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Google Marketing Mix Case Study

Alphabet (Google) marketing mix, also referred to as Alphabet (Google) 7Ps of marketing comprises elements of the marketing mix that consists of product, place, price, promotion, process, people and physical evidence.

Product.

Alphabet Inc. is a holding company and its portfolio comprises nine companies. Products and services offered by these companies are illustrated in table below:

Company

Products and services
GoogleSearch, Android, Maps, Chrome, YouTube, Google Play, and Gmail
WaymoSelf-driving cars
VerilyMiniaturized CGM, Smart Lens Program, Debug, Retinal Imaging etc.
CalicoResearch and  development projects focused on ageing
NestIndoor and outdoor cameras, learning thermostats, and smoke alarms
AccessHigh-speed fiber internet access across the U.S
XProjects associated with “moonshot” technologies
Capital GEquity investment fund
GVVenture capital

Companies in Alphabet portfolio and products and services offered by them

It is important to note that although Alphabet product portfolio is vast and diverse, Google remains as its core business accounting for 88% of total revenues in 2016 through advertising[1]

Place. Being an e-commerce and internet company, Google relies on online sales channel for the sales of its products and services. In 2015 the company opened its first physical store and up to date, there are only a few Google physical stores in various formats in North America and the UK.

Google’s first physical store in London, is a “shop in a shop” located inside the Currys PC World store on Tottenham Court. “In addition to showcasing Google merchandise—Chromebooks, Chromecasts, Android phones, and so on—the space includes a “Doodle Wall” for customers to scribble on with digital spray paint, a “Chromecast Pod” for movie viewing, and a “Portal” for touring the planet via Google Earth.”[2]

It has to be noted that place element of the marketing mix does not relate to certain companies belonging to Alphabet portfolio such as Verily, Calico, Access and X at this stage, because there companies yet to offer specific products and services to the market.

Price. Google pricing strategy varies across specific products and services and includes the following:

  1. Fremium pricing. Google offers a wide range of products and services free of charge, but charges money for proprietary features and enhanced functionality. For example, users are offered 15GB of storage space in total free of charge for Gmail, Drive and other services, and users are required to pay monthly fees to increase this space.
  2. Premium pricing. Google uses premium pricing for its AdSense and a range of other services. It has been noted that the cost per click for the most competitive keywords such as Online Colleges and Psychic for Free amounted to USD95.65 and USD94.61 respectively.[3] Although the price of each specific keyword results from the competition, publishers receive only 68% and Google keeps the remaining 32%. The internet giant is safe in the knowledge that it can charge a relatively higher price due to its clear leadership and competitive advantage in search segment.
  3. Value-based pricing. Alphabet applies value-based pricing in relation to Fiber Internet and cable television service and a set of other products and services. Specifically, the company takes into account direct and indirect competition sets prices according to perceived value customers associate with its products and services.

Alphabet Inc. (Google) Reportcontains a full analysis of Alphabet (Google) marketing mix (Alphabet (Google) 7Ps of marketing) and Alphabet (Google) marketing strategy in general. The report illustrates the application of the major analytical strategic frameworks in business studies such as SWOT, PESTEL, Porter’s Five Forces, Value Chain analysis and McKinsey 7S Model on Alphabet Inc. Moreover, the report contains analyses of Alphabet leadership, organizational structure and organizational culture. The report also comprises discussions of Alphabet business strategy and addresses issues of corporate social responsibility.

[1] Annual Report (2016) Alphabet Inc.

[2] Griswold, A. (2015) “Google’s First Physical Store Is Very Google-y” Slate, Available at: http://www.slate.com/blogs/moneybox/2015/03/11/google_opens_first_physical_store_online_shopping_is_moving_offline.html

[3] High paying google adsense keywords 2017 (2016) Tech On Road, Available at: http://techonroad.com/high-paying-google-adsense-keywords-2016/

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As many of you might already know that Google started with a set of few intelligent rules. Growing from there, it has developed into a new business, which has made it the world's largest search engine. They have also developed applications such as Google Earth, Gmail, Google Video, and Google Map, which have also won different awards. Google Inc. is a company that has started from scratch, and now has won over the previous leading search engines like Yahoo, Lycos, AltaVista, and Excite. Not to forget they have also won against a giant company Microsoft.

What is the Google marketing strategy? Ever wonder that with so many search engines out there, why is Google the first? Well it is not all because of the marketing strategy of Google; there is one aspect in the marketing strategy that makes it so great. It’s the little things combined, as you should know what will boost your sale and what will not. Not every human is the same, thus you need to mix up the likings of all the different choices, and make it into something likeable by all. This might sound difficult, but it is simple really, all you need to do is keep a few tips and tricks in mind.

The only way to understand, how and why Google is winning over all the other search engines, is to go over the marketing strategy of Google. Their strategy might be hard to understand at first, but you will see how they follow the pattern of smart decision-making. Google is a mix of excellent marketing ideas, smart choices, and the live on the edge and take risks, great advisors, and they provide us with great products. Read below to understand in detail the marketing strategy of Google.

You can download excellent powerpoint slides on business strategy and marketing strategy here.

They use the power of less, the power of less means they give you a clean, simple, and interference free search page. When you open the Google page, you will see a Google logo and right in the middle is the search bar, which is fast in loading, and easily visible. During the early years, this was the only feature, because of slow internet connections. Google was also preferred because the other search engines were just full of confusing stuff, filled with ads and useless features.

The second marketing strategy of Google is, they have posted no ads on the website, just preferences. The makers of Google understand what the people want, and give them exactly that, without any confusions. They understand that when people want to find some information, they do not want it crowded it with other things that might distract their work. The best way to make users happy, and make sure they are coming back is to give them exactly what they want.

As you know that Google offers you reliable sources, not completely, but most of the time, so it gets things done. As a search engine, it is the best it can do. There is this marketing strategy of Google, they do direct marketing, not brand marketing. There are hundreds and thousands of business that market themselves using Google. That is how it grows, no matter if you have a small or a large frame business, you will use Google to platform it.

Another advantage that is a marketing strategy of Google is that it has a long-standing reputation. According to the psychology of people, they want things that are better, no matter how slightly better they are. Currently, 60% of all the searches around the world are done by Google, which means the strategy works in a way.

You can download excellent powerpoint slides on business strategy and marketing strategy here.

Another main component in marketing strategy of Google is that they offer the zero risk free entry policy. This means that you provide the users with some free use, which will make it better than the other products out there, and then they can buy more to get more. For e.g. when Gmail came out, it was slightly better than its competitors were as it offered 1GB free space for mail, as its rival company was charging people for that.

In the same marketing strategy of Google, they offer free services, which is a compelling technique. This way people become loyal to their services. In addition, to use many features of Google you must have a Gmail account, this is how they sell.

The power of the vision is the next marketing strategy of Google, which means to be able to sell something that people do not want. To see the bigger picture, thinking about the future, as what people will need. You probably do not know when Google started there was not much use of it, as people did not know that to do with it. Then as the time went by, slowly people figured out that they needed Google, for more than one thing. Marketing strategy of Google is strong as it collected all the data of the world in one place and presents it to you when you want it.

To understand the marketing strategy of Google better you need to look into the business model of Google. As you might not know, Google has a pay-per-click concept, every time you click on it, they get money, but not yours, how cool is that. Yes, it is a risky business, but the strategy is brilliant. As Google charges the site owners, for whom you are looking for. Ad Words is the biggest source of income for Google Inc.

Google might get slim amount of income from Google Maps, Google Video, Gmail, and Google Earth, but they have to lose some to get some. This is a remarkable marketing strategy of Google, as it is also used by other companies, and has turned out to be an excellent strategy. Marketing strategy of Google is to work more on brand building, than focusing on income and profits. This strategy worked amazingly, as it was the main strength in ensuring initial public offering at the NASDAQ (American stock exchange).

You can download excellent powerpoint slides on business strategy and marketing strategy here.

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