. Therefore, customers can make much more informed decisions on their purchase in order to get the best deal or lowest price. Previously if you wanted to purchase a TV you might have to walk into three or four shops to compare prices. However, now just a quick search on a number of websites or in the search engine can find the customer the best deal.
Also price transparency has been helped with the rise of comparison websites that do all price comparing for you. Something such as MoneySupermarket.com can compare anything from car insurance to energy providers potentially saving customers a lot of money.
In addition, customers can now research prices before purchasing in store. For instance, you might research all the different phone providers before purchasing a new iPhone, then go to the brands actual store that has the best offer to buy it.
Auctions and Bidding
The internet has also seen the development from the traditional B2B and B2C network, with customers to customer selling and buying, or C2C. This has risen through the introduction of auction and bidding websites such as eBay. Here the highest bidder essentially ‘wins’ the product and as a result purchases it. So the traditional marketing element of pricing has been changed to an online auction through the digital aspect of websites.
Other Pricing Elements
Websites have also added many other pricing structures and policies for bands when selling products or services online. Purchasing online now has the added cost of paying for postage and packaging, and if you want your product to arrive quickly, this can add quite a significant cost to the final price!
Also some products might have dynamic pricing on them which change in response to demand, with an increase when the product is in limited stock. In a traditional retail store this wouldn’t be possible, but now with websites, retailers can alter their prices instantly. Finally, customers have the chance to gain more discounts or add-ons when combining a variety of products. For instance, purchasing a marketing book online from Amazon could enable you to get 10% off on another related book to that.
So there we have it, the digital world has definitely had an impact on the pricing part of the marketing mix from price transparency to auctions, and once again illustrates how a traditional element can be enhanced through digital.
Next time we’ll delve into how ‘Place’ has changed in response to the wonders of the digital world!
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