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Promotional Mix 10 Minute Guide Promotional Mix What it is The challenge is to select the right The 'promotional mix' is a term mix of promotional activities to suit used to describe the set of tools that your particular business at a particular a business can use to communicate time – and to then use it correctly to effectively the benefits of its products achieve a result. The combination or services to its customers. of tools you use will depend on the target audience, the message you The promotional mix includes wish to communicate and the budget the following tools – you make available. There would be 3 advertising little point in advertising new gas 3 public relations boilers in a fashion magazine – much 3 sales promotion more appropriate to advertise in a trade 3 direct marketing magazine for builders and gas fitters. 3 personal selling Here is a 10-step checklist for The promotional mix is part of the developing and managing your wider marketing mix. To find out about promotional mix. the marketing mix see the 10-minute 1. Decide how the products and Marketing Mix. services you provide can be 'packaged' together. The image Why it is important of your business is formed by the If customers don't know what way you promote the elements of products and services you provide, the marketing mix – your products, then your business will not survive prices and the places through which in today’s competitive marketplace. you sell. It is often helpful to think Effective communication with your about promoting the business as customers is vital to ensure that your opposed to a single product or business generates sales and profits. service. If you need to think more about the marketing mix before By taking the time to develop and going any further, take a look at the implement an appropriate promotional 10-minute Marketing Mix briefing. mix, you will stimulate your target 2. Develop a profile of the target audience to buy your products or audience for the message you services - and manage this within will communicate. Who is the a budget you can afford. target audience? This goes beyond a simple customer list. Is it What you should do consumers, businesses or members A successful promotional mix uses of the channel (such as distributors) a balance of its five tools in a planned you are using to get your product to and structured way – a single tool the end customer? Is it the wider rarely works well in isolation. stakeholder audience? www.cim.co.uk The Chartered Institute of Marketing 2004 10 Minute Guide: Promotional Mix 3. Decide on the message to use. Advertising – There are three main Are you trying to differentiate, reasons for advertising – remind, inform or persuade? Set 3 to provide your target audience with an objective for what should be information (creating awareness) achieved. Be clear about the 3 to persuade them to buy from benefits that you want to promote. you (by promoting product and 4. Decide what image of the company benefits) product/service/business you 3 to reinforce your existence want your audience to retain. (by consistently repeating 5. Decide on a budget. This is key messages). often how much you can afford given projected sales for the Research shows that people need to product or service. see an advertisement at least seven 6. Decide how the message should times before it starts to mean anything be delivered. To help you to decide to them. So, to be effective, advertising what aspects of the promotional mix needs to be conducted regularly in a to use, think about taking your consistent and 'recognisable' manner. customers on a journey that starts by creating awareness about your It can therefore be quite costly. Typical business, through obtaining advertising media include Yellow Pages, information about the products local newspapers, radio, trade journals, and services you provide, and exhibitions and websites. It is also ends by generating a sale. Each difficult to assess how much business is component of the mix will achieve achieved through 'paid-for' advertising a different result, so your choice unless you include some form of must be based on real objectives monitoring scheme (such as a discount for your business. What promotional voucher) within the advertisement. tools should be used? When should communications happen? How Public relations – Publicity is something often? Is the message consistent? that 'happens' to a company and the 7. Decide what actions you want result may be good or bad. Public your audience to take as a result relations (or PR) involve a sustained of receiving your communication. attempt to develop your reputation as It isn’t always ‘place an order’. a business by using the media to help 8. Put in place a means of measuring create the image you desire. It is a way and controlling the plan once it is of keeping the business in your developed. Who will be responsible customers’ eyes. for dealing with the agency or media? Who will be responsible News or press releases can be for checking that promotional distributed to the media to announce, activity happens as planned? for example, new product launches, 9. Undertake your promotional a change in opening times or company plan. Be consistent in what you successes. Articles can be distributed to say and how you say it. trade journals or local newspapers, 10. Measure what you have and sponsorship or charitable donations achieved against the original can help to position your business more objectives that you set. prominently in the market place than your competitors. Attendance at What you need to know exhibitions and seminars can also To use the promotional mix effectively, help to promote the image of your you need to understand a little bit business to a chosen target audience. more about each of the five tools and how you could use them to achieve your objectives. www.cim.co.uk The Chartered Institute of Marketing 2004 10 Minute Guide: Promotional Mix If you feel confident dealing with the Alternatively, you can buy a mailing media yourself, then public relations list of potential customers that is can be a very cost-effective method of tailored to your precise specification. promoting your business. For example, if you were selling 'up- market' motorbikes and associated Sales promotion – This activity is best products, you could buy a mailing described as a specific, usually short- list that provided details of men over term, promotion that is 'over and 40 years old, who own a bike, live in a above' what you would normally certain postcode area and have a salary provide to the customer (e.g. buy one, of above £25,000. The cost of buying get one free). this list may be high, but if you get a good response rate from your mailing When used effectively, sales promotions activity to this group, then the expense can help to move old stock, counteract would be considered to be worthwhile. competitor activity, merchandise new products, encourage repeat buying and Be aware that some false addresses motivate your staff. They can also be may be included in a purchased list so monitored, so the success of a that the seller of the list can verify the particular sales promotion can mailing activity that takes place and be measured over time. stop theft of a list. Sales promotions are a good way of Personal selling – This is the most attracting new customers. However, effective form of promotion because it on their own they are unlikely to allows your approach to be tailored to build customer loyalty or change the needs of an individual customer. their longer term buying habits. The Getting a sale is ultimately extremely type of promotion selected also important, but the process involves a has to be relevant to your target lot more than this. It is about having a customers as well as to your own constructive dialogue with customers to marketing objectives. listen to their needs, promote product & company benefits on an individual Direct marketing – Direct marketing basis, answer any questions, resolve is an increasingly popular technique any problems and get their feedback as it enables you to target specific before clinching a sale. customer groups very accurately. It is a flexible way to deliver your message Face-to-face, a sales person can and, because each letter can be build a relationship with the customer - personalised, the chances of a understanding their needs and feeding response are greatly improved. The back this knowledge to the business to overall success of a campaign can also improve products, customer service be directly measured in terms of the standards, competitor knowledge etc. number of responses received. Employing a sales person is a costly exercise in the first instance, but it is You can collect information on one that will provide a pay back, customers and use this to build usually within 1-2 years. up your own 'in-house' database. Although this can be time-consuming, the information gathered will be accurate and relevant to you, and can be relatively easily kept up to date. www.cim.co.uk The Chartered Institute of Marketing 2004 10 Minute Guide: Promotional Mix For owner/managers of small businesses Where to find out more who may not have sufficient resources You can use the terms described in this to employ such staff, do not forget that checklist in the search facility provided a personal approach to customers is to conduct a search of this site. For still appreciated and is an important more on the promotional mix, part of any business development try looking at: strategy.
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