In every business, it is very essential to use a marketing mix strategy to develop the product and service. Promotion is one of the key components of the marketing mix.
So there are certain differences between marketing mix and promotion mix.
Marketing mix refers to the accumulation and fusion of different marketing resources in an effective way to attain the organizational goals and maximum customer satisfaction.
According to Philip Kotler, ‘Marketing mix is the mixture of controllable marketing variables that the firm uses to pursue the sought level of sales in the target market.
Every business has to determine its marketing mix for the satisfaction of the needs of the customers. Marketing mix represents a blending of decisions in four areas – product, price, promotion, and physical distribution. These elements are interrelated because the decision in one area usually affects actions in the others.
As time went on, the four Ps were expanded to seven Ps, including intangible service. People, physical evidence, and process were the additional three elements.
7P’s for 7C’s
Company → customer
- Product → customer solution
- Price → cost to the customer
- Place → convenience to customer
- Promotion→ communication to the customer
- People → customer service to the customer
- Physical evidence → credibility to the customer
- Process →coordinated
Characteristics of marketing mix:
- Core of marketing process:
Many important decisions must be made for each element of the mix. Assigning proper weights to each element and integrating them will maximize the mix’s impact.
- Reviewed constantly in order to meet the changing requirements:
According to changes in market conditions and complexity, the marketing manager must constantly review the market’s mix and conditions.
- Changes in external environment:
A constant stream of changes is occurring in the external environment. Many industries are characterized by a high degree of variability in their environments due to the customer.
Customers’ tastes and preferences are subject to rapid shifts in both content and format. Brand loyalty and purchasing power also fluctuate over time, as do other factors such as income and education. In order to make necessary changes to the marketing mix, the marketing manager must constantly analyze the market.
- Internal environment influence:
It is possible for a company to undergo a transformation due to technological advancements, product line changes, or a change in size and scope of operation A similar shift in the marketing mix is required to accommodate such changes.
The marketing mix is applicable to both business and non-business organizations, such as clubs and educational institutions.
- Helps to achieve organizational goals:
The use of an appropriate marketing mix aids in the achievement of organizational goals such as revenues and market surface.
- Concentrates on customers:
All four elements share a thorough understanding of the customer. The customer is the focus of the marketing mix, and the marketing mix is expected to provide maximum customer satisfaction.
Promotion/communication is one of the components of the marketing mix. Traditionally, promotion includes advertising, sales promotions, and personal selling techniques. In modern times, a variety of promotional tools with a wider scope is available in the market.
These include e-commerce/online marketing, point-of-purchase displays, sponsorship, trade shows, exhibitions, event marketing, packaging, customer service, and corporate communications. The process of combining all the promotional tools and techniques with the other elements of the marketing mix in order to achieve competitive advantage is called the ‘promotion mix’.
Elements of Promotion mix:
- Advertisement: Advertisement is a paid form of non personal communication by an identified sponser
- Selling: Any transaction in which money is exchanged for a good or service is referred to as selling.
- Direct Marketing: Direct marketing is also known as zero level marketing.
- Sales promotion: Sales promotion is a marketing strategy in which a product is promoted through short-term appealing initiatives in order to stimulate demand and increase sales.
- Public relations and publicity: Publicity has a no identified sponser and it is mouth to mouth communication to create awareness about brand, product and company. Public relations broader concept which includes strategies used by organization to acheive the objectives.
Factors affecting marketing communication mix:
- Type of product:
The type of product is an important consideration when deciding on a promotion mix. Branded products, non-branded products, necessity products, luxury products, new products, and so on can all be classified. Different promotional tools are required for each of these types of products.
- Use of product:
The product can be industrial, consumable and necessary, or luxurious, which influences the choice of promotion tools and media. Advertising and sales promotion techniques, for example, are widely used for consumer goods, whereas personal selling is used for industrial goods.
- Complexity of product:
The selection of promotional tools is influenced by the complexity of the product. Personal selling is more effective when selling complex, technical, risky, or newly developed products that require personal explanation and observation. Advertising, on the other hand, is better suited to products that are simple and easy to use.
- Purchase quantity and frequency:
When deciding on a promotion mix, the company should also consider purchase frequency and purchase quantity. In general, advertising is used for frequently purchased products, while personal selling and sales promotion are used for infrequently purchased products.
- Fund available for market promotion:
The financial capacity of a company has a significant impact on the promotion mix. Advertising on television, radio, newspapers, and magazines is prohibitively expensive for small businesses, whereas personal selling and sales promotion are relatively inexpensive tools.
- Type of market:
The type of promotion mix is determined by the market or consumer characteristics. Education, location, income, personality traits, knowledge, bargaining power, profession, age, sex, and other factors all have an impact on a company’s promotion strategy.
- Size of market:
Personal selling is, of course, more effective in a small market. Advertising is preferable when the market is large and there are many buyers. The palace is also an important consideration. The type of message, the language of the message, the type of sales promotion tools, and so on are determined by geographical areas.
- Stage of product life:
The product goes through four stages during its life cycle. Each stage presents unique threats and opportunities. Each stage necessitates its own marketing strategy. Each promotional tool has a different level of suitability for different stages of the product life cycle.
- Level of competition:
Promotional efforts are customized to the nature and intensity of the competitive environment. All promotional tools are designed to protect the company’s interests from competition. The level of promotional efforts and promotional tools chosen is determined by the level of competition.
- Promotional objectives:
It is the primary factor influencing the use of various promotional tools. Different promotional mix tools can be used to achieve different goals. Advertising is recommended if a company’s goal is to inform a large number of buyers. If a company wants to persuade a small number of customers, it may resort to personal selling.
Difference Between Marketing mix and Promotion mix:
|Marketing mix||Promotion mix|
|Marketing mix refers to the set of marketing tools or tactics used by a company not only to promote its brand, products, or services but also to satisfy the needs of the customers through the products or services.||Promotional mix refers to the set of promotional tools or tactics used by a company to create, maintain & increase the demand for products or services.|
|Marketing mix elements: 1.Product 2. Price 3. Place 4. Promotion 5. Physical evidence 6. People 7. Process||Promotional mix elements: 1. Advertisement 2. selling 3. Direct marketing 4. Sales promotion 5. Public relations & publicity|
|Marketing mix is about positioning a product/service & deciding it sell in the right place at the right time for the right price.||Promotion mix is about creating awareness & persuading the customers to initiate the purchase of a product/service.|
|It being an integrated process focuses on the product & its promotion in the market.||Here the promotion mix focuses only on how to reach the customers & how to sell the product/service to them.|
|The marketing mix is broader in scope||The promotional mix is narrower in scope.|
|1. Social media marketing 2. Print media advertising like in newspapers, journals, etc; 3. Broadcast media||1. Coupons 2. Discounts 3. Contests 4. Discounts & rebates 5. Free samples|
As a result of the preceding discussion, the key difference between the marketing mix and promotion mix it is clear that the promotion mix is part of the marketing mix and altogether it results in the development of the product/ service.
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