Posts Tagged ‘Marketing’

What is the Promotional Mix

While many marketing students and executives are familiar with the term marketing mix (often called the 4 P’s and determined as Product, price, place and Promotion) the term promotional mix is less well known but is nonetheless a powerful toolset to facilitate sales and market awareness.

The promotional mix refers to the communication methods used to provide information to your customers and the market. Communication to your customers is vital if you want them to know about you. A failure to communicate about your product could result in low sales and an underperforming organization.

Difference between the promotional mix and the marketing mix.

While similar these two business terms relate to different aspects of marketing. The marketing mix takes a holistic view of your marketing opportunities and methods. The Promotional mix looks at what one of those elements in detail – promotion. Similar to the marketing mix the elements of the Promotions mix can all be used in various degrees.

Like the marketing mix the promotional mix is made up of a number of parts:

Advertising
Personal Selling
Promotions
Public Relations

Advertising

There is a vast array of advertising opportunities from online, newspaper, TV and radio to name but a few. While advertising has become more of an art form over the last 50 years its premise is still the same using a medium to get your message across. Your message could be the launch of a new product, brand awareness, special offers – the key is your communicating about your organization to the market.

Personal Selling

This is direct selling to potential buyers. Examples of personal selling include cold calling or door to door selling through to the example of a cosmetics counter in a department store. All involve building a relationship up with the customer (usually a short one!) and making the sale.

Promotions

As we discussed in our article on Pricing strategies for business promotions can be a vital sales tool – and can in particular be extremely useful in highly competitive markets where price is a determining factor. These promotions could include such things as two for one offers, cost discounts or introductory offers.

Pricing Strategies for business

One of the fundamental concepts for any business is the selling of its products or services – this will in most cases involve the customer exchanging money in return for the product. The level at which this money is set is termed the price. Prices are not fixed and can be subjected to strategies and influenced by market conditions.

Pricing Strategies

Pricing strategies usually fall into two camps –

Firstly New Product Pricing strategies exist to support the introduction of products into the marketplace – these strategies usually support marketing from a market awareness perspective and also to get a foothold with consumers – examples of these pricing strategies include introductory discounts or where the product offers some unique qualities which can exert a premium – the price may be set to represent this.

Existing product pricing strategies – Pricing strategies for existing products will typically mitigate market conditions – this could include tracking the market rate for a given product (e.g. suppliers of fuel for example follow the market) – price reductions to secure market share.

Once a strategy is established – a business may deploy short term tactics to react to the market – this could be in the form of promotional offers (buy one get one free) to discounts.

Introduction to Business pricing