So, you’ve come up with that world-class product designed to meet the exact needs of the market. However, the best books are not always the bestselling and that “out of this world” product can’t sell itself. Hence, as a business owner or marketer, the promotion mix strategy should always reverberate in your head. Because your target market segment needs information about your product or service and the reasons why they should go with your brand. Therefore, let’s talk about the promotion mix, and all the facts you need to know to establish one suitable for business.
What is the promotion mix
Promotion mix is a list of channels a company chooses to help them achieve a certain goal in the market. The communication in these channels must be compelling in order to attain reasonable market effectiveness. So, your selected promotional mix must be:
The promotion mix elements you choose must be the most appropriate while developing your promotion mix strategy.
Promotion mix elements
The promotion mix elements enable a company to promote their products effectively to its target market segment. Based on a company’s objectives and budget it allocates resources to the right elements. These elements are Advertisement, public relations, sales promotion, direct marketing, personal selling. Let’s get to the details of each.
It is a way companies communicate their product and services through paid commercials. Most times, a third party serves as the facilitator. So, a company gets its promotion to the third party’s platform, and the third party gets it to their viewers. However, companies shouldn’t do this randomly, they should select the platform that has their target market segment. Examples of advertisement media are television, billboard, radio, posters, mobile apps, emails, web pages.
This way companies try to promote a positive public image. This could be achieved by having promotion shows with third parties, inserting their news stories in the media, and press releases about their activities.
In this element of the promotion mix marketers try to boost sales through an afore determined limited market offering. For example, flash sales, coupons, recurring sales. Clearly, there are advantages to this. While new firms can use it to draw customers to themselves. Old ones, that have achieved good market penetration, can sustain the interest of their customers via it.
With methods like interactive consumer websites, emails, messaging firms can persuade customers into a call to action that prompts the customer to act. These channels of direct marketing produce results that are immediately measurable cos firms instantly get updated on customers’ interest.
Some firms feel that a direct face-to-face or over the phone interaction with their potential customers through agents like sales personnel is closer to the customer. This promotion mix element is called personal selling. It is the most traditional form of promotion. Clearly, for the face-to-face interaction there is a significant amount of investment in time from the customer and sales representative also. So, this might be less efficient than other elements.
PROMOTION MIX STRATEGY
Now that you know the promotion mix elements. Let’s look at how you can select the promotion mix that’s right for your company under the promotion mix strategy.
Determine your customers:
This should be priority in your promotion mix strategy. You have to know where to get your target market segment. Some signature behavior could help with this. For example, If you are a jewelry store owner that targets consumers whose yearly income are more than $120,000. Your selected promotion mix element will target people who make such amount yearly.
Determine your objectives:
This is the reason why you want to promote your product. Different companies have different objectives for their commercials. Examples are, acquainting a new product to the market, correcting a wrong impression, retailer persuasion to stock more of your product, communicate new features to existing market to enable product development.
Design your message:
In designing a message you have to consider both the content and the format. The content is the words, images and text used to pass your message to the customers while the format is the way you pass that idea. Different promotion mix rely on different format to communicate their message effectively. For example, while a web advertisement relies on colorful graphic images, personal selling might involve oratory charisma that will persuade the customers.
Make your budget:
Once you’ve garnered information about your market segment, then you use that as a guide to make your budget also take funds available to you into consideration.
Select your promotional mix:
After designing your message you need to select the promotion mix that will be best for your marketing campaign. So, you should consider the different promotion mix and know the ones that are best for you. For example, The promotion mix of a footwear store that makes a budget of $3,000 for their marketing campaign could be as follows.
50% sales promotion: $750 coupons, $750 worth of footwear for winners of their contest.
20% Advertisement: $600 for web advertisement.
20% public relations: $600 for press release.
Use elements of the selected mix to complement each other:
So, in the example, the store could use the elements in the mix to complement one another. For example, a web advertisement announcing their free coupons, and contest to their market segment. Then, a press release of the winners of the contest to the public.
Measure the results and make adjustments:
Clearly, a rise in the number of sales by your firm would serve as a good yardstick in the measurement of how effective your promotion mix has been. You adjust for more growth or elimination of an ineffective element.
IMPORTANCE OF PROMOTION MIX
The importance of promotion mix are as follows
Public presentation of your company helps consolidate the belief of legitimacy and permanence in the minds of the consumer.
Brand name reinforcement in consumers’ mind:
It is a common notion that something that gets repeated gets remembered and something that’s remembered gets done. So, in a promotional mix, especially advertisement, there is repetition of your brand to the consumer. And this can lead to your brand name being synonymous with that product. For example, in Nigeria, most people call every noodle in the market Indomie.
Increase in sales:
The most common reason why companies engage in promotion is to promote sales and this will therefore increase profit.
Companies can build strong relationships with retailers in that industry by creating a promotion mix targeted at them. Hence, this could help the company get a good market share of their market segment.
This is usually achieved by sales promotion. Some consumers are turned on by contests and by giving it to them. You can turn a dreary purchase into a livelier one.
FACTORS THAT AFFECT PROMOTION MIX
Different factors that affect promotion mix can be company-related, product-related, or customer-related. So, let’s look at these factors and know how they can influence your promotion mix.
There are different types of products. Some of the types are branded products, non-branded products, and new products. Clearly, marketers ought to use different elements of the promotion mix for any of the aforementioned product types. While advertising will be more suitable for branded products, personal selling might be the element of choice for non-branded products.
Consumer goods usually target more customers than industrial goods. So, advertisement and sales promotion are more appropriate for consumer goods while personal selling is more appropriate for industrial goods.
The target market segment:
The target market segment is a factor that can affect promotion mix. Hence, a firm which has distributed customers within a country can use social media or TV advertisement for their products and firms that has a single area of concentrated customers can just use personal selling.
Availability of funds:
This is a very important factor that affects all promotion mix. Personal selling is the cheapest in the cost spectrum of all promotion mix. Advertisement and sales promotion are costly and should be done by firms that can afford it. So, available funds will affect your choice of promotion mix greatly. Also, not only does funds affect your mix it also affects the duration of your promotion mix.
Some marketers lack experience in some promotion mix. So, they tend not to use it in their promotion campaign even when it’s vital to the success of that campaign.