Promotional Mix
Business: Cambridge International GCSE (2027 Exams), topic 3.3.22
Promotional Mix
Promotional mix is the combination of different promotional methods that a business uses. For example, a firm might advertise largely through TV, but also do some social media advertising and have sponsorship deals in place with athletes. Factors influencing the promotional mix are:
Finance available
- Some firms will have much more finance (money) available to spend on promotions.
- Some promotional methods (e.g. TV advertising) are more expensive than others.
- Smaller firms with less finance are less likely to be able to afford TV advertising.
Competitor actions
- The promotional mix of competitors might influence a business because they may want to reach consumers using the same channel as rivals.
The nature of the product or service
- The type of product (or service) will influence which promotional method needs to be used.
- A technical product like a laptop may want to give consumers more information about their product, whilst a simple product like orange juice (Tropicana juice for example) may not need to give info.
- A fashion label like Hugo Boss does not have much information to communicate. How their products look is more important.
The nature of the market
- As a market matures, the rate of growth changes.
- If a market is growing slowly, advertising may be less important.
- If a market is growing fast, then firms will be battling for market share and are willing to spend more on advertising as it will affect sales by a larger amount.
Target market
- A firm’s target market for a product (or service) will affect the promotional method that they use because different types of people use different platforms more often.
- A business wants to promote its product to its potential customers.
- A firm that produces women’s underwear will not usually want to promote their product to middle aged men.
Test yourself on Promotional Mix
What are the factors influencing the promotional mix?
Which product requires a large amount of information to be given to consumers in promotion?