- 1. Definition of the marketing mix
- 2. Overview and development of marketing mix
- 3. Advantages and disadvantages of the marketing mix
- 4. Relevance to influence marketing
- 5. Current applications
Table of contents
Definition of the marketing mix
The term marketing mix describes which promotion methods and outlets a brand or firm uses and what percentage of its marketing budget it devotes to each. Marketing mix includes the four “Ps” of price, product, promotion, and place. Add to that the more modern “Ps” of packaging, positioning, people, and politics. A brand manager has numerous choices, among them is “influencer marketing,” also known as a form of word of mouth (WoM) marketing on social media.
The numerous choices of methods and outlets available in the marketing mix include advertising, awards to the trade, commissions, consumer schemes, contests and prizes, direct marketing, incentives, press coverage and word of mouth. Of these, influencer marketing combines the promotion factor with the people and positioning factors. Among the different "Ps", influencers weigh in on packaging and price, plus politics.
Overview and development of marketing mix
Developing the influencer marketing portion of the marketing-mix can occur organically or via a paid source, such as an agency. Organically, the brand identifies individuals who frequently post positive things about it or frequently like and/or repost their content. It contacts these individuals to create a formal influencer-brand relationship that may include incentives or a payment scheme. Incentives can be as simple as free merchandise, mutual reposts or likes, or a complimentary subscription to a brand’s magazine or subscription box. Agency recommended individuals often have had formal training and the agency guarantees these influencers will remain positive and post pre-scripted messages or product highlights.
Advantages and disadvantages of the marketing mix
Consumers largely ignore advertising now via the mute button, fast forward button or ad blockers. WoM continues to influence though. Recently, so marketing agencies document clients stating, “I go on Instagram to be told what to buy.” There lies the convergence of WoM and social media. Combining the two outlets in the marketing mix extends reach. It enhances the ability to obtain uninfluenced input and opinions on price, packaging, other promotions methods and more.
It boasts an advantage most methods cannot – an extremely high return on investment (ROI). The ROI for influencer marketing is $6.50 for each $1 invested. Another source pegged ROI at $6.85 for each $1 invested.
Relevance to influence marketing
Word of mouth effect on social media and blogs has slowly replaced infomercials as the source of trusted product opinions. Instagram ads now replace infomercials for millennials. Both contain the same five steps:
- Awareness creation
- Need creation
- Urgency creation
- Choice evaluation
- Risk resolution
Research firm L2 surveyed brands regarding influencers and social media. It found that 70 percent of brands on social media such as Instagram, Facebook, and Pinterest work with influencers, especially B2C companies. Influencers help promote other marketing options like content marketing. The influencers repost or retweet relevant blog content and YouTube videos. A Linqia study revealed that 94 percent of marketers using influence marketing in 2017, called it one of the most “effective” marketing channels and decided to double their 2018 budget.
Agencies and services exist to assist businesses in identifying and contacting influencers. The brand provides the agencies with its: audience size, industry, needed content expertise. These include GroupHigh and Insightpool.
Other agencies function as talent agencies that sign and manage influencers. These influencer management agencies assemble the social media or promotions influencers for the brand and manage the team. These include HireInfluence, IZEA, MediaKix and Viral Nation.
An agency also handles campaigns and tracking metrics. The brand must analyze the metrics to determine if the results provided an appropriate ROI for its needs. Relevant measurements of influencer marketing may include: Media Value Per Post, Follower Growth Rate, and Like Follower Ratio, while relevant brand data includes: audience data, campaign cost, and ROI, relationship value, sales generated and sponsorship costs.