The main factors which could influence the marketing mix are: - Finance: The business should consider how much money is to be spent on marketing. Article shared by There is no perfect promotion mix. Where the organisation is equally important, the public relations become more important. In cases where the promotion has been held before, and without advertising, measurements can be taken to analyze increases or decreases in several areas, such as sales, attendance and repeat purchases or participation. If interest rates increase, these products become more expensive for customers who can't afford to pay cash.
And, hence, they are controllable. Brought to you by Recession Impacts Everyone's Bottom Line A recession is a slowdown in economic activity that lasts for more than six months. A loss leader is a product that is sold below cost as an incentive for consumers to purchase other products at normal prices. Purchase Quantity and Frequency: Company should also consider purchase frequency and purchase quantity while deciding on promotion mix. Product differentiation, also called positioning, focuses on creating distinctions about the attributes, price, quality or usage of a good or service as compared to the competition. Pull strategy refers to the policy of a company to strive to build up consumer demand without recourse to middlemen.
For example, in India, majority of the population consists of youngsters who go to college or are in the early stage of their career. Firm choose among promotion elements on the basis of the relative cost of reaching an intended receiver. A college student in America would buy a pre-owned car. This may include introducing a rival product or matching new prices. The same kind of college student from a rural area would prefer a motorbike that is already a success late majority. Similarly, type of message, language of message, type of sales promotion tools, etc.
For each and every activity budget is being prepared. Thus, pull strategy typically involves heavy spending by the manufacturer on advertising and various types of sales promotion that are directed to ultimate consumers or industrial users. It plays an important role as it provides information of the product, protects the product while transportation and makes it attractive. Marketing today is very different from what it used to be a few decades ago, mainly due to a rapidly changing world economy and the development of fast and virtually free knowledge distribution and exchange. It can be concluded that, in normal situations: 1 Advertising, personal selling, and, even, sales promotion are used during the introduction stage. Many mobile carriers, for example, sell cell phones at hugely discounted rates so that consumers will sign on for one of their cell phone service packages.
Even, when company wants to influence buyers during specific season or occasion, the sales promotion can be used. Personal selling may be fit for non-branded products. Type of message, language of message, type of sales promotion tools, etc. As the amount of income and output of every organisations has a bigger role of economic factors. For example, the promotional mix for a push strategy will be different than the mix for a pull promotional strategy. The-manufacturer promotes goods to wholesalers, wholesalers in turn promote to the retailers and retailers persuading the consumers to buy.
The inefficiency factor comes in when, for example, a small enterprise has to use personal selling to reach a large target market as opposed to the more efficient advertising option. In such cases they opt for newspaper ads, fliers or promotion activities like free samples at crowded locations in the target market. This term can encompass driving traffic to all stores in a chain, specific retail locations or perhaps a website. All these types of products need different promotional tools. The non-personal component means that advertising involving mass media e. Marketing faces many new challenges in the 21st century but none for important than the surg … e of globalization and information technology, both which impact current businesses more than any other factors.
The stage of the product in the life cycle also directly affects the choice of promotion tools and their intensity. It of personal selling along with advertising and other trade promotional measures. The main technology supporting business today is the Internet. Temperature - Hot things rust faster than cold things. Elements of Marketing Mix Product — A product is anything that satisfies a consumer need. Everyone has to devise a mix depending upon the situation. It would be great if the success of your marketing plan depended solely on your own creativity and effort, but the harsh truth is, other factors get in the way.
Firms often have to mat counter the promotional activities of the rivals to maintain or increase their market share. So, the firm that want to use push strategy must develop a marketing channel that includes wholesalers that have their own sales force and a network of retailers who will promote the product aggressively. Companies that sell household cleaners, detergents and other highly-processed goods that impact the environment may lose revenue. During the growth stage, customers are aware of the benefits of product. Social media, data-driven marketing, artificial intelligence, machine learning and other trends are disrupting the business landscape. In the case of a Pull Strategy, the consumers ask the dealers to carry the product, i.
During the maturity stage, the emphasis will be on switching the customers from competitors and hence more of sales promotion is used. Note that it cannot be used for certain items but essential for experimentation purposes on existing campaigns. Here, personal selling may be most applicable in targeting wholesalers while sales promotion may be the best way to reach the final consumers. During introduction, heavy expenditure is incurred on advertisement followed by personal selling and sales promotion. Naturally, in case of a limited market size, personal selling is more effective. You can If you are the owner of a small or medium sized business, a business strategist or a marketing professional, then you must first do a thorough market research with respect to the area, customer demographics and preferences, social and economic considerations etc. Many a companies now a days do not buy ad slots in cricket tournaments as it has become a very costly affair.
Generally, advertising is considered more important in case of pull strategy. As we know that personal selling is very expensive per person reached than advertising. For a consumer product the right promotional mix will take into consideration whether that product is a necessity, a specialty item, or a convenience item. Only a suitable marketing mix — called as optimum marketing mix — can serve the purpose. The club could then track new members and revenue gained as a result of airing the radio commercials. On the other hand, where markets are geographically disperse or, where there are substantial numbers of potential customers, advertising is usually the most effective.