PROMOTIONAL MIX

Marketing Theory Promotional Mix



Marketing Theory Promotional Mix

Introduction

In today's competitive world, companies are fighting hard to attain maximum market share and create brand awareness amongst the target market. The role of marketing in such a scenario is crucial. Every day, marketers have to take decisive steps with regard to the company's promotional plans (The Chartered Institute of Marketing, 2009, p.2). The right use of promotional tools can determine the success of a company. In the marketplace, there is no guarantee of the effectiveness of a single promotional tool; hence a marketer has to use experience and relevant marketing theories to select an amalgamation of options from the promotional mix (The Chartered Institute of Marketing, 2009, p.2).

The 'promotional mix' is a concept that encompasses a set of tools that businesses employ to convey the advantages of their products or services to consumers. The promotional mix is a part of the broader concept 'marketing mix' which are the 4Ps of marketing (The Chartered Institute of Marketing, 2009, p.2). Out of the 4Ps of marketing i.e. product, price and placement, one is promotion. This factor of promotion then unfolds into more strategies, which make up the promotional mix.

The importance of the promotional mix can be judged by the fact that if there's no communication between a business and its consumers, the product or service is as good as nonexistent. This is because unless and until a consumer is aware of the brand, he or she will not buy it. Hence, sales and profits of a business depend heavily on the promotional activities of a company (The Chartered Institute of Marketing, 2009, p.2). There are five tools that make up the promotional mix. These include advertising, public relations, sales promotions, direct marketing and personal selling. The key is to use the right and structured combination of these tools because, in isolation the tools do not normally perform that well (The Chartered Institute of Marketing, 2009, p.3). It is also important to select the right promotional activities for the business at the right time. Selection of the promotional activities depends on the target market, the budget and the message that the business wants to communicate (The Chartered Institute of Marketing, 2009, p.3). Also, a promotional mix is optimum if, at minimum costs, it is maximizing promotional objectives.

Tools of Promotional Mix

As mentioned above, there are five tools in the marketing promotional mix. These have been discussed briefly below.

Advertising

Advertising incorporates using paid media to place the communication message. The basic objectives of using advertising in businesses are for promotion, support, competition, persuasion and as reminders of the product (www.learnmarketing.net). There are two types of advertising, i.e., below and above the line advertising. In below the line advertising, there is direct mail, sales promotion and sponsorships whereas above the line advertising includes TV, newspaper, cinema and radio (www.learnmarketing.net).

Sales Promotion

This promotional tool increases short term sales and in-store or web traffic. The methods used for sales promotion are discounts, special offers, point of sales, loyalty cards and packaging promotions ...