Rolling out a new product can be challenging for businesses, but you can make your strategies more effective by harnessing your promotional mix. With it, you can increase the brand’s awareness among your target audience, stay relevant, and boost your conversion by getting the right people to purchase. Read on to learn more about the definition of promotional mix and what it entails.
In This Article:
Understand Promotional Mix and Its Most Important Elements
Understanding the Marketing Mix
To define “promotional mix” correctly, it’s important to establish its differences from “marketing mix.” Many tend to use these words interchangeably, but they don’t mean the same thing.
Promotional mix marketing is actually one part of the broader marketing mix, which has four elements. They call it the 4Ps:
Your product is what your company’s offering the market to fulfill a need. Questions marketers have to answer when it comes to a product include:
- How will your product provide satisfaction to customers? Marketers should evaluate if there’s anything missing or if the product contains elements not seen as valuable to the customer base targeted by their client.
- How will the customer be able to interact with the product?
- Will the customers have different options to choose from?
- Is the look of the product appealing or enticing the customers to spend money on it?
- How different is it from anything being offered by competitors?
Companies must figure out the value of the product they’re offering. It’s important to consider the following questions when coming up with a final figure:
- What are the competitors charging for similar products?
- Will the customers buy a product at a higher price point? What features need to be there to make this happen?
- Will there be some sort of discount offered to early buyers or a mass promotion offered for those who buy within a certain window?
- How much profit will you make or lose by raising or lowering the price point?
How will customers access a product? Is it only going to through physical or online stores?
Price is also a factor here. Businesses interested in increasing foot traffic may want to offer an in-store discount only. This can also work for companies looking to boost the e-commerce side of their business by offering online-only prices for products.
The promotion covers all the different ways you’ll market your product to the public. These can include TV ads, print and online advertising, and various PR efforts. This is what the promotional mix refers to.
Promotional Mix Definition
What is the promotional mix? It refers to a combination of different advertising strategies that allows you to achieve specific goals for your product.
It usually has the following objectives:
1. Raise Demand for Your Product
You want to see increased interest and sales from the efforts in marketing your product. Promotions during Christmas should result in higher sales during the season. The marketed product may also sell faster than the non-marketed ones.
2. Inform Customers about Your Product
Your audience should understand exactly what a product does. If they need a new phone with a better camera, they should be able to tell if the camera specs of the model you’re selling are an upgrade. Health-conscious consumers should know if your new breakfast bar contains less fattening ingredients than other options in the market.
3. Distinguish Your Product in the Marketplace
It’s important consumers can tell your product apart from other similar items for sale. For example, the product may offer something missing from your competitors’ products. Maybe your shampoo does a better job moisturizing curly hair, or your wireless earbuds last through the heaviest exercise workout.
Adjust your tactics if you find yourself not achieving these objectives. It takes all three to launch a new product and keep it performing successfully through your promotional mix efforts.
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Promotional Mix Elements
What are the different elements of the promotional mix? Every campaign needs to have these five:
You’re getting the word out through different media about your product. This varies depending on where your target audience is likely to be and how effective your efforts are in pushing promotions through that space.
2. Public Relations
Public relations encompasses your different strategies used to maintain relationships with the general audience. You’re also passing the public the information you think they need when deciding whether or not to purchase your product.
3. Direct Marketing
As one of the 5 elements of the promotional mix, this covers everything you do to reach out to customers directly. These include targeted email blasts, fliers through the mail or within different publications, direct phone calls to consumers, or paid promotional segments on TV.
4. Personal Selling
Here, you’re making a personal appeal to your audience. You’re doing this by meeting potential customers in person. For this reason, personal selling, unlike other promotional mix elements, is independent of the Internet. You can do it in different ways such as attending seminars and organizing training sessions while teaching customers how to use your product.
It is a strategy that encourages customers to purchase your product. It can help create trust between your business and target market. You can use coupons, online discount codes, or rebates to accomplish this.
Adjusting Your Promotional Mix Strategy
Your promotional mix needs to change from time to time. For example, it depends on what stage of the product life cycle you’re in.
Here are some questions you may ask during the product lifecycle:
- When should I be spending the most money on my promotional mix?
- At which stage of the product lifecycle is the least amount of money spent on the promotional mix?
- How much should I still be spending if it’s time for the product to be retired?
Below, meanwhile, are the different stages of the product lifecycle:
1. Introduction Stage
Here, you’re just rolling out your product to consumers for the first time. If you’re a new business with no brand awareness in the marketplace, you must come up with strategies around where your target audience resides and the best use of your dollars to reach them. That could be through placing ads in search engines like Google or spreading the word about your product on social media. You can use influencers on platforms like YouTube or Instagram.
2. Growth Stage
Your product starts gaining brand awareness, and you begin seeing sales pick up. You’ll want to capitalize on this by emphasizing any new features you’re offering or fixes you’ve made in response to consumer complaints. That encourages your current customers to remain loyal while attracting the attention of newer consumers who have been holding back on trying out your product.
3. Maturity Stage
You’ve reached the peak of your sales. You start seeing your position in the market challenged by other competitors. They’re countering your advertising efforts by trying to lure your customers away with new discounts or features you’re not offering. You’re finding it more difficult to hold on to your share of the market. You may be losing your loyal customers. Marketing may start focusing on emphasizing your reliability and status as a longtime leader in that space.
4. Decline Stage
Sales continue to decline at a steady pace with no end in sight. You begin announcing the retirement of certain product lines that no longer help you meet your target revenue goals. You may scale back your marketing efforts or eliminate them as you focus on putting something new in the marketplace and starting the product life cycle all over again.
Don’t forget to download, save, or share this handy infographic for reference:
Check out this video about the elements of a promotional mix:
Your own promotional mix experience may differ depending on the conditions you face. Your product could perform well enough to resist entering the decline stage. It may also underperform, never achieving a real peak. That’s why it pays to track each element. Staying aware of successful efforts and getting rid of what’s not working give your company the best chance of launching and maintaining a successful product.
What are the different marketing mix examples you’ve tried for your business? Share them with us in the comments section below.