P & G Shifts Marketing Dollars to Online, Mobile - Essay Example

? Article Review Article Review Introduction The article chosen for review in this report is titled as “P & G Shifts Marketing Dollars to Online, Mobile: World's Largest Advertiser Says as Much as 35 % of Ad Budget Going to Digital Media”. The article was published online on Wall Street Journal’s official website on August 01, 2013. The authors of the article are Serena NG and Suzanne Vranica. The article discusses the shift in marketing strategies of P & G and how the company plans to influence its target customers. The review of the article reveals that the company wants to introduce digital marketing as a means of targeting its customer base in the United States. Analysis P & G, like its other competitors, has been following a combination of traditional and innovative marketing strategy for its products. However, keeping in view the market data and research findings of changing trends in consumers’ lifestyle, the management has decided to adjust its strategies accordingly (Serena & Vranica, 2013). After reading the article, it is inferred that the company is planning to spend more on online marketing activities of its products, owing to the fact that a vast number of Americans are expected to prefer spending more time on the internet rather than watching television. This shift in the consumers’ behaviour has in turn influenced P & G’s marketing experts to focus more on digital marketing concept (Serena & Vranica, 2013). The digital marketing concept, which involves the use of internet and mobile as a marketing channel, has been considered by the company as a replacement of its marketing campaigns on television (Ryan & Jones, 2012; Hoffman & Novak, 1996; Egan, 2007). The fact that digital marketing is cheaper and, with consumers spending more time on the internet, is more targeted, the company has aimed at spending one third of its total budget for marketing on the online advertisement and marketing campaigns in the United States (Serena & Vranica, 2013). The decision to switch from television and other traditional marketing channels to internet and mobile can be viewed as an intelligent one, since the marketing mix for the company can be developed in a more prudent manner (Ryan & Jones, 2012). As for instance, by marketing its products online, the company will be able to target its customers and inform them about products in a much more convincing and effective manner. Moreover, it will be possible for the customers to obtain information as per their respective needs, because the review of literature pertaining to digital marketing suggests that internet is an interactive marketing medium and is considered as a many-to-many model, in comparison with traditional one-to-many marketing channels (Silva & Vassiljev, 2011; Ryan & Jones, 2012). According to Hoffman and Novak (1996), internet as a marketing medium is a proficient means of communicating and advertising a product to target customers. Keeping in view the concept of “flow” which is defined as a process of optimal flow by Csikszentmihalyi (1990), Hoffman and Novak (1996) state that “when in flow in a particular Web site, a consumer will be more likely to remember the brand name, feel good about the brand, and be more likely to return on a subsequent occasion.” (p.2) These attributes of internet as a marketing medium have been taken into consideration by P & G’s marketing team, and in this regard the Chief Executive of the company has stated that, “digital is incredibly effective, and we're doing more” (Serena & Vranica, 2013). The fact that there are some brands of the company, such as Tide and Pantene (Serena & Vranica, 2013), which have lost their respective market shares, and as a consequence the company has decided to introduce innovative strategies that may lead to capturing a significant market share in the United States. In addition to this, it is also pertinent to mention here that the company’s Chief Executive regards this strategic move of the company as a way to get closer to customers. He stated that “The bottom line is we need and want to be where the consumer is, and increasingly that is online and mobile.” (Serena & Vranica, 2013). Although the decision to go for intense digital marketing strategy appears wise and can be regarded as the need of the hour, but, it is also important that the company does not lose its focus entirely from the telemarketing campaigns, because it has earned its brands’ names and recognition through television and print media. As noted earlier, the company has decided to spend nearly one third of its marketing budget on digital marketing campaigns. Coming back to the digital marketing strategy of P & G, it is a well-established fact that the company is aiming at attaining certain objectives, which are getting closer to consumers, innovating its products, efficient branding and carrying out cost efficient marketing activities. Successful attainment of all these objectives rests largely on the right marketing mix for the products and marketing activities of the company (Dominici, 2009). Since the Chief Executive of the company noted in his statement that the purpose is to come close to consumers (Serena & Vranica, 2013), therefore appropriate adjustments in the traditional marketing mix will have to be made to suit digital marketing campaign (Peattie & Peters, 1997). This implies that apart from the existing Ps in the marketing mix, the marketers will be required to incorporate new Ps to ensure that the accurate information is delivered to consumers and in a timely and targeted manner (Egan, 2007; Peattie & Peters, 1997). In this regard, it is pertinent to take into consideration 4 additional Ps, which have been proposed by National Taiwan University (Goldsmith, 1999). These Ps are Precision, Payment, Personalization and Push and Pull factors. These 4 Ps are presented in light of the specific requirements of the marketing activities over the internet. Conclusion In short, the company’s strategy to innovate its marketing strategy is a bold step, but it needs careful consideration of specific prerequisites of e-marketing. Following the additional 4 Ps for e-marketing, a new paradigm for digital marketing will be available for P & G, and the objectives of the company will be attained in a more comprehensive and efficient manner. List of References Dominici, G., 2009. From Marketing Mix to E-Marketing Mix: a Literature Overview and Classification. International Journal of Business and Marketing, 4(9), pp.17-24. Egan, J., 2007. Marketing Communications. London: Thomson Learning. Goldsmith, R.E., 1999. The Personalized Marketplace: Beyond the 4Ps. Marketing Intelligence & Planning, 17(4), pp.178-85. Hoffman, D.L. & Novak, T.P., 1996. Marketing in Hypermedia Computer-Mediated Environments: Conceptual Foundations. Journal of Marketing, 60, pp.50-68. Peattie, K. & Peters, L., 1997. The marketing mix in the third age of computing. Marketing Intelligence & Planning, 15(3), pp.142-50. Ryan, D. & Jones, C., 2012. Understanding Digital Marketing: Marketing Strategies for Engaging the digital Generation. Kogan Page Limited: Philadelphia. Serena, N. & Vranica, S., 2013. P&G Shifts Marketing Dollars to Online, Mobile. [Online] Available at: http://online.wsj.com/news/articles/SB10001424127887323681904578641993173406444 [Accessed 7 December 2013]. Silva, J.A. & Vassiljev, P., 2011. International Companies’ Perception of Digital Marketing Strategies and Their Implementation. Lund: Lund University. Read More