Marketing Strategy – 4Ps – 7Ps – 4Cs

The Marketing Mix 4P’s and 7P’s Explained

The advent of significant service sectors and digital marketing and communications, have changed both marketing strategy and dynamics of business in reaching consumers.

From the Marketing Mix (2018):

‘Before we go into all the elements of the marketing mix, and to avoid confusion between the 4p’s, 7p’s and even the 4c’s – you should pay attention at the image below to understand what makes up the entire marketing mix.

4Ps 7Ps and 4Cs in marketing strategy and digital world.

4Ps or 7Ps in Marketing? (Image copyright MarketingMix 2018)

The image above is a simplistic diagram of the elements that are included in a marketing mix.

It is a basic concept, but here’s the cold hard truth…

If you don’t understand it in detail or at all, then there is a fairly certain chance that you are missing out on the key ingredients that will ensure scalable success from the ground up.

It has been said many, MANY times in business that if you don’t know your target market well enough and figured out what they exactly want, you’ll commit entrepreneurial suicide and the business will inevitably fail.

On the other hand, you can be sure to attract mountains of profits when you have a deep understanding of these concepts. Understand this fully and you will know exactly how to maximize profits on your own sustainable business or help become a valuable asset within your company and gain endless promotions.

Sadly, for many existing marketers and aspiring marketers, this concept is glossed over as “everyone seems to know what it is” and is disregarded as basic knowledge. But do you really know what it is? Let’s find out.

Now, what is a marketing mix, exactly?

 

  • Marketing Mix 4P’s Product, Price, Place and Promotion.

  • Marketing Mix 7P’s People, Process and Physical Evidence.

  • Marketing Mix 4C’s Customer Value, Cost, Convenience and Communication.’

 

Of the above key changes have occurred in how ‘people’ ‘communicate’ in a digital environment carrying word of mouth WOM quickly and broadly to attain value from trusted sources, in other words out of the control of conventional marketing.

 

Reference:

Marketing Mix 2018, The marketing mix 4P’s and 7P’s explained, viewed 17 July 2018, < http://www.marketingmix.co.uk >

 

 

 

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EU GDPR – Digital Marketing – European Commission – General Data Protection Regulation

What impact will the EU General Data Protection Regulation (GDPR) have upon advertising, media, marketing and social media channels in both the EU and outside?

How important is involvement of IT/web teams, customers, legal, financial, communications and marketing?

EU EC GDPR 2018 description for business and marketing

European Commission GDPR General Data Protection Regulation (image copyright European Commission)

The European Commission GDPR

According to the European Commission:

Fundamental rights

The EU Charter of Fundamental Rights stipulates that EU citizens have the right to protection of their personal data.

Legislation

The new data protection package adopted in May 2016 aims at making Europe fit for the digital age. More than 90% of Europeans say they want the same data protection rights across the EU and regardless of where their data is processed. (European Commission, 2018)

Scope of the GDPR

From the technology consultancy Trunomi (2018):

‘The EU General Data Protection Regulation (GDPR) replaces the Data Protection Directive 95/46/EC and was designed to harmonize data privacy laws across Europe, to protect and empower all EU citizens data privacy and to reshape the way organizations across the region approach data privacy. The key articles of the GDPR, as well as information on its business impact, can be found throughout this site.

An overview of the main changes under GDPR and how they differ from the previous directive

  • IncreasedTerritorial Scope (extra-territorial applicability)
  • Penalties
  • Consent
  • Data Subject Rights
  • Breach Notification
  • Right to Access
  • Right to be Forgotten
  • Data Portability
  • Privacy by Design
  • Data Protection Officers’

 

Australian context for the GDPR

From the Office of the Australian Information Commissioner (OAIC 2018):

Key messages

The European Union General Data Protection Regulation (the GDPR) contains new data protection requirements that will apply from 25 May 2018.

Australian businesses of any size may need to comply if they have an establishment in the EU, if they offer goods and services in the EU, or if they monitor the behaviour of individuals in the EU.

The GDPR and the Australian Privacy Act 1988 share many common requirements, including to:

  • implement a privacy by design approach to compliance
  • be able to demonstrate compliance with privacy principles and obligations
  • adopt transparent information handling practices.

There are also some notable differences, including certain rights of individuals (such as the ‘right to be forgotten’) which do not have an equivalent right under the Privacy Act.

Australian businesses should determine whether they need to comply with the GDPR and if so, take steps now to ensure their personal data handling practices comply with the GDPR before commencement.

Issues of non-compliance

However, Hern in The Guardian (2018) when observing large personal data using companies states:

Privacy policies from companies including Facebook, Google and Amazon don’t fully meet the requirements of GDPR, according to the pan-European consumer group BEUC.

An analysis of policies from 14 of the largest internet companies shows they use unclear language, claim “potentially problematic” rights, and provide insufficient information for users to judge what they are agreeing to.

“A little over a month after the GDPR became applicable, many privacy policies may not meet the standard of the law,” said Monique Goyens, BEUC’s director general. “This is very concerning. It is key that enforcement authorities take a close look at this.”

Impact on Email marketing

Email marketing software company MailChimp (2017):

The scope of the GDPR is very broad. The GDPR will affect (1) all organizations established in the EU, and (2) all organizations involved in processing personal data of EU citizens. The latter is the GDPR’s introduction of the principle of “extraterritoriality”; meaning, the GDPR will apply to any organization processing personal data of EU citizens—regardless of where it is established, and regardless of where its processing activities take place. This means the GDPR could apply to any organization anywhere in the world, and all organizations should perform an analysis to determine whether or not they are processing the personal data of EU citizens. The GDPR also applies across all industries and sectors…… relevant to MailChimp…

 

…..Expansion of scope; definitions of personal and sensitive data; individual rights: EU citizens will have several important new rights under the GDPR, including the right to be forgotten, the right to object, the right to rectification, the right of access, and the right of portability and stricter processing requirements’

 

However, the most significant issue are the stricter consent requirements:

Stricter consent requirements

Consent is one of the fundamental aspects of the GDPR, and organizations must ensure that consent is obtained in accordance with the GDPR’s strict new requirements. You will need to obtain consent from your subscribers and contacts for every usage of their personal data, unless you can rely on a separate legal basis, such as those found in number 5 below. The surest route to compliance is to obtain explicit consent. Keep in mind that:

1 Consent must be specific to distinct purposes.
2 Silence, pre-ticked boxes or inactivity does not constitute consent; data subjects must
explicitly opt-in to the storage, use and management of their personal data.
3 Separate consent must be obtained for different processing activities, which means
you must be clear about how the data will be used when you obtain consent. (MailChimp 2017).

Consent would appear to be both central to compliance and rights of privacy yet problematic for much existing practice in ‘marketing’.

Best Practice Marketing

Meanwhile in Australia Hanson (2018) argues in ‘Mumbrella’ that it’s best practice for both business and customers:

For Australian businesses that want to better serve their customers, the GDPR signals the end of activities that marketers should have abandoned long ago. This means that it’s no longer good enough to buy a mailing list, nor is it appropriate to send cold-call emails or, heaven forbid, actually send spam.

Under the new rules, customers have to explicitly opt-in to getting your communications. In the old days, it was fine to pre-tick boxes on a web form allowing you to send a customer marketing emails. Now you can’t do that. Instead, customers have to give consent to you communicating with them, and that consent needs to be clear, in plain English, as well as informed, specific, unambiguous and revocable.

How to implement GDPR?

What does this mean for marketing in a digital environment or system? According to the Digital Marketing Institute (2018):

Step 1. Get your privacy policy page up to scratch

Step 2. Audit your current databases for opt-in consent

Step 3. Re-opt-in campaigns for current databases

Step 4. Create a process for opt-in consent

Step 5. Get the sales team on board

Step 6. Review third-parties who have access to your databases

Step 7. Have a streamlined process for information requests

Step 8. Prepare for a security breach.

 

In the short term the direct impact is neither selling nor buying of client email lists, but clear or voluntary consent or opting-in, through organic collection of prospective and existing clients’ details, how?

Using digital marketing techniques for organic inbound SEO search engine optimisation traffic as not just strategy but a living system to attract prospective clients over time. This will ensure compliance and allow prospective clients to opt-in voluntarily for newsletters, follow up etc. with the peace of mind their data will be private and not be shared.

However, organic inbound SEO requires cooperation and input across departments to share inter disciplinary expertise whether strategic management, IT, legal, finance, logistics, marketing, communications and importantly, customers or clients.

 

Reference List:

Digital Marketing Institute, 2018, ‘Trends & Insights: The Definitive GDPR Checklist for Marketers’, 5 April, viewed 7 July 2018, < https://digitalmarketinginstitute.com/en-au/blog/05-04-2018-the-definitive-gdpr-checklist-for-marketers >

European Commission, 2018, ‘Data protection in the EU’, viewed 7 July 2018, < https://ec.europa.eu/info/law/law-topic/data-protection/data-protection-eu_en >

Hanson, G 2018, GDPR is a great thing for Aussie marketers, Blog, 13 June, viewed 7 July 2018, < https://mumbrella.com.au/gdpr-is-a-great-thing-for-aussie-marketers-522988 >

Hern, A 2018, ‘Privacy policies of tech giants ‘still not GDPR-compliant’’, The Guardian, 5 July, viewed 7 July 2018, < https://www.theguardian.com/technology/2018/jul/05/privacy-policies-facebook-amazon-google-not-gdpr-compliant >

MailChimp, 2017, Getting ready for the GDPR, MailChimp Blog, 9 Oct 2017, viewed 7 July 2018, < https://blog.mailchimp.com/getting-ready-for-the-gdpr/ >

OAIC Office of the Australian Information Commissioner, 2018, ‘Privacy business resource 21: Australian businesses and the EU General Data Protection Regulation’  <  https://www.oaic.gov.au/agencies-and-organisations/business-resources/privacy-business-resource-21-australian-businesses-and-the-eu-general-data-protection-regulation > 7 July 2018.

Trunomi, 2018, ‘EU GDPR key changes’, viewed 7 July 2018, < https://www.eugdpr.org/key-changes.html >

International Education Market Research

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Recently there have been articles about international students’ motivations and well-being on their journey of discovery through international education, a significant industry.

Such articles are relevant in that they do not criticise or dog whistle international students by describing them as ‘immigrants’ or suggesting they purposely short visa and immigration systems for long term or permanent residency.

In addition to reflecting increased international mobility and prosperity in developing nations, such insights should be imperative for all service-based marketing, especially digital carrying word of mouth or WOM.

Word of mouth is the most influential marketing channel as it is based upon experience of friends, family and peers with a product or service, the most trusted channel.

The message for marketers in any industry, especially services, is never make assumptions or rely upon headline or indirect data, but your customers too.  Marketing brand, reputation etc. requires constant feedback, monitoring of well-being and word of mouth while leveraging the same authentic feedback via social media, couched within a digital marketing strategy.

 

What we know about why Chinese students come to Australia to study

Hannah Song in The Conversation:

In 2016-17 Australia’s third largest export, international education, leapt from A$23.6 billion to a record high of A$28 billion. Within the higher education sector, the highest intake of international students is of Chinese origin.

Behind these statistics are the individual stories and aspirations of Chinese students’ parents who provide them the financial resources and emotional support. Yet, we know so little about why it matters so much to their parents, and what long-term impacts overseas study has on them and their families when they return home…

….Focusing on a shifting landscape of education in Shanghai, I undertook a longitudinal pilot case-study of four bilingual kindergarten-secondary schools to investigate the aspirations Chinese middle-class parents have for their children’s education.

….If Australia is to remain a destination for world-class education, we need to be far more self-reflective and long-sighted about what Australian international education offers: global citizenship and transnational mobility. We need to listen to the voices of an increasing middle-class in China.’

Student journey through international education

International Students (Image copyright Pexels)

‘’It’s stressful being an other’: The mental health woes of international students

Emily Baker in The Conversation:

Moving to Australia has, in Daniel Kang’s words, been a mix of challenges and little blessings. The Australian National University student has found room to breathe and develop. Walks through the abundant bush help clear his head. Generally, the experience has exceeded his expectations.

But moving from Singapore to Canberra has also carried difficulties. It can be stressful being an “other”, he said. The 22-year-old has at times been very lonely…

The most recent student experience survey from the federal government’s Quality Indicators for Learning and Teaching found undergraduate international students rated their experience at Australian universities 75 out of 100 per cent – slightly below the 79 per cent awarded by domestic students.

But separately, many international students report stress. They report social isolation. The very fact of being an international student in Australia – the experience of being alone in a new country, subject to financial pressures, navigating a new culture, and adjusting to a new academic system – is considered to make an individual at greater risk of mental ill-health.’

 

Any institution, business or organisation that neglects its existing customers to inform quality and marketing strategy development, maybe asking for trouble while relying upon PR and sales?

In the case of international education the most valuable resources are accessible onshore and on campus, i.e. enrolled students and their networks.

Focus Group Feedback – Qualitative Data Analysis – Grounded Theory & Coding

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Focus Group Feedback – Qualitative Data Analysis – Grounded Theory & Coding

 

Potential respondents must have the ethics of research explained before any interview or feedback, not only verbally at start of an interview or related interaction, but inclusion on a briefing document explaining study and research, storage of data, along with ethics.

Focus Group Interviews

 

Focus interviews, individual or via a group, based on psychoanalysis, can be very adaptable, allow expression of body language, in addition to concept checking or informal communication which would be precluded by the written form.  However, there are disadvantages, interviews can be very time consuming to conduct, transcribe, code and analyse when using open questions to elicit perceptions, attitudes and experience of the research area, plus they can be subjective or prone to bias.  On the other hand, they are useful to explore same perceptions etc., then importantly, used to inform a valid survey or data collection instrument or further research (Bell, 2005).

 

Types of interview include structured e.g. answering survey face to face, semi-structured and unstructured, the latter allows good quality data to be offered.  The unstructured interview can offer an opportunity for an industry person to explain and elaborate on issues that have emerged organically, that would have otherwise remained unknown and ignored (Ibid.).

 

Focus Group Interview Feedback Respondents

 

The ‘Focus Respondents’ for this research study included two former international students now professionals with digital literacy, two international education marketing (and admissions) managers for large multinational education providers and two more senior ‘Focus Respondents’ who manage within international education, but without formal marketing background.

 

‘Focus Respondents’ were asked open questions based upon the literature and round the information search process with any critical issues, key words, processes or phenomenon to be expressed, not in long narrative for full transcription, but abbreviated for notes and action coding.

 

It was explained to focus respondents, to give them structure or context, that the general focus was decision making behaviour process, represented by a five-stage model:

 

Purchase Decision Making Model

 

Five Stage Purchase Decision Behaviour Model or Process (simplified)

  • Recognition of Need
  • Information Search
  • Evaluation of Alternatives
  • Purchase Decision
  • Post Purchase Behaviour

(Kotler & Keller, 2012).

 

From same focus interviews regarding information search or discovery process, the research elicited factors or latent variables, then quantified by survey to analyse for significance of these factors in ‘optimal marketing and communications’.  These factors and construct can then be used to develop an information seeking construct and a useful template for industry.

Next step is to deliver survey to a hopefully significant sample population to then ground any marketing strategy development.

 

Reference List:

 

Bell, J. (2005) Doing Your Research Project. (4th Ed.). Maidenhead: Open University Press.

 

Kotler, P. & Keller, K. (2012) Marketing Management. (14th Ed.) Upper Saddle River: Pearson Education – Prentice Hall.