Page 13 - Preview-copy-Online-Marketing-English

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What we learn from this is that the components of the marketing mix can be used perfectly
well in online marketing, but that the interpretation is different.

In this book, we will see how to use the online marketing mix. At the end of the book you will
find a detailed online marketing mix.

1.2 The marketing mix in practice

Suppose, one fine day, you think of becoming an entrepreneur. You see an opportunity, but
how do you go about it, where do you start?

Product
Of course you start with your product. What products or services do you want to sell? And do
you want to develop and produce these products or services yourself, or will you buy products
and then sell them? What about the cost price of your product and what sales price can you
ask? You think about the quality of your product. Do you want to sell high quality products with
a corresponding high price, or are you going to sell products of a lower quality for which you
cannot ask a high selling price (but you can sell more of them!). Are you going to make a profit?

Location
Another decision you have to make concerns the sales location. Where and how will you sell your
product? Are you selling your product in one place only, for example your web shop, or are you
trying to find a wholesaler who will include your product in their range, which will allow you to
sell to hundreds of shops. How do you organise the packaging and shipping of your products?
Bear in mind that if you are going to sell your product through a wholesaler, you will need to
find a way to package it.

Bear in mind that if you are going to sell your product via a wholesaler, that wholesaler wants
to earn from your product (so you have to give part of your profit margin to the wholesaler).

Promotion
Everyone should know that you have a great product or service. So you have to promote your
product. How and where do you do that? Are you going to place advertisements, for example
in the newspaper or on the Internet? Should you participate in trade fairs, or do you want to
draw attention to your product by starting a promotional campaign on Facebook?

Every company uses this marketing mix, but every company, even if they sell the same product,
has a different interpretation of the mix. Here is an example. We will leave aside the P's of
personnel and presentation for the moment.

Example
Company A and B both sell perfumes. Company A has chosen to sell expensive, exclusive per-
fumes. Company B sells cheap perfumes. What does this mean for the marketing mix of these
companies? Take a look at the following overview.

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