Promotion Mix Determining Factors

The promotion mix is a combination of different promotional strategies used by businesses to establish, sustain, and boost demand for a specific product. These strategies include advertising, personal selling, sales promotion, public relations, and direct marketing.

When choosing the promotion mix, management should take the following into account:

Nature of Product

For various product kinds, different promotional tools are needed. For instance, personal selling is better suited for selling and installing industrial products like machinery, equipment, or land because such things necessitate extensive pre- and post-sale services. On the other hand, consumer goods, particularly convenience items, are better suited for publicity and advertising.

The type of products to be advertised determines the use of a specific tool in the promotion mix. For industrial products, personal selling is more important. For highly image-oriented products like fashion apparel, such as these, it is necessary to have designers or celebrities present inside the store. More sales advertising is necessary for products with little differences in attributes and performance.

Nature of Market

The volume and geography of the consumer base have a significant impact on the promotion mix. When there are few potential consumers and they are concentrated in one area, personal selling is more likely to be successful. This is when a combination of advertising, personal selling, and sales promotion is needed to sell the product.

If the consumer base is sizable and diverse, a combination of advertising, personal selling, and sales promotion is needed to sell the goods. The sort of customers has an impact on managerial choices regarding the promotion mix as well. When compared to rural, illiterate, and domestic clients, the promotion for urban, educated, and institutional consumers would be of a different kind.

Types of Buyer

Customers may be of many categories, thus the promotion mix must be created properly. In the case of organizational or company customers, advertisements published in specialist trade periodicals and personal selling are more significant, whereas consumers are more persuaded by glossy advertisements supported by some celebrities.

Types of Distribution

More advertising is done, and sales promotions are used, in order to distribute products widely. For products sold through selective distribution, the mix of promotions will vary, and for exclusive distribution, such as Rado watches and high-end furniture, more personal selling is necessary.

Stage of Product’s Life

As the product progresses through its life cycle, the promotion mix likewise evolves. The fundamental goal of promotion during the introduction stage is to create initial demand by highlighting the benefits and qualities of the product, etc., therefore a combination of publicity and advertising is needed. Advertising and personal selling are necessary once the product enters its maturity stage to retain consumer demand.

In order to increase dropping sales during the decline stage, the costs for other promotional activities are reduced and greater emphasis is placed on sales promotion.

Availability of Funds

The marketing budget also determines the promotion mix. If there are plenty of cash available for the promotion, a variety of promotional methods may be used. In the event that funds are restricted, management must make a prudent choice of the promotional tool.

Nature of Technique

Each element of the promotional mix has distinct qualities that have a big impact on the promotion's goal. For instance, advertising is a faceless form of communication that reaches a big consumer base. Colors and sound can be used to amplify its expression, which contributes to the creation of the company's enduring brand image in the minds of the target audience.

Personal selling comprises face-to-face interaction, which promotes the growth of friendly and intimate relationships with the clients. Similar to this, a sales promotion is a brief incentive given to customers with the aim of increasing sales for a limited time.

Promotional Strategy

The organization's promotional strategy—whether it adopts a push or a pull strategy—largely determines the promotion mix. In a push strategy, the manufacturer compels the retailers to sell the goods and urge customers to buy it by promoting it to them. Here, trade marketing and personal selling are probably more successful.

In the case of the pull technique, buyers ask the dealers to stock the product, meaning that they make their own purchases. Here, consumer promotion and advertising are more successful.

Readiness of Buyer

At various phases of buyer readiness, different promotional tools are required. For instance, whereas personal selling is more effective at the conviction stage, the blend of advertising and personal selling is important at the comprehension stage. When a sale is closed, a combination of sales advertising and personal selling is probably more effective.

As a result, advertising and publicity are more appropriate during the early phases of the decision-making process, whereas sales promotion and personal selling are more effective during the later stages.

Reference

Kotler, P., & Armstrong, G. (2013). Principles of Marketing. Chennai: Pearson India Education Services Pvt Ltd.

http://www.shareyouressays.com/112830/7-important-factors-that-affect-promotion-mix