Advertising is the most commonly used tool of promotion. The factors affecting promotion mix are:-, 1. Example- Coupons and consumers sweepstakes. So, these are some of the factors that could have an impact on your sales. Companies with larger resources can go for large scale and more sophisticated promotion tools. Chapter No. All the considerations given should fit in with the overall marketing and promotion policy of the company, while deciding the promotion mix. This is with consumer products where the consumers’ pull’ the product through the marketing channel. Marketing management should use the combination of the tools available for optimum results. Though, selection of the promotional mix may depend on other market factors also, such as intensity of competition, consumer’s characteristics and requirement of channel members. 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. Some seasonal products are marketed via advertisement when on-season time and during off season when product demand is very low, personal selling is used as a promotional tool. Personal selling is costly, but effective for industrial customer as there number is less. During the introductory stage intensive advertising and personal selling are required for effecting product awareness. The particular way in which a marketer combines promotional activities is known as promotion mix. Any business that wants to achieve higher sales growth must upgrade their technology. In case where there is no brand differentiation personal selling should be the method of promotion. Privacy Policy3. Factors affecting the choice of promotion method Promotion is a critical determining factor for the success of a marketing program. The product is pushed through the channel. The marketing objectives and strategies are different at each stage of the product in its life cycle. To have strong influence of promotion powerful and resourceful executives should be part of the firm to approach to promotion. It consists of a blend of advertising, personal selling, sales promotion and public relations tools. Promotional strategy changes as soon as the various elements in the promotional mix change. matters in selection of promotion mix. Advertising and publicity are more effective during early stages of buying, whereas personal selling and sales promotion are more effective during the later stages. Personal selling is used for finding distributers, wholesalers, retailers etc. It starts from introduction to the market and ends being obsolete. These are – Pull Strategy – The pull strategy attempts to get the customers to ‘pull’ the products from the company.It involves making use of marketing communication and initiatives like seasonal discounts, financial schemes, etc. Instead of that, colorful, simple but attractive advertisement is useful. On the other hand, advertising and publicity are more important in case of consumer goods, particularly low-priced convenience goods for daily use. However, the growth and expansion of SMEs are constrained by some unknown factors and those are yet to be revealed. Direct marketing sales promotion and publicity help reach potential customers and induce trail purchases by offering coupons and free samples. Factors Affecting Promotion Mix – Nature of Product, Nature of Market, Stage of Products Life, Availability of Funds, Distribution Strategy, Pricing Strategy and a Few Others Designing a proper promotion mix is called promotional strategy. Advertising is an impersonal method of promotion, therefore, it can be used for both building a long-term image of the product and selling it. Therefore a combination of advertising and publicity is required. 1. Similarly, convenience items like gift packs are promoted through personal selling combined with window display, while many of industrial products most of high unit value require a quite different mix. If target customer is uneducated then, audio visual becomes effective rather than advertisement in newspaper. (vii) Readiness of buyer – Different tools of promotion are effective at different stages of buyer readiness. Examples are- sales contests for salesmen, dealer contest for intermediaries, incentives and commission for the salesman as an reward for selling the product. The tools of sales force promotion are bonus, sales force contests, and sales meetings and conferences. If the product is satisfying customers' needs at reasonable prices, it will sell. (ii) It can apply some of its existing brand elements. Most consumer goods manufacturers generally employ a push pull (combination) strategy to sell their products. Personal sellingis highly essential in marketing. There are two types of products requiring attention by marketing department for selection of appropriate marketing promotion mix. 7) Sales Management. During the decline stage sales promotion is used to push up sales. To make the factors easier to understand, they are divided into two groups – leadership and management. Pricing strategy influences the promotion mix in two ways. Similarly, sales force contests are arranged to stimulate the efforts of the salesmen. Following are Factors Affecting Sales Forecasting 1.Economic Conditions The general economic conditions prevailing in the country have a considerable impact on the sales forecast of the company. But, if some potential customers have never heard of it and are unaware of the product’s presence, will they buy? But in case of financial constraints the firm has to be selective in use of promotional tools. In this article, we will cover some factors that may affect sales performance, whether they are internal or external. It's crucial to build and maintain a good network of suppliers. In this efforts, the manufacturer uses all his resources to get the objective of a higher sales volume by expanding the market for the product. Companies having market penetration depend on both personal selling and advertising. Marketing, Products, Promotion, Promotion Mix, Factors Affecting Promotion Mix. The internal factors originate within the company, and it's the company that has control over them. There are many factors which influence promotion mix. Because consumers often buy on emotions, ads can affect the buying decisions. Non-technical products require advertising as promotional device. Promotional strategy and promotional mix change from market to market. Consumer goods like grocery items, drugs etc. It shows how frequently the final buyer buys the product. But during maturity stage of the Product Life Cycle, demonstration effect works well and the consumers follow the crowd. If a product is of complex nature, highly trapped and expertised salesmen are required to contact the concerned consumers. On the other hand lower market size requires personal selling which is lower in cost compared to advertisement. Any business has to comply with the demands of laws and regulations of that particular country where it operates. These products are directly consumed by customers hence, no of customers are very large and that is the reason advertising becomes essential and necessary. Many grocery items (generally mass consumption items) are best promoted primarily through mass consumer advertising combined with good display at retail level; while most of the drug products are not placed for mass advertisement in newspapers and popular general journals. Companies can use several pricing techniques to stimulate early purchase. Various stages of product life cycle affects different promotional mix. The company has no control over these expectations; it can only change its production and marketing methods to meet its consumers' needs. The promotion mix of any organisation is a combination of the above four elements that is advertising, sales promotion, personal selling and publicity. If the marketer has to provide realistic solutions to the problems of the buyers, they must know their customers, their needs, their desires, their attitudes, values, expectations and aspirations. In pull strategy producer directly takes responsibility of sales promotion via mass communication and advertisement. It is a common practice of combining various factors of promotion mix for efficient and better marketing management. But a firm with financial constraints will be selective in the use of promotional activities. The company has no control over them, but they can develop some strategies to respond to them. Pricing Strategy. raw material, plant and machinery, furnace, equipments, tools and parts etc. During maturity stage persuasive advertising and sales promotion techniques are beneficial. What Can You Do With A Degree In Computer Science? Different promotional tools are effective at different stages of buyer readiness. But at the declining stage advertisement and sales promotion are reduced to the minimum. Thus, advertising and publicity are more effective during the early stages of the customer buying decision process, whereas personal selling and sales promotion are more effective during the later stages of the customer buying decision process. (vi) Promotional strategy – Promotion mix depends to a great extent on whether a company follows push or pull strategy to create sales. Similarly, other variables like sex, fashion, age, education religion, place of residence etc., are worth consideration whereas these variables have no meaning for industrial buyers. Higher sales can be obtained from both or any of the following two ways: (a) By adding more customers, loyal to the product – It is possible when market of the product is expanding. Marketing management should use the combination of the tools available for optimum results. During the conviction stage, personal selling is very effective. Companies having market penetration directly depend heavily on personal selling and advertising plays a supporting role. Past Economic Performance The external factors are competition, political, economic, and technological forces that affect sales. 4 Leadership Factors. When the push strategy is adopted the producer directs all promotional efforts mainly on the middlemen that are the wholesalers and retailers. The following are the factors influencing promotion mix: Promotion mix will vary according to the nature of the product. Nature of product undoubtedly affects promotion mix for some obvious reasons. Nature of the Market 3. The promotion mix will consist of press ads, magazine ads, TV spots, cinema slides, incentive offers, contests, etc. If you want to successfully earn a promotion, then make sure to identify the skills that are required for the position that you are looking to … Specialty goods like refrigerators require good amount of personal selling to dealers and retailers. For a retailer it is important to understand how consumers treat the purchase decisions they face. Sales promotion strategies can be divided into three broad types. Let’s take a closer look at what really influences the growth of your business. If a product is for kids, printed advertisement tends to be useless. of some seasonal products- Raincoats, umbrella, woolen garments, heater, A.C etc. However, it is possible for you to forecast your business sales with relative accuracy. Before publishing your Articles on this site, please read the following pages: 1. Some firms lack experience with certain promotion elements and therefore does not use them. Advertising in reputed magazines and journals is very costly, but can attract the status conscious customers towards the product of the firm. Distribution Strategy 8. Inclement Weather/Natural Disasters Often last minute or unexpected weather conditions will heavily influence your marketing plans. For industrial market, advertising plays an informative role, but for consumer market it plays as informative as well as persuasive role. Advertising is expensive but only apparently, but it reaches in wide range of customers and prospective buyers which results in lower cost per individual, so, number of audience decides which type of promotion strategy should be used. It has an express objective of getting higher sales. Companies must consider several factors in developing their communications mix. Half of the companies surveyed experienced their sales and marketing costs rising faster than revenues. Personal selling and sales promotion are highly effective at closing the sale stage. Socio-Economic characteristics like age, sex, income, education etc. The management must consider the following factors in determining the promotion mix, these are: Nature of Product: The different type of product requires different promotional tools. Pricing decisions are crucial in deciding promotional strategies to be used as a part of promotional mix. Promotion has to be directed at specifying product benefits. An accurate sales forecast can be made, if the following factors are considered carefully: 1. Improvement in the growth monitoring can only be successfully undertaken if the The leadership factors focus on the people at the top. Sometimes because of non-availability of some promotional methods, marketer must select appropriate method from those which are available. Thus all tools of promotion work together. Following are the characteristics of target market which affects promotion mix for particular product: Size of market affects target market and which in turn affects selection of appropriate marketing promotion mix. The main aim of all production activities is to sell the product and make profits. Do not reproduce without permission. Consumers are faced with purchase decisions every day. The rapid growth of sales promotion is due to the fact that product managers are faced with greater pressure to increase their current sales and sales promotion as viewer as an effective short-term sales tools. This organization related factor is related to the personnel of the firm. Apple only advertised date of its new product launch, viz- Apple i-phone 5. Levy, Webster, and Kerin (1983) attempted to assess the sales and profit impact of alternative push marketing strategies for a marga-rine product. Where the numbers of customers are large and they are scattered widely in different parts of country, advertising and sales promotion are required to sell the product. During the introduction stage, the customers are to be informed about the availability of the product and educated about its benefits and uses. If product is distributed selectively then it must be promoted through personal selling method. Product comes and goes from market. Promotion mix and sales presentations, product demo, exhibition, personal selling becomes necessary for an industrial product of high value and high technology which is purchased infrequently. The goal is to have sales managers with both the skill and the will to reinforce and support any sort of change or developmental effort. During these all stages, promotion have different objectives and hence different elements of communication are used in this different stages. Any business, whether small or large, should put maximum efforts in expanding sales volume because continuous growth in sales is the only way to survive in the market. Welcome to! There are factors responsible for rapid growth of sales promotion discussed below. High price catches risk of disinterest which should be removed by personal selling, while brand must be established with advertising. Advertisement of various smart phones and tablets are very common on television. When a firm introduces a new product it has three main choices: (i) It has developed new brand elements for the new product. If the brand is priced higher than the competitor’s price, personal selling is used. If the product passes through a longer channel more importance should be given to advertising and less importance to personal selling. Customer conviction is influenced mostly by personal selling. In stage 1 i.e., introduction to basic promotion objective is to inform, which helps the customer to create awareness and interest in the product. Mass selling consumer goods are promoted through advertising, and sales promotion. Advertising is also used for products that are familiar to consumers. After the product has been launched, advertisement and publicity are more important to create continued patronage of the customers, to create a good image of the product and its manufacturer and to meet competition in the market. Personal selling is more important industrial products. Immediate Profits. The stage of a product’s life cycle is an important determinant of promotion mix. Later new color range were introduced by the company in a same scooter, i.e. Advertising can reach large number at less cost. That is attractive to customer. Communication tools differ in cost-effectiveness at different stages of buyer readiness. Nature of the Product 2. Fund Available for Market Promotion: Financial capacity of company is a vital factor affecting promotion mix. To demonstrate complex idea personal selling and sales promotion are emphasized such as display at point of purchase (POP) demonstrations and printed brochures. A firm with huge promotional budget can spend on all promotional activities. Cost of Promotion 10. Experienced buyers of industrial product need personal selling. Thus it is very complicated process and in depth analyzing every aspect of price and pricing decisions. are applied for promotion. It is a common practice of combining various factors of promotion mix for efficient and better marketing management. a. Products like toys, toilet soap and cosmetics are effectively shown on television. If the target customer belongs to the urban masses, he can be easily reached through traditional means of marketing, but if the target customer belongs to rural India, the company would have to approach him using a different marketing tactic. Customer comprehension is primarily affected by advertising and personal selling. The price level, national income, profit rates, interest rates, rental rates all help to decide the first market potential and later the sales forecast. Sales forecasting does involve crunching numbers, and you do need to base it on reliable information. The distinction is very conspicuous, in the case of industrial buyers’ and consumer buyers’ market. When the product reaches maturity stage, reminder advertising would be enough as customers are already aware about it. In case of pull strategy marketer also spends on advertising and on consumer sales promotion such as free samples: A firms branding strategy implies using goodwill of its existing brand name to promote new product. In general, there are two factors affecting plant growth and development : genetic and environmental. Share Your Word File Therefore, the economic cycle has an impact on sales. Expertise requires for production and sale of such types of products hence personal selling is done with the help of experts as salesmen. Personal selling is cheaper and more effective in the short-run. To experience the product and ask questions. Demand for daily use goods can be created easily with advertising while speciality items may require personal selling efforts. The major factors that influence the promotion mix decision are as follows: Different products require different promotional methods. These factors include: One of the top factors that can determine the business' sales growth is the capital itself. Some decisions are more complex than others and thus require more effort by the consumer. There’s a direct correlation between leadership engagement and sales training initiatives and results.
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