Factors having an Impact on Setting the Promotion Mix
Category: Marketing
When setting the promotion mix, the company has to consider the following four factors: the type of product or market, choice of ‘push or pull’ strategy, buyer’s readiness stage, and the product’s stage in the life cycle.
Type of product or market. The importance of different promotion tools varies between consumer and industrial markets:
Personal selling is more used when dealing with expensive and risky goods in a industrial market with fewer, but larger sellers. Usually more efforts are used on advertising when dealing with Consumer Goods.
Buyer readiness stage. Promotional tools vary in their effect on the different stages of buyer readiness as shown in the following figure:
Personal Selling and Sales Promotion are the primary promotion tools when using a Push Strategy. Advertising and Public Relation are the primary promotion tools when using a Pull Strategy.
Product Life Cycle. The effect of different promotion tools also vary according to the stages of the product life cycle:
Introduction Growth Maturity Declining
— Introduction Stage. Advertising and Public Relations are good for Awareness. Sales Promotion useful in promoting early trial (knowledge). Personal Selling to get the trade to carry the product.
— Growth Stage. Advertising and Public Relations are still powerful.
— Maturity Stage. Sales Promotion is important to remind of the product.
— Declining Stage. Advertising is still useful for reminding. Sales Promotion might continue to be strong.