Factors Affecting Promotion Mix

Determining the right set of promotional mix is an important decision of marketing communication manager and whenever they go for determining the promotional mix they always considered many factors.

Factors Affecting Promotion Mix are:

1. Type of Product
2. Use of Product
3. Complexity of Product
4. Purchase Quantity and Frequency
5. Fund Available for Market Promotion
6. Type of Market
7. Size of Market
8. Stage of Product Life Cycle
9. Level of Competition
10. Other Factors

Type of Product

Type of product plays an important role in deciding on promotion mix. Product can be categorized in terms of branded products, non-branded products, necessity products, luxury products, new products, etc. All these types of products need different promotional tools.

For example, advertising is suitable for branded and popular products. Personal selling may be fit for non-branded products. Advertising, personal selling, sales promotion and publicity – all four tools – are used for a newly launched product to get a rapid consumer acceptance.

Use of Product

Product may be industrial product, consumable and necessity product, or may be luxurious product that affects selection of promotion tools and media. For example, advertising and sales promotion techniques are widely used for consumer goods while personal selling is used for industrial goods.

Complexity of Product

Product complexity affects selection of promotional tools. Personal selling is more effective for complex, technical, risky, and newly developed products as they need personal explanation and observation. On the other end, advertising is more suitable for simple and easy-handled products.

Purchase Quantity and Frequency

Company should also consider purchase frequency and purchase quantity while deciding on promotion mix. Generally, for frequently purchase a product, advertising is used, and for infrequently purchase a product, personal selling and sales promotion are preferred. Personal selling and advertising are used for heavy users and light users respectively.

Fund Available for Market Promotion

Financial capacity of company is a vital factor affecting promotion mix. Advertising through television, radio, newspapers and magazines is too costly to bear by financially poor companies while personal selling and sales promotion are comparatively cheaper tools. Even, the company may opt for publicity by highlighting certain commercially significant events.

Type of Market

Type of market or consumer characteristics determine the form of promotion mix. Education, location, income, personality characteristics, knowledge, bargaining capacity, profession, age, sex, etc., are the important factors that affect company’s promotion strategy.

Size of Market

Naturally, in case of a limited market, personal selling is more effective. When market is wide with a large number of buyers, advertising is preferable. Place is also an important issue. Type of message, language of message, type of sales promotion tools, etc., depend on geographical areas.

Stage of Product Life Cycle

Product passes through four stages of its life cycle. Each stage poses different threats and opportunities. Each stage needs separate marketing strategies. Each of the promotional tools has got a different degree of suitability with stages of product life cycle.

Level of Competition

Promotional efforts are designed according to type and intensity of competition. All promotional tools are aimed at protecting company’s interest against competition. Level of promotional efforts and selection of promotional tools depend on level of competition.

Promotional Objectives

It is the prime factor affecting the promotional mix. Different objectives can be achieved by using different tools of the promotional mix. If a company’s objective is to inform a large number of buyers, advertising is advisable. If a company wants to convince limited consumers, it may go for personal selling. Even, when a company wants to influence buyers during specific season or occasion, the sales promotion can be used. Some companies use publicity to create or improve brand image and goodwill in the market.

Other Factors

Over and above these factors, there are certain minor factors that affect promotion mix. These factors may include:

• Price of Product
• Type of Marketing Channel
• Degree of Product Differentiation
• Desire for Market Penetration, etc.

The list of factors stated above is not complete. There may be more factors. Promotional strategy should be formulated only after considering the relevant factors. Marketing manager must be aware of these variables. Note that these factors affect different firms in varying degree depending upon its internal and external marketing environment.