Every firm has a unique public image in the market. The marginal analysis method helps to find out the level of promotional expenditure that maximize the profits generated by the promotional mix. Advertising is the most commonly used tool of promotion. Pricing Strategy. Market Size 6. When an organisation used the pull strategy, it undertakes advertising on a large scale. The internal factors originate within the company, and it's the company that has control over them. In case of industrial goods (like plant, machinery etc.) The allocation of funds by the top management for the promotional activities must be kept in mind by the marketing manager while determining the promotional mix of a firm. The nature of the product dictates the combination of different promotional tools that would best suit its requirements. High price of a product requires advertising as well as personal selling. Specialty goods like refrigerators require good amount of personal selling to dealers and retailers. Mass selling consumer goods are promoted through advertising, and sales promotion. Long-term success in the retail business depends on company performance on key variables that ultimately determine prospects for growth and profitability. Companies having market penetration directly depend heavily on personal selling and advertising plays a supporting role. The tools of sales force promotion are bonus, sales force contests, and sales meetings and conferences. Availability of Funds 11. There are two types of products requiring attention by marketing department for selection of appropriate marketing promotion mix. Consumer products are often advertised on television in a way that tries to create an emotional tie with the buyer. Such is the high brand value of apple that people were actually looking forward for i-phone 5 and created massive demand for the same. If target customer is uneducated then, audio visual becomes effective rather than advertisement in newspaper. Marketing management should use the combination of the tools available for optimum results. The product type i.e., industrial or consumer affects the promotion mix. If a product is frequently purchased by the end-consumers. Managers who are being held accountable to produce results often use price discounts or coupons, since they produce a quick and easily measured jump in sales. Promotional Strategy 15. The stages of the product life cycle have to be analysed to determine the promotion mix. Sales promotion targeted toward final buyers (consumer promotion), business customers (business promotions), retailers and wholesale (trade promotions), and members of the sales force (sales force promotions). are applied for promotion. Industrial and specialty goods are promoted through technical journals and through salesmen. Later, as the product reaches the maturity stage, the objectives of maintaining brand loyalty and creating brand preferences become more important. It is a common practice of combining various factors of promotion mix for efficient and better marketing management. There are many factors which influence promotion mix. For industrial buyers, certain other variables like relative size, bargaining power, buying responsibility etc., influence the promotional mix decision. Different promotional tools are effective at different stages of buyer readiness. Manufacturer makes, all efforts to sell maximum amount of his product and in his efforts, he uses or tries to use an ideal promotional mix so that the main objective of the business to sell maximum amount of his product and earn profit. If a product is for kids, printed advertisement tends to be useless. Letâs take a closer look at what really influences the growth of your business. If the middlemen are allowed higher profit margin, sales promotion at dealer level is important. The genetic factor is also called internal factor because the basis of plant expression (the gene) is located within the cell. A pull strategy the manufacturer stimulates the consumer to ask the retailers for the product. Personal selling generally is used more with complex, expensive, and risky goods and in markets with fewer and larger sellers (hence, business markets). While it is one of the essential factors for a job promotion, having the right skill set is equally a crucial factor that is considered by the management in employee promotion. To experience the product and ask questions. If the middleÂmen are allowed higher profit margin, the middlemen are motivated to stock and push the brand and very little advertisement may be required. Determining the promotional budget is a significant task of the retailer. If the product passes through a longer channel of distribution, the marketer will have to give more importance to advertising and less importance to personal selling. That is why, most of the firms make use of all kinds of promotional activities to launch their products successfully. On the other hand lower market size requires personal selling which is lower in cost compared to advertisement. That's why it is very important for any business that struggles with sales to quickly determine factors that may be affecting sales and correct them. Designing a proper promotion mix is called promotional strategy. It shows the degree to which a marketer’s brand usually affects the Promotional mix. (iii) Stage of product’s life â During the introduction stage of a product, main aim of promotion is to create primary demand by emphasising the product’s features, utility etc. Organisation Related Factors. Thus it is very complicated process and in depth analyzing every aspect of price and pricing decisions. Store owners should consider implementing an inventory management software to manage their stock and in the right way. They are the ‘push’ strategy and the ‘pull’ strategy. Customer comprehension is primarily affected by advertising and personal selling. Other decisions are fairly routine and require little effort. If the product is not of complex nature, the firm concentrates much attention on mass advertising media. Let's take a look at them now. Personal salesmanship has a secondary role in pull promotion and the marketer relies on intensive distribution. 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There is minimum wastage, development of relationship with the customer and direct feedback. The product is pushed through the channel. Pricing decisions are crucial in deciding promotional strategies to be used as a part of promotional mix. require mass advertisement. Personal selling is costly, but effective for industrial customer as there number is less. During the introduction stage, the customers are to be informed about the availability of the product and educated about its benefits and uses. It is a common practice of combining various factors of promotion mix for efficient and better marketing management. For the retailers the advertising helps fast turnover so that he can stimulate sales. If you take care of them, your business will be on the right track for success. Consumer products can be necessities, speciality goods or luxury items. When the marketing manager has to work within the constraints of a limited budget, he should make the best allocation of it by choosing low cost promotional methods. Personal selling and advertising is required for market penetration. The manufacturer invests heavily in advertising so that the retailer suggests the retail selling price. The environmental factor is considered external, and refers to all factorsâ¦ Inclement Weather/Natural Disasters Often last minute or unexpected weather conditions will heavily influence your marketing plans. Stages in the Product Life Cycle 4. Products targeting children will not use press advertisements as a means of promotion. Branding also reduces price flexibility. It shows how frequently the final buyer buys the product. Products having not much differentiation, say Modern bread or Britannia bread, personal selling will be the best way of promotion emphasising to get the product stocked in as many retail outlets as possible and to secure maximum and effective shelf space display. Â© Copyright 2021 The Science Times. Product Related Factors 2. These factors include: One of the top factors that can determine the business' sales growth is the capital itself. Machinery, equipment or land personal selling is more appropriate as a great deal of pre-sale and after-sale services is required to sell and install such products. Fund Available for Market Promotion: Financial capacity of company is a vital factor affecting promotion mix. In case of a small budget, expensive means like public relations cannot be used. 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