Marketing Mix is a very big practice and a complicated one which I'm going to try to simplify in in a specific way. It stands for all the diverse ways that a marketer can reach their potential customers typically in the consumer marketing world and the mix of those different tactics that ultimately drives our A-Y and sales. The toughest part with marketing mix, which is often why it involves a lot of educated guesswork modeling, is because a lot of what a marketer spends their money on.
For example, TV advertising is not easily and directly tied to sales results. In a Marketing Mix, there are diverse ways to reach consumers; TV, radio, print, and a lot of traditional channels. There are so many digital channels that have popped up; digital display, digital video, email marketing, and search engine marketing tend to be some more focused around Customer Acquisition. It’s less often about email marketing and more around paid media and when you add up all these various places that marketers spend their money to reach consumers, marketing mix is a practice that aims to put a value on each of those areas that you're spending money on. One must look at them in grouping and not in isolation and then figure out how and where you need to reallocate spend to maximize impact. Does that mean you need to spend more on TV and less in print or more in digital and less on TV? Those questions typically get answered with a marketing mix effort and a marketing mix model.
Some of the things that are confusing or challenging with Marketing Mix is the tendency to be dominated by large media spend areas like TV, radio, and print. They tend not to get as granular and look at specific channels that may not be as big as TV but would be. Some examples are Paid Search Marketing on Google, display media advertising, affiliate marketing. Those nuances tend to get lost in the Marketing Mix Model because they're not as big a driver as some of the other big standalone channels. The other issue is that within the Marketing Mix promotion and what is often referred to as below the line marketing promotional incentives, couponing discounts tend not to really make their way into the marketing mix. This is largely because it is fragmented and not as easily measurable as from an awareness and impression standpoint as the bigger areas of spend. Sometimes newspaper couponing might be included because there is still enough scale that can be measured.
Marketing Mix is a very high-level approach of looking at what's working and what could be working better. There is a value for marketers to think more granular and to look at individual digital channels as well as a promotion marketing mix to figure out what promotional vehicles, direct response channels and direct marketing efforts are best. How are they working with or against each other and thinking about Marketing Mix as having two different areas of focus; one being media marketing mix and the other being promotional marketing mix. The benefit of splitting the two apart should give Marketers a much clearer view in where they can optimize or spend and generate a bigger return.
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