Question No. 8 - Principles of Marketing BCOE - 141

Solutions to Assignments 

BCOE - 141 - Principles of Marketing

Question No.  8

What are the factors affecting promotion mix.

The following are the factors influencing promotion mix:

1. Nature of the Product:

Promotion mix will vary according to the nature of the product. Consumer goods require mass advertisement. But industrial goods require personal selling, advertising, displays etc. Complex and technical products like computer need personal selling.

Non-technical products require advertising as promotional device. In case where there is no brand differentiation personal selling should be the method of promotion. Where there is brand differentiation advertising should be emphasised.

2. Nature of the Market:

For industrial market, advertising plays an informative role, but for consumer market it plays as informative as well as persuasive role. The promotion strategy varies with the target groups depending on age, sex, education, income, religion etc.

3. Stages in the Product Life Cycle:

The marketing objectives and strategies are different at each stage of the product in its life cycle. During the introductory stage intensive advertising and personal selling are required for effecting product awareness.

During growth stage advertising should be extended to maximise the market share. During maturity stage persuasive advertising and sales promotion techniques are beneficial. But at the declining stage advertisement and sales promotion are reduced to the minimum.

4. Market Penetration:

A product having good market penetration is well-known to the buyers. In that situation, middlemen are motivated to spend more an advertising.

5. Market Size:

It there is limited number of buyers, direct selling is enough. But if the market size is large the promotional tool is mainly advertising.

6. Characteristics of Buyers:

Experienced buyers of industrial product need personal selling. The experience of buyers, the time available for purchase, influence of friends, retailers etc. are the factors affecting promotion mix.

7. Distribution Strategy:

If the products are directly sold by the manufacturer personal selling is the tool of promotion.

Advertising is only a supporting tool. Personal selling and advertising is required for market penetration. If the product passes through a longer channel more importance should be given to advertising and less importance to personal selling.

8. Pricing Strategy:

Pricing influences promotion strategy. If the brand is priced higher than the competitor’s price, personal selling is used. If the price is comparatively low only little promotion is needed. If the middlemen are allowed higher profit margin, sales promotion at dealer level is important.

9. Cost of Promotion:

The cost of the media of advertising and sales promotion tools should also be considered while deciding the promotional mix.

10. Availability of Funds:

If the funds are adequate the firm can spend more for advertising and sales promotion. But small firms with limited resources can depend on personal selling.