Week Three - The Marketing Re-Mix

1. Consider a restaurant in Sturt Street Ballarat. Write down all the offline marketing activities you can think of and then start a separate list and write down all the online activities you can think of. What if any were the differences in the lists?
Offline marketing activities:

• Brochures
• Leaflets
• Banner ads
• Coupons. E.g. Get 20% off lunch on your second visit.
• Sponsorship from local sports club
• Publications in local newspaper/magazines
• Word of mouth
• Ad on local radio
• Ads in Yellow Pages, Whitepages and local directory

Online marketing activities:

• Direct email
• Web tiles on relevant websites. E.g. Ballarat tourism websites
• Webpage
• Online menus and bookings
• Testimonials from past patrons
• Attractive photos of the restaurant

Both offline and online methods of marketing communicate the same message, but together target a larger audience. E.g. Not all elderly citizens have access to the Internet, therefore and ad in the local newspaper might be more suitable. There are any major differences between the two, however, offline marketing can sometimes be more tangible (such as brochures and coupons) and online marketing more interactive as it is technology-based.

2. Consider two other products/services of your choice. Write down all the offline/online marketing possibilities you can think of.

Coffee shop in Melbourne CBD

Offline marketing activities:

• Word of mouth
• Attend networking events to spread awareness of the business
• Advertising in free local magazines/newspapers. E.g. City Weekly magazine and MX newspaper
• Billboards at major train stations/tram stops (if the business can afford it)
• Hand out coffee club cards. E.g. On your tenth purchase receive a FREE regular coffee
• Ad in Yellow Pages
• Hang up posters and flyers around CBD
• Get interviewed by local radio station or newspaper
• Use my car as a moving advertisement
• Sponsor a local sports team. E.g. Melbourne Victory
• Have 'customer of the month'. E.g. Hang a plague of the customer in the business to get other patrons excited

Online marketing activities:

• Join professional networking sites. E.g. LinkedIn
• Join social networking sites. E.g. Facebook
• Establish a website
• Use attractive photos such as a steaming and creamy hot latte, or a relaxing lounge area.
• Use inviting colours and soothing tones
• Place testimonials on website
• Draft a press release and include in as a link on website
• Publish the business's creation story online. E.g. 'Rags to riches'
• Send monthly e-newsletters to consumers

New line of soft drink

Offline marketing activities:

• Stands at supermarkets handing out free samples
• Word of mouth
• Radio
• Television ads on weekends/at night time
• Billboards at milk bars and supermarkets
• Sponsor a community event. E.g Fun run
• Media release
• Brochures at cafes/food courts/check-out counters

Online marketing activities:

• Establish a website
• Images of refreshing, thirst-quenching bottle of the new soft drink
• Audio of a 'fizzing' or bubbling' noise in the background
• Online competitions
• Direct emails

3. What makes a great online product from a marketer's point of view? How would you measure success?

From a marketer's point of view, a great online product must successfully fulfill needs of the target market, be easily differentiated from competitors' products, have high growth potential and have high returns in the future. The website must be user-friendly, clear and strong branding and appealing images and text. Success can be measure by how many hits the website receives on a monthly basis and the total revenue the product produces.

4. Preview the pricing of two products and consider some dynamic pricing models.

Dynamic pricing occurs when prices are free to move immediately in response to changes in supply and demand. Advances in computer hardware and software present a new dimension for the use of dynamic pricing (http://www.knowthis.com/)

Product #1: Shoes

Dynamic pricing can be used in a shoe shop where customers' use of loyalty cards triggers the store's computer to access customer information. If customers' characteristics match requirements in the software program they may be offered a special deal or discount on their next purchase of shoes.

Product #2: Airline ticket

Dynamic pricing can be used when airlines only have a few seats left on a flight and want to sell them at the last minute. They can then change the cost of the regular ticketed price for the seat to the discounted rate.

5. What are some of the issues these pricing models raise?

People may view dynamic pricing as 'price discrimination' as consumers can purchase goods or services at different costs. For example, a pensioner may book their airline ticket 21 days in advance, whereas a young traveler who is Internet savvy may purchase their ticket the day before at a heavily discounted rate. Therefore, the pensioner is unfairly charged a different price for the exact same product (http://www.utdallas.edu/).