Final answer:
A business should not base its promotional mix on past successes because the market constantly changes and what worked before may not work again. The need for innovation and adaptation is critical for ongoing competitiveness and relevance. Additionally, relying on old strategies can leave a business vulnerable to competitors who are willing to be more dynamic in their approach.
Step-by-step explanation:
A business shouldn't base its selection of promotional mix on its previous successful promotional mix because the market environment is constantly changing. Factors like consumer preferences, technology advancements, and competitive actions are dynamic. Relying solely on past strategies doesn't account for these variables which can greatly affect the success of current promotions.
Moreover, a previously successful promotional mix may not be as effective due to a phenomenon similar to the consumer treadmill effect. Companies need to continually innovate and adapt their products and marketing strategies to remain competitive. Simply replicating past strategies does not guarantee future success and can lead to stagnation and decline in brand appeal.
Finally, in terms of competition, large advertising budgets can discourage new entrants, as seen with brands like Coca-Cola and Pepsi. However, a firmly established brand name can be challenged if competitors invest in innovative marketing strategies tailored to current conditions, which a business relying on old methods might not be prepared for.