How modern analytics keeps the marketing mix relevant
Organizations are striving to implement data-driven strategies. The marketing and media landscape is complex and changing. Contact between consumers and a brand or product is no longer considered to be linear. Getting your brand or product out to massive audiences through media in this digital day and age does not necessarily lead to conversions. The outcome of a data-driven media strategy depends on the KPIs on which it is steered. After all, steering on awareness and reach KPIs is very different from steering on conversion and performance KPIs.
A good media strategy alone is not a promise of success; a mix of factors contributes to a conversion. The marketing mix is a highlight of classical marketing theory and typically deﬁned by the Four Ps: product, price, promotion and place. Together, these elements determine the position you occupy in a market. In practice, there is a lot of focus on the promotion segment.
But it is also important to model the other factors, as each one plays a role in consumer decision making. Compare your product, pricing and sales channels to other players in the market and know your consumers. It is remarkable how much focus companies place on awareness, trying to reach as many potentially interested consumers as possible, even in industries such as the airline industry where pricing is determinative. The four Ps are thus far from outdated.
Additionally, external factors interact with conversions. A few rainy days before a holiday can lead to signiﬁcantly more bookings for an airline. For a food delivery company, rain can have the exact opposite effect.
There is no single formula for a successful marketing mix. This is where marketing analytics and software come in. They can improve chances of success by modelling the Four Ps and external factors so you know exactly what your investments in media deliver.