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Advertising, personal selling and other methods of promotion produce slower sales response compared to sales promotion. Inclement Weather/Natural Disasters Often last minute or unexpected weather conditions will heavily influence your marketing plans. They contact the physicians and surgeons who are the best agent for promoting a drug product. Personal selling and advertising is required for market penetration. Sales Promotion Strategies. Advertising and publicity are more effective during early stages of buying, whereas personal selling and sales promotion are more effective during the later stages. pleasure, which was advertised with low priority and promoted via personal selling with high priority. Moreover, advertising restrictions can also affect sales. This is with consumer products where the consumers’ pull’ the product through the marketing channel. Nature of the Product 2. (vii) Readiness of buyer – Different tools of promotion are effective at different stages of buyer readiness. Thus it is very complicated process and in depth analyzing every aspect of price and pricing decisions. The nature of the product dictates the combination of different promotional tools that would best suit its requirements. Specialty goods like refrigerators require good amount of personal selling to dealers and retailers. If the funds are adequate the firm can spend more for advertising and sales promotion. Personal selling is cheaper and more effective in the short-run. Low price product on the other hand requires only advertising on a mass level and on a regular basis. Heavy competition requires all factors of promotion in order. (vi) Promotional strategy – Promotion mix depends to a great extent on whether a company follows push or pull strategy to create sales. Experienced buyers of industrial product need personal selling. 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. Welcome to EconomicsDiscussion.net! The company needs to be mindful of maintaining its quality and adding or modifying the functions and utilities according to the changing technologyand varying tastes and preferences of the consumers. If Brand value is higher, then only reminder advertisement is enough but low brand product requires blending of advertisement and personal selling. 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. It starts from introduction to the market and ends being obsolete. Designing a proper promotion mix is called promotional strategy. 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 company has no control over them, but they can develop some strategies to respond to them. ©2021 ScienceTimes.com All rights reserved. Sales promotion offers incentives and induces buyers to buy now. Product managers are under pressure to generate quarterly sales increases. Product complexity is another determinant of Promotional mix. Such as, for the industrial products Viz. Different promotional mix will be required in different phases of the product life Cycle. Co-Ordination with Other Elements of Marketing Mix and a Few Others. Closing the sale is influenced mostly by personal selling and sales promotion. Improvement in the growth monitoring can only be successfully undertaken if the e. Obsolete stage of product- All promotional efforts are stopped because product is withdrawn from market in this stage. Nature of Technique 13. It is another variable in determining Promotion mix. © Copyright 2021 The Science Times. c. Maturity of product- This stage is of high level of competition and hence advertising is assisted with sales promotion in the form of attractive offers and contests etc. However, the growth and expansion of SMEs are constrained by some unknown factors and those are yet to be revealed. To make personal selling highly effective, sales force promotion is essential. Factors Affecting Promotion Mix – Primary Factors and Secondary Factors. 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. In the growth stage, the consumers have already heard of the product. In pull strategy producer directly takes responsibility of sales promotion via mass communication and advertisement. 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. In the words of Whitehead “In case of an expanding market, the firms may stand to gain by following the methods of Aggressive Selling. In the growth phase, the demand is high and customers have more disposable income, while in a recession phase, money is reduced as well as the demand and supply of a product. Sale… In Nigeria, corruption occurs in many areas but the most common is corruption of government officials. General Economic Condition: Consumer goods like grocery items, drugs etc. 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. The stage of a product’s life cycle is an important determinant of promotion mix. Characteristics of Buyers 7. Maruti has different brand of cars 800, Alto, Wagon-R, Swift etc. Advertising increases whereas sales promotion declines. 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. The promotional strategy also depends upon the channel or the route through which the products flow from the firm to the consumer. Promotional Strategy 15. During these all stages, promotion have different objectives and hence different elements of communication are used in this different stages. Market Size 6. Thus all tools of promotion work together. If the brand is priced higher than the competitors’ price, personal selling is adopted. People are buying product and advertising ensures continuity in this sale. The marginal analysis method helps to find out the level of promotional expenditure that maximize the profits generated by the promotional mix. In general, there are two factors affecting plant growth and development : genetic and environmental. To make the factors easier to understand, they are divided into two groups – leadership and management. But in consumer buyers’ market, advertisement plays informative as well as persuasive roles. The sales and revenues that your business generates will vary from year to year. Where there is brand differentiation advertising should be emphasized. The promotion mix of any organisation is a combination of the above four elements that is advertising, sales promotion, personal selling and publicity. The business should ensure that they maintain the quality of the product and add or modify the functions according to the ever-changing technology and the varying tastes and preferences of the customers. Align Sales and Marketing for High Growth By now, factor 1 and factor 2 should have demonstrated the central role of marketing in the new B2B paradigm. Companies having market penetration directly depend heavily on personal selling and advertising plays a supporting role. Personal salesmanship has a secondary role in pull promotion and the marketer relies on intensive distribution. 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Consumer products can be necessities, speciality goods or luxury items. The message through advertisement is relatively simple and easily understands. Any business that wants to achieve higher sales growth must upgrade their technology. There are many factors which influence promotion mix. For example, advertisement for woolen clothes are useless in deserts. On the other hand, advertising and publicity are more important in case of consumer goods, particularly low-priced convenience goods for daily use. Some promotional tools are effective in some areas only because of their special attributes. raw material, plant and machinery, furnace, equipments, tools and parts etc. What Can You Do With A Degree In Computer Science? Consumer marketers are likely to spend comparatively more on sales promotion and advertising; business marketers tend to spend comparatively more on personal selling. For the retailers the advertising helps fast turnover so that he can stimulate sales. It has an express objective of getting higher sales. Pricing strategy influences the promotion mix in two ways. Various promotional forms are communication devices which convey the producer’s messages to consumers, but quite in different ways and effects. All the promotional efforts of the company are targeted directly towards the consumer. Pronouncements of laws by the government regarding the legality of the product, its minimum pricing requirements, and taxes can affect sales of that particular product. In this situation, we assume that the market of the product is state (or the total demand of all the brands of the product in the market is static) one can increase one’s sales only by snatching the market from ones competitors. Sales promotions are mostly for short duration, for a specified period, leading to a sense of urgency in consumers to buy now. Advertising is used for such products on a mass scale at a high frequency. Selection of marketing mix is affected by following factors: Target market is a prominent factor which decides the faith of product and profits. E.g. Different promotional tools are effective at different stages of buyer readiness. 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). Demand for daily use goods can be created easily with advertising while speciality items may require personal selling efforts. It consists of a blend of advertising, personal selling, sales promotion and public relations tools. 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. A product having good market penetration is well-known to the buyers. Long-term success in the retail business depends on company performance on key variables that ultimately determine prospects for growth and profitability. 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. 9. There are many factors which influence promotion mix. 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 customers are scattered over different areas then mass advertisement campaign is useful and essential and in that case personal selling becomes ineffective. Products which are used in industry are called industrial products. If the product is satisfying customers' needs at reasonable prices, it will sell. Hence product and its nature amend decisions regarding promotion. Store owners should consider implementing an inventory management software to manage their stock and in the right way. Hurricane affects may require your marketing strategies to focus on discounts during the season or heavy promotion after the season. If the price is comparatively low only little promotion is needed. All the considerations given should fit in with the overall marketing and promotion policy of the company, while deciding the promotion mix. 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. Stages in the Product Life Cycle 4. Push strategy is pushing promotion through intermediary levels of distribution like wholesalers, retailers. Customer comprehension is primarily affected by advertising and personal selling. 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