Marketing being an integral part of operations in a company, companies often invest and allocate substantial financial resources and efforts into marketing activities. In the current scenario it is necessary to be accurate and efficient in managing the marketing resources and the budget allocated to marketing activities. Choosing an effective marketing strategy with right combination of marketing activities is a challenge in a scenario where you have multiple marketing options, multiple market segments and multiple product offerings.
What are the things that should be included in a perfect marketing mix?
The marketing mix would necessarily consist of the marketing activities like sales, promotions & advertisements (both online and offline), duration of the activities, timing and frequency of the activities depending upon the product and its variants, the target segment, the distribution network, channel reach, the region, size and based on the planned marketing activities understanding the potential of the market through market research.
The benefits of the efficient management of these activities are precision in reaching out to the target market, understanding the returns by each of the activities, reduction in cost by cutting down doubling effect & effective management in overall efforts, time & cost.
Introducing the concept of opportunity cost here, when a company allocates human resources, financial resources, time and efforts targeting the planned marketing segments, it is choosing between markets and marketing options bases on expected results. Hence the activities are chosen between multiple options and if the frequency and duration of activities are precisely managed, the marketing efforts will yield better results with improved efficiency.
Managing your marketing mix
The management of marketing mix acts as a regular audit on the marketing activities being carried out and can be closely monitored to yield better results. This helps in real time coordination on the marketing efforts.
Though in practice companies use business Intelligence software and KPIs for the understanding of the marketing activities and product performance across targeted markets; it is necessary to understand in a constantly changing business environment with changes in technology, external business environment and governing policies; it becomes difficult to act upon the KPIs and will have to rely on intuitive understanding of the business strengths and environment.
In a scenario where consider promotional options of news & media advertisements, sponsorships, online marketing, hoardings, tradeshows are cost intensive it is a dilemma to choose the right marketing mix in targeting the desired market segments.
In services industries the marketing is dependent on the online marketing and direct sales, where as in a product based or B2B manufacturing industry it is dependent upon the strong distribution channel & network, in a FMCG, Telecom, Consumer Durables, industries it is dependent again on the distribution network but also on advertisements and promotions through the media network. In investment intensive industries to a major it is dependent upon the marketing activities focus with the background of clientele and past projects delivered.
Common mistake companies can make when executing marketing activities and how to fix it
General mistakes companies make in reaching to a market segment are overlapping of marketing activities (channels) for the same market segment and product. This generally happens in services, FMCG sector where the end user is the individual consumer. It is important to choose limited marketing channels for the targeted market segment to make sure the customer does not get irritated by the marketing activities.