Few businesses would ever only use one method of promotion. Instead, a business or firm with have a mixture of activities otherwise known as the Promotional Mix.
So, there is the definition of the promotional mix. Now, on all information to do with promotional in the marketing mix , check this link:
Here is Promotion, which is part of the marketing mix. Now don’t get confused with the marketing mix and the promotional mix. The marketing mix consists of four categories:
– Product (or service)
Now, the Promotion side of the marketing mix can be described using the promotional mix.
Promotion and Market Research
In order to develop the best promotional campaign, it is important that market research, is carried out so that the business has the neccssary knowledge about the product and the market. The more information the business has about its customers and its competitors, the easier it will be to develop an effective promotional campaign.
– If the business knows who is likely to buy their product, it can determine its target audience and target that group with its promotional activites and campaigns.
– If the business knows what makes its product attractive to customers, it can use this knowledge to their advanatage and reinforce the promotional message they are trying to percieve.
– If the business understands why potiential customers are going for revial products, they can specifically design promotional material to address these issues.
Promotion needs to be effective
When I say ‘promotion needs to be effective’ I mean there needs to be a balance between coverage, cost and results. For example, TV advertising is extremely expensive but has huge coverage. However, if the target consumers are a small segment of the population then the coverage may be wasted.
Businesses need to constantly monitor promotional activity to see if it is having an effect or the effect the business wanted. A prime time TV advert may reach a huge audience but is ineffective if it fails to increase sales.
There are many ways to monitor a promotional campaign. There’s the obvious of seeing if the promotion increases sales. Other ways include using market research to see if the public’s perception on the product or service has changed due to the campaign.
A Quick list of Promotion Methods
Advertising, Direct Selling, Direct Marketing, Merchandising, Sales Promotion and Public Relations.
How Important is Promotion for a Business?
It’s very important, as how else would the customers know what the business is and what the products or service are? However, existing businesses should try to spend less on promotion than new businesses.
The importance of promotion depends on the following factors:
The competitiveness of the market
The fewer the competitors, the fewer choices the customer has available to buy in the market, the less need to persuade the customer to buy.
Availability of Product/Service
If the product is in short supply there is little need to promote it. However, when there are several products competing for customer approval, promotion becomes very important.
How easily the product can be differentiated in the market
If the product or service has obvious differences, the customer will notice them differences and there may be less need for promotion.
The stage of the product life cycle
Products in their maturity stages tend to have less promotion while a new product usually needs promotional support. Promotion will tell customers the new product is available, it will persuade them to try the new product and if the product has been altered, promotion will tell customers of the changes.
Long-Term Relationship between businesses tend to have low promotional levels
Short-Term Relationships have much more promotion used.
In industrial markets where one business is selling to another, there may be less need for promotion. This is particularly true where a business is supplying products to the customer’s specification and has establish a long-term relationship with the buyer.