Promotion: The Promotional Mix (AQA GCSE Business)

Factors Affecting the Promotional Mix

• The promotional mix is the combination of promotional activities selected by a business to inform, persuade and remind customers of its products or brand

• A range of factors affect which promotional activities are chosen and combined

Diagram: factors affecting the promotional mix

The promotional mix is influenced by the finance available, the nature of the product and market, competitor actions and the target market

Available finance

• The amount of finance available determines the methods and scale of promotional campaigns

• Advertising can be very expensive, particularly in the mass media such as TV and newspapers

  • On average, a 30-second daytime TV advert on a popular channel costs between £1,000 and £2,000 but these prices can skyrocket during peak times

    • E.g. High numbers of Super Bowl viewers means that 30-second tv adverts on US TV networks have been bought for as much as $6.5 million

  • Using social media channels to promote products can be very cost-effective, especially for small businesses

    • The average cost per click (CPC) on Facebook adverts is £0.78, though small businesses can host free pages on the social media platform

Competitors actions

• The actions of competitors can put pressure on a business to amend or increase its promotional activity

  • When close rivals increase their spending on promotion, a business may need to respond with its own promotional activity to avoid losing market share

    • E.g. Companies such as EE and Vodafone often use the same national newspapers to promote special offers, with their adverts often appearing on the same page spread

Nature of the product

• The nature of the product, including its brand image, makes some promotional methods more suitable than others

  • Businesses selling luxury or premium products often place advertisements in more exclusive publications

    • E.g. Brands such as Louis Vuitton, Burberry and Chloe place regular, glossy advertisements in fashion magazines such as Vogue and Tatler

  • Hi-tech products may be advertised in specialist magazines such as What HiFi? or Practical Photographer or promoted at specialist events such as trade fairs

Nature of the market

• The nature of the market, including its size and geography, determines the most suitable promotional methods

  • Businesses often use the mass media, such as TV, radio or national newspapers, to promote products that appeal to a wide audience

    • E.g. Grocery delivery company Ocado advertises its services on major UK radio stations such as LBC

  • Businesses that sell products in a niche market are likely to use promotional methods that can be highly targeted

    • E.g. Local outdoor advertising methods, such as billboards and public transport posters, can be used to promote products aimed at customers in a particular geographical area

Characteristics of the target market

• The characteristics and interests of the intended target market make some methods of promotion more effective than others

  • The media with which customers interact is an important consideration

    • Businesses whose target markets are keen users of social media, such as young people, may choose this method over advertising in newspapers, which are read less and less by younger generations

    • The places frequented by the target market can also determine the method chosen

      • E.g. Products such as confectionery and toys, aimed at children, are often advertised in cinemas, shown before U and PG-rated films

Successful Promotional Mixes

• A successful promotional mix is one that meets the marketing objectives and specific criteria set by managers

• In general, successful promotional mixes:

  • Are cost-effective

  • Provide good coverage of the target market

  • Balance the rest of the marketing mix

  • Are high quality, reflecting the values of the brand

  • Make use of a variety of advertising and below the line methods

Examples of Successful Promotional Mixes