Discuss the factors that influence to select promotional mix.
There are some factors that influence to select promotional mix. These are as follows-
1. The target market: At least four variables affect the choice of promotional method for a particular market.
a. Readiness to buy: A target market can be in any one of the six stages of buying readiness like: -
i. Awareness: In this stage the seller’s task is to let the buyers know the product or brand exists. Customer is first exposed to the product innovation.
ii. Knowledge: Knowledge goes beyond awareness to learning about a product’s features. Here consumer is interested in the product and searches for the additional information.
Iii. Liking: It refers to how the market feels about the product or brand. Promotion can be used to move a knowledgeable audience from being indifferent to liking a brand.
iv. Creating preference: It involves distinguishing among brands such that the market prefers yours i.e. choice of one brand among alternatives.
v. Conviction: Here the buying decision is finally determined. It is entailed/involved the actual decision or commitment to purchase.
vi. Purchase: It may be promoted through a promotional price discount, or offering additional incentives.
b. Geographic scope of the market: Personal selling may be adequate in a small local market, but as the market broadens geographically, greater emphasis must be placed on advertising.
c. Types of customer: Consumer can be classified in the following ways…
i. Ultimate consumer: Ultimate consumer means who buy the product and finish the utility of that product. Advertising may be adequate but sometimes personal selling is needed.
ii. Industrial users: The group of customers who buy the product for further production. They don’t not use the product or for their personal consumption. Personal selling is adequate but sometimes advertising is required.
iii. Whole sellers: The group of buyer who buy the product for reselling. They buy huge product at a time and sell these product to the retailer. Here personal selling is more effective than advertisement.
iv. Retailers: The group of buyer who buy the product from the wholesaler or manufacturer to sell them to the ultimate consumers. Personal selling and advertising both are effective.
d. Concentration of the market: The fewer potential buyers there are, the more effective personal selling is, compared with advertising.
2. The nature of the product: Several products attribute influences promotional strategies like—
a. Unit value: Advertising would be the primary promotional tool for low unit value product.
b. Degree of customization/adaptation: Personal selling is necessary for adapting to the individual customer’s need
c. Pre-sale and post-sale service: Product demonstration and frequent servicing, personal selling is effective.
3. The stage of the product’s life cycle: Promotion strategies are influenced by a product life-cycle stage.
4. The amount of money available for promotion: The amount of money available for promotion is the ultimate determinant of the mix. To promote a product different marketer follows different strategy. The cost of all tools is not equal. Where promotional tools are more effective there costs will also be high. So the amount of money available for promotion has an impact on the promotional strategy.