The Marketing Mix and Spotify

For every business, the marketing mix is applicable. The mix comprises of internal factors that a business may control or influence in its favour to effectively operate. Traditionally, the mix has the 4P's and 4C's but for this blog. I will additionally explain the extended 3P's briefly and use Spotify as the case study.

In doing so, I will also compare how Spotify's position in the marketing mix fairs the business against a competitor, Napster.

Product (What the consumer may need)

The product refers to what the business is offering. The product can also be the provision of services. In the case of Spotify, its product is music provision. Spotify provides its members with a platform to listen to music, accessible online. The concept may seem simple but it has taken a lengthy amount of time to take off. To further advantage itself, Spotify introduced additional perks for its users through its premium service, allowing users to skip ads and listen to songs offline as well. Napster is the example of a competitor of Spotify that has seen multiple take overs and a case of bankruptcy but is still active.

Price (Cost to the consumer for the need)

The pricing structure established by Spotify is fairly simple. In it, it offers members two options, either the accessibility through the free service or by paying $11.99/month for the premium service.

Under the premium service, members have two additional options; either choose the premium for families allowing more than one person to share the account, dividing the payment of $17.99/month. Premium for students allows those members who are registered students to obtain a concession on the premium and pay only $5.99/month.

Napster follows a similar trend by providing paid services as well as a family plan service; however, they do not allow for free provision to listen to music, as is the case for Spotify.

The prices in the above picture may seem as being cheaper but this is because the amounts are listed in $US whereas the Spotify are in $AU. Napster can be seen to provide a free trial for its services.

Promotion (Communicating the product)

This is a primary factor for Spotify's success. The level of promotion carried out by Spotify regarding its features and its concept is what helped it create a large market base and prominent image.

Spotify promoted itself through word-of-mouth, Public Relations and co-marketing rather than focusing on big ad budgets. Being an internet supported application, Spotify focused on promoting online rather than through the television.

Spotify utilised NME, an online music magazine to promote itself. It also launched an online ad called 'Music takes you back'

Place (Convenience of buying the product/service)

Spotify is available for its user on all internet connected devices. From Windows to IOS to Android. This widespread accessibility allows ease of access and increased efficiency to use the Spotify application. This is the same for the ability to listen to music offline and without ads under the premium service.

The same level of accessibility is present for Napster.

People

The types of individuals employed by Spotify are linked to maintaining the application and the online domain itself. Having no specific offline product or service that would require individuals to work on people are present for the sales and marketing of Spotify which help enable its promotions effectively. The same if the case for Napster.

Process

The process established is very simple. It requires an individual with an email account to firstly make an account on Spotify. After doing so, they are now eligible for the free service. By further paying the listed amount for the best suited premium service, the individual is now set to listen to music without anymore channels to go through.

This is not the case for Napster which does not have the free service option hence, individuals would be required to create an account after which the required payments would need to be made only then allowing for the use of the application.

Physical Evidence

The Physical evidence for Spotify lies in the application itself. The application being installed on the respective device after which the person would login to access music. This is the physical evidence present for Spotify. It is not expected for it to be in any other form as it is an internet run application. The same is the case for Napster.

Though in my blog today, I have specifically chosen Napster to compare with, it is not the only competitor for Spotify. Other include iTunes and Music Prime. The qualities attributed to Spotify, however, helps it stand out amongst the others, allowing its fast growth.

Reference List:

Dave Chaffey, F. E.-C., 2016. Digital Marketing. 6th ed. Harlow: Pearson.

marketingmix, n.d. Marketing Mix 4C’s. [Online] Available at: http://marketingmix.co.uk/marketing-mix-4cs/ [Accessed 06 September 2017].

marketingmix, n.d. The Marketing Mix 4P’s and 7P’s Explained. [Online] Available at: http://marketingmix.co.uk/ [Accessed 07 September 2017].

Also used the PowerPoint of week 5