Assess how Spotify competes with traditional and online music providers by reviewing the approaches it uses for different elements of the marketing mix.

Spotify is streaming music service that was founded in 2006 in Sweden, and it was an innovator of marketing methods and subscription choice, these are aspects of how Spotify applied marketing mix.

Product:

Before the main product of Spotify used for ‘free’ Peer to peer music sharing service, then it adds the choice of paid service that can be download or subscript music online, expect the main service, Spotify also provide other functions that increased the value of service, such as the shared music with friends, offline listen to music(Spotify，2017). Spotify also has their personalised functions that they will create an individual taste music playlist. All of those products can achieve higher customer satisfaction and have great advantages when competing with their competitors, such as APPLE. Moreover, they also published a new music service which named PlayStation Music that corporate with other company.

Price:

Spotify operates a freemium model and the fixed monthly model, they used freemium model to attract the customer who does not want pay for the website(Spotify，2017). The fixed monthly model is aimed for different people, their price plan is target different age and others, such as the students and family will have different price and service(Spotify，2017).

Place:

Spotify not only can use on the website, it also has their own APP that could be download from the smart phone, it also can be used through Social media(Spotify，2017).

Promotion

Spotify used several approaches to promote their brand, but their promotion is not the big advertising, they have great Public Relation, World of month spread and corporate marketing. Firstly, Spotify corporate with BMW, and they create an activity named ‘American Road Trip’ that based on their choice to generate a custom playlist and put it on social media to share. Secondly, Spotify keeps the free service of invitation which not only can be good at managing the increase, but it also is useful in creating a viral elements service. Lastly, they also used social media to promote, such as Facebook, Twitter and the YOUTUBE(Spotify，2017).

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