From marketing mix to e marketing mix

Abstract The marketing mix paradigm, famously known as the 4 Ps, has been extensively discussed in both academic literature and managerial practice, evolving alongside marketing theory. While the 4 Ps marketing mix is undeniably a cornerstone of marketing theory, the changing business landscapes have necessitated a reevaluation of the controllable factors that constitute the marketing mix. Among these contexts, the digital business environment stands out as the most recent and demanding, requiring a differentiated approach to the mix. Throughout this evolutionary process, researchers have been divided into two camps: the conservatives, who believe the 4 Ps paradigm can adapt to environmental changes by incorporating new elements within each P, and the revisionists, who argue that the 4 Ps paradigm is outdated and propose alternative frameworks. This paper aims to elucidate these contrasting approaches to the evolution of the marketing mix by reviewing pertinent literature on the emarketing mix, with a specific focus on the development of marketing mix theory for the digital context. Keywords: Emarketing, Marketing mix, Emarketing mix

From Marketing Mix to E-Marketing

Mix:

a Literature Overview and

Classification

Author: Thang, Tran Duc

Abstract

The marketing mix paradigm, famously known as the 4 Ps, has been extensively discussed in both academic literature and managerial practice, evolving alongside marketing theory While the 4 Ps marketing mix is undeniably a cornerstone of marketing theory, the changing business landscapes have necessitated a reevaluation of the "controllable factors" that constitute the marketing mix Among these contexts, the digital business environment stands out as the most recent and demanding, requiring a differentiated approach to the mix Throughout this evolutionary process, researchers have been divided into two camps: the "conservatives," who believe the 4 Ps paradigm can adapt to environmental changes by incorporating new elements within each "P," and the

"revisionists," who argue that the 4 Ps paradigm is outdated and propose alternative frameworks This paper aims to elucidate these contrasting approaches to the evolution of the marketing mix by reviewing pertinent literature on the e-marketing mix, with a specific focus on the development of marketing mix theory for the digital context

Keywords: E-marketing, Marketing mix, E-marketing mix

1 Introduction

Since its introduction by Neil Borden in 1953, when he first used the term "marketing mix" during his speech at the American Marketing Association, the business environment has undergone significant changes Jerome McCarthy (1964) later defined the 4 Ps marketing mix as a combination of factors that managers can utilize to meet market needs Understanding the origins of the traditional marketing mix is essential for grasping the differentiation between the "conservatives" and

"revisionists" discussed in this paper

1.1 Theoretical framework

McCarthy's version of the marketing mix consists of four elements: product, price, place, and promotion These four Ps encompass several managerial policies described by Borden (1964), thereby incorporating additional sub-mixes within each P According to Kalyanam & McIntyre (2002), the marketing mix encompasses numerous micro-elements that are grouped to streamline managerial tasks The question of whether to extend the traditional mix in the digital context, by including more elements, or to discard it and develop a new framework, is a matter of feasibility and practicality (see Figure 1)

Borden (1964) emphasized the need to develop a comprehensive understanding of marketing programs by formulating twelve essential elements These elements serve two purposes: 1) creating

a list of crucial components or ingredients that constitute marketing programs, and 2) identifying the various forces that impact a firm's marketing operations, requiring the marketing manager to adapt and seek a successful mix or program

Over time, McCarthy's marketing mix has gained widespread acceptance among managers and academics, establishing itself as a fundamental component of marketing theory and practice Its broad adoption can be attributed to its simplicity, making it a valuable tool for both marketing decision-making and education (Grönroos, 1994; Yudelson, 1999; Jobber, 2001) Within the Managerial School of Marketing (MSM) (Sheth et al., 1988), the marketing mix is viewed as an operational tool to attain marketing objectives, particularly in terms of managing controllable marketing factors within a competitive environment that is beyond a firm's control (Varaldo, 1996) The MSM has evolved, encompassing various stages from the marketing concept of the 1970s to the introduction of Total Quality Management in the 1980s (Yudelson, 1999), and relationship marketing

in the 1990s, to its adaptation to the digital context today, the marketing mix has consistently been a topic of discussion and debate among both managers and academics

The impact of changes in the social and economic environment on the marketing mix is undeniable These transformations have a profound influence on the competitive landscape, necessitating an adaptation of the marketing mix In the digital context, specifically, the original version of the marketing mix reveals significant limitations and shortcomings

The 1960s did not foresee the level of customer interaction and communication possibilities that the Internet has brought about The original formulation of the 4 Ps was designed for a manufacturing-oriented context However, the inherent adaptability of the 4 Ps framework enables its application in competitive environments that differ substantially from its original intent The central question that this paper seeks to address is: "Can a new set of elements be developed to effectively modify the traditional mix and align it with the requirements of the digital era?"

Researchers hold two distinct perspectives regarding the modification of the traditional marketing mix for digital contexts One group, referred to as the "conservatives," argues that the 4 Ps paradigm can remain the dominant framework in the digital era They propose adjusting the sub-mixes within each P by incorporating or eliminating certain factors to adapt to the new landscape On the other hand, another group of authors, known as the "revisionists," contends that the 4 Ps framework has become outdated They advocate for the addition of new elements or a complete overhaul of the mix's components Both approaches offer compelling justifications to support their respective conclusions This paper aims to provide clarity on these motivations by conducting a comprehensive literature review on the topic

1.2 Objective and delimitation of research

This study provides a comprehensive literature overview and classification to present an overview of the ongoing debate regarding the suitability of adopting the traditional marketing mix in digital environments Rather than providing a definitive answer, the paper aims to highlight relevant aspects that should be taken into account in this debate It is important to note that a key limitation of this study is its exclusive focus on academic opinions published in research papers and academic textbooks, without considering practical field experience Consequently, the paper emphasizes the necessity for further research on this issue to incorporate insights from real-world implementation and experiences

2 New marketing mix for the digital business environment: the revisionists’ view

the traditional 4 Ps and provides a more specific framework for defining marketing levers This line of research, referred to as "revisionist," argues for a fundamental reconceptualization The primary critique against the 4 Ps is its internal focus, which leads to a lack of customer orientation and insufficient emphasis on customer relationships (Möller, 2006; Popovic, 2006; Constantinides, 2002a, b) Schultz (2001) highlights the need for a new externally oriented paradigm that considers the network system view in today's marketplaces Notably, all the reviewed literature in the "revisionist" e-marketing mix domain emphasizes the importance of explicit customer orientation This limitation

is relevant to all aspects of modern marketing but has particular significance in Internet marketing, where interactivity is viewed as a critical factor

It is interesting to notice that, despite these criticisms, the majority of the “revisionist” authors reviewed agree to include the 4 Ps in their marketing mix models, with few exceptions

Lawrence et al (2000) suggest expanding the traditional 4 Ps of the marketing mix by including two additional Ps: people and packaging This expanded mix is then incorporated into a 5 Ps marketing concept that includes paradox, perspective, paradigm, persuasion, and passion This proposal has been a subject of debate in the marketing mix literature for several decades

In the Italian literature, Prandelli and Verona (2006) propose a 3 Cs model that incorporates key elements within each C: content (website and platform), community (interaction platform and relational capability), and commerce (including the traditional 4 Ps: product, price, place, and promotion)

Another model suggested by Pastore and Vernuccio is the 3C+I (interface) model, where the 4 Ps are integrated and recontextualized in the online environment This model takes into account the specific characteristics of the digital space, as depicted in Figure 2

These alternative models and frameworks reflect the ongoing efforts to adapt and extend the traditional marketing mix to address the complexities of the digital era and incorporate the unique features of online platforms and interactions

Kalyanam and McIntyre (2002) introduce a comprehensive model called the 4P+P2+C2+S3, which expands upon the traditional 4 Ps This model incorporates additional dimensions to provide a more complete taxonomy of the elements that constitute the marketing mix The three-dimensional representation helps capture the complexity of the operative context, as illustrated in Figure 3 Chen (2006) emphasizes the significance of the environment and interaction in a model proposed by Chinese researchers from National Taiwan University (1999) This particular model considers 8 Ps, with four of them aligning with the traditional Ps Figure 4 represents this expanded framework These models showcase the efforts of researchers to incorporate various dimensions and factors into the marketing mix to address the multifaceted nature of marketing in different contexts The inclusion of additional elements and dimensions helps provide a more comprehensive and nuanced understanding of the marketing mix in relation to specific environments and interactions

In the 8 Ps’ model

 Precision refers to the increased accuracy of the selection process of the target segment and market positioning in digital contexts, thanks principally to database management systems;

 Payment systems must be secure and easy for customers to use;

 Personalization concerns the possibility of creating a flexible interface, which can adapt to customers’ needs and wills;

 Push and Pull regard the choice of the trade-off between active communication policies (push) and communication on users’ demand (pull)

Indeed, some authors argue for a departure from the traditional 4 Ps and propose alternative marketing mixes that are better suited for the digital era For example, Chaffey et al (2000) contend that the Internet necessitates a reevaluation of the traditional marketing mix They highlight eight critical issues that should be considered in strategic-level marketing planning, including audience, integration, marketing support, brand migration, strategic partnerships, organizational structure, and budget

Constantinides (2002a) puts forth the Web Marketing Mix Model, which extends the marketing mix

to strategic and business organization levels In this model, he suggests a 4S framework that includes the following elements:

 Scope, of strategic relevance, includes strategic objectives, market analysis and potential, stage of e-commerce maturity, strategic role of e-commerce for the organization;

 The site has operational value and involves interface issues;

 Synergy has organizational significance including the integration among bricks and clicks aspects of the company’s business model;

 System, concerns the management of the Web platform, the data warehouse and the security systems

3 Maintaining the 4 Ps in digital contexts: the conservatives’ view

While acknowledging the need for adjustments in the marketing mix due to the influence of digital technologies, particularly the Internet, there is a smaller but theoretically consistent body of literature that argues in favor of the traditional 4 Ps model's adaptability and continued relevance in

these new contexts Researchers such as Aldridge et al (1997), Peattie (1997), O'Connor and Galvin (1997), Bhatt and Emdad (2001), Allen and Fjermestad (2001), and Möller (2006) assert that the 4 Ps framework is capable of adapting to the changes in society and the market brought about by digital technologies

These authors argue that the core principles of product, price, place, and promotion remain essential components of marketing, even in the digital era They contend that while adjustments and considerations may be necessary, the underlying concepts and strategies of the 4 Ps can still effectively guide marketing efforts and strategies in new contexts

By emphasizing the continued relevance and adaptability of the 4 Ps model, this perspective highlights the enduring importance of fundamental marketing principles while recognizing the need for contextual adjustments in response to technological advancements

Möller (2006) argues that the criticism of the 4 Ps model as being internally oriented stems from a misconception about the relationship between the marketing mix and the marketing concept According to Möller, the 4 Ps paradigm is entirely consistent with the marketing concept, which asserts that marketing activities should be founded on the identification of customer needs and wants This concept also implies the collection of specific information from customers to effectively meet their needs through segmentation, product differentiation, and positioning

Möller contends that the 4 Ps model aligns with the marketing concept by providing a framework for addressing customer needs Each of the four elements—product, price, place, and promotion—plays

a crucial role in understanding and fulfilling customer requirements By utilizing these elements, marketers can identify and cater to the explicit information necessary to meet customer needs effectively

In summary, Möller defends the coherence of the 4 Ps model with the marketing concept, highlighting how it enables marketers to align their activities with customer requirements through segmentation, product differentiation, and positioning

Peattie (1997) highlights the significant impact of digital technologies on marketing across various sectors, primarily due to their new communicative capabilities However, Peattie argues that the marketing mix approach can adapt to these changing needs For instance, in the product dimension, co-designing products with customers can be facilitated by digital technologies In terms of price, higher levels of transparency can be achieved, enabling customers to make more informed decisions The concept of place can be transformed by creating new ways to reach customers through digital channels Lastly, promotion can benefit from the interactive capabilities offered by digital technologies

Bhatt and Emdad (2001) emphasize the empowerment of the 4 Ps through the internal transformation brought about by the virtual value chain They suggest that each of the 4 Ps gains new dimensions in the digital context The product dimension incorporates personalized information, price involves transparency and personalization, place enables direct delivery, and promotion becomes more flexible

O'Connor and Galvin (1997) acknowledge the need for the traditional marketing mix paradigm to evolve in response to the digital landscape However, they propose that digital technologies can enhance the functionality of the marketing mix while maintaining the 4 Ps as the fundamental instruments for Internet marketing

In summary, these authors recognize the transformative impact of digital technologies on marketing but argue that the 4 Ps can adapt and evolve to meet the new demands They suggest incorporating new dimensions and leveraging the capabilities offered by digital technologies to enhance each element of the marketing mix for effective Internet marketing

Among the changes brought to each of the 4 Ps by digital technologies, the following are the most relevant:

Product: A contemporary redefinition of the product involves considering all the benefits that users

derive from the exchange over time (Yudelson, 1999) This revised definition is applicable in the digital context, where the Internet's capabilities offer significant advantages for product policies The interactive and connective nature of the Internet gives rise to a new concept known as the "virtual product" (Valdani, 2000; Pastore & Vernuccio, 2004) The virtual product combines tangible and intangible elements and can be adapted and personalized based on individual preferences, with active involvement from consumers (von Hippel, 2005; Dominici, 2008b)

In the digital realm, products can be delivered to consumers in digital formats (e.g., mp3 for music, avi for movies, pdf for books and magazines), allowing for their contextualized consumption within the digital framework (Pastore & Vagnani, 2000) On the demand side, the ability to access information plays a crucial role (Smith & Chaffey, 2001) Andreini (2006) highlights the effectiveness

of Nelson's classification (1970), which categorizes products as "search" or "experience." "Search" products are those for which complete information can be obtained before making a purchase, while

"experience" products lack pre-purchase information or acquiring it may be too costly The Internet has greatly facilitated the purchasing process for "search" products by making information readily available and affordable online Moreover, with the abundance of information and the interactivity of Web 2.0, it has become possible to transform "experience" products into "search" products (Klein, 1998; Andreini, 2006)

In summary, the evolving digital landscape has necessitated a broader understanding of the product, encompassing the long-term benefits derived from the exchange The Internet's capabilities enable the development of virtual products that combine tangible and intangible aspects, allowing for customization and personalization Additionally, the Internet facilitates the delivery of digital products and enhances the availability of information, transforming certain products into "search" products, thereby influencing the purchasing process

Price: A redefinition of price involves considering everything that the buyer gives in terms of money,

time, and effort to acquire a product (Yudelson, 1999) From the consumer's perspective, the Internet offers significant benefits in terms of reducing information asymmetries and increasing price transparency (Bhatt & Emdad, 2001) Consumers can compare prices in real time and make more informed decisions Furthermore, the implementation of Artificial Intelligence (AI) agents allows for automated and customized price and feature comparisons, reducing the time and effort involved in price assessment (Dominici, 2008a)

On the producer's side, the Internet enables real-time price modifications, which can lead to potentially detrimental price competition (Allen & Fjermestad, 2001), thereby reducing profit margins To mitigate this, online communication needs to focus on emphasizing the qualitative aspects and differentiation attributes of the product By highlighting unique value propositions and product differentiation, producers can steer the conversation away from solely price-based competition

In summary, the redefined concept of price encompasses the monetary, temporal, and effort-related aspects of acquiring a product The internet empowers consumers by providing real-time price comparisons and increased transparency However, producers need to strategically focus on product differentiation and qualitative aspects to avoid excessive price competition and maintain profit margins

Place: Today, place can be defined as encompassing everything that is done and necessary to

facilitate the exchange process (Yudelson, 1999) In the digital context, this definition highlights the importance of incorporating the element of the purchasing process as a key aspect of place within the marketing mix The process should be seamless and user-friendly, while simultaneously fostering customer relationships Physical locations are transformed into virtual spaces, incorporating intangible aspects of the transaction

Bhatt & Emdad (2001) emphasize that the Internet's main contribution to businesses goes beyond the mere ability to sell products online Its true value lies in its capacity to build relationships with customers The interactive capabilities of the Internet enable the implementation of more efficient and effective systems of digital Customer Relationship Management (e-CRM) By registering users on

a company's website and collecting online purchase data for each customer, valuable information can

be obtained This data can then be utilized to manage customers, maintain service levels, and enhance customer portfolio management (Fjermestad & Romano, 2003; O'Leary et al., 2004)

In summary, in today's digital landscape, place encompasses all the efforts and processes necessary

to facilitate smooth exchanges It emphasizes the importance of integrating the purchasing process and cultivating customer relationships The virtual nature of online spaces enables businesses to leverage interactive capabilities and implement effective e-CRM systems, utilizing customer data to enhance service levels and optimize customer portfolio management

Promotion: Promotion can be redefined to include all the information transmitted among parties

involved in the exchange process (Yudelson, 1999) This definition encompasses the interactive aspects of digital communication The Internet distinguishes itself from other mass communication media (Morris & Ogan, 1996) While it can effectively reach a large and geographically dispersed audience, it sets itself apart by offering interactive and multimedia features Hoffman & Novak (1997) highlight that in the web environment, the traditional one-to-many communication concept loses its dominance, and a new many-to-many paradigm emerges Personal interaction allows for targeted messaging tailored to specific individuals, providing a level of flexibility unmatched by other media (Bhatt & Emdad) This capability also enables reaching the target audience when they are in a relaxed and confident state (referred to as "low involvement" by Krugman, 1965), similar to television advertising, but with higher informational capabilities due to the multimedia features of web communication

The objective of online communication extends beyond advertising products; it aims to build a purchasing relationship and foster customer trust Interaction, multimedia, and relationship-building should be considered as essential elements of the promotion aspect of marketing

In summary, redefining promotion to include all transmitted information acknowledges the interactive nature of digital communication The Internet's unique features allow for personalized and targeted messaging, fostering engagement and trust The inclusion of interaction, multimedia, and relationship-building as integral components of promotion recognizes the evolving dynamics of online marketing

4 Conclusions and further research

The 4 Ps marketing mix, originally developed in an era dominated by physical products, physical distribution, and mass communication, has faced increasing criticism in the face of the new business environment shaped by the capabilities of digital contexts Many authors argue that the traditional marketing mix is outdated and inadequate for the 21st century While the mix can be adapted to incorporate a wide range of variables to accommodate changes in the business environment, a universally accepted replacement for the 4 Ps has yet to emerge after almost half a century

The ongoing search for a new dominant paradigm for marketing decisions in digital environments indicates that a widely accepted standard to fully substitute the 4 Ps is still elusive This lack of a new model may be due to an incomplete understanding of the full potential of digital technologies for business and a lack of emphasis on case study research in marketing operations Online companies have not yet reached their full maturity, unlike industrial enterprises that were well-established when the 4 Ps were formulated Despite the controversies between "conservatives" and

"revisionists," it is evident that the basic framework of the 4 Ps remains valid and serves as the core

of operational decisions, albeit with some extensions and adjustments

The conservative view suggests the possibility of modifying the elements within each P of the traditional mix Borden's (1964) formulation of twelve elements based on empirical evidence and case histories in the 1960s highlights the need for current research on this topic As e-marketing research and practice deepen their understanding and maturity in the digital environment, a new marketing mix paradigm will likely emerge, relegating the traditional 4 Ps and giving rise to a new widely accepted framework for marketing operations

In summary, while the traditional 4 Ps marketing mix has faced criticism and calls for a new paradigm, a universally accepted replacement has not yet emerged The ongoing evolution of the digital landscape and the need for further research and understanding suggest that a new marketing mix paradigm is still in development Until then, the 4 Ps, with some modifications, continue to serve

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