Showing posts with label Promotion Mix. Show all posts
Showing posts with label Promotion Mix. Show all posts

Publicity: Meaning, Objectives and Types of Publicity in Marketing

Meaning of Publicity


The other important element/factor of promotion is publicity. This can be known as public relation. In order to achieve any organizational goal/objective, social organizations, persons, group, government bodies, organizations, offices, banks, and other financial organizations can play important role. The task of publicizing/propagating the policy, programs, strategy,
products etc. by any business organization is called publicity. Budget arrangement is not necessary for such publicity. Publicity of goods can be made through press conference, speech, newspapers etc.

Publicity of the goods or services intended to sell also influences social, cultural, political, intellectual sectors besides business sector. So, objective of marketing, selection of the message and its implementation aspect should be seriously considered. Speaking about the product at any public forum or gathering can leave positive effect. So, description of goods or services should be based on logic and true data. Real publicity becomes meaningful only after mentioning important matter.

The meaning of publicity becomes clearer from the definition made by different experts and writers of marketing as follows:
According to Prof. William J. Stanton, "Publicity is nay communication about an organization, its products, or policies through the media that is not paid for by the organization."
According to Prof. Philip Kotler, "Publicity is the activity to promote a company or its products by planning news about it is the media not paid for by the sponsor."
Publicity is made not through organization but through outside sectors. The organization does not have to bear its expenses. News about the organization and its products and prices are disseminated through person, group, customers, consumer association, government bodies/organizations etc. After the information has been communicated, the consumers become confident about the product. So, this method becomes more effective than advertisement. The organization can play great role to encourage publicity. Company/firm can organize inauguration program by inviting celebrated/famous personalities, etc. for publicity. The company may also organize annual program inviting ministers each year. A company can make publicity and propagation about the organization and its products through such different programs and activities.

Objectives of Publicity


Publicity is supposed as the important element of promotion mix. It is made through different media without expenses. The objective of publicity can be mentioned as follows:

1. Announce new product


New product should be publicized much as soon as possible. Publicity can be used to bring the new goods in market. Press media provide special column to announce the new product. For instance, the Kantipur Newspaper has allocated columns for commerce and finance, advertisement, features etc. Such matters are entertained in proper place according to the nature of the advertisement and information. Company or firm company can publish notices, information, messages about features, quality, development of new product, services, price utility etc. of the products. Such publicity draws attention of the customers towards new products.

2. Announce new policy


Changed and new policies also can be announced through media. The organization/firm may adopt a new policy on allowance, or dividend distribution, or revise or improve the old policy. Information about such things should be given to all the concerned parties and people. If such information is communicated through publication/media, it gains popularity, and new policy is announced to make the people know about the new products.

3. Announce technical development


Every business organization may develop new technology and make experimental practices. If such development has been made, they should be publicized. Such publicity makes the people/customers know that the organization is able to develop new technology. Such communication and messages increase popularity and peoples' trust towards the organization.

4. Report the performance


Every business organization needs to give information to its shareholders and concerned parties about its performance. Such information can be communicated in the form of reports different media. For this purpose, proper media can be selected. Generally, this type of publicity is made by organizing annual general meeting at which report about the present condition, future program, plan, financial position, etc. of the organization is presented.

5. Counter the negative publicity


Competitors may involve in every market. They may propagate against the organization and its products. So, such negative propagation should be immediately refuted countered. While refuting or countering such propagation, the organization should publish financial position, transaction, sales plan, etc. For this proper media should be selected. Special articles/features also can be published through effective media and press conference, pamphlets distribution etc. program may be organized for such purpose. Mass communication media also can be used for such purpose. It makes the customers' confusion clear about the organization and its products.

Types of publicity

There are different styles of publicity. Among them news release, feature articles, press conference and publication are mostly practiced. They are mentioned as follows:

1. News release


News can be released through different media. Generally, much practiced media are radio, television, newspapers, magazines etc. Message about goods or services can be publicized. Specially, messages about policies and programs of the organization, features, quality product development, technical aspects etc. of the products can be disseminated through these media. The most suitable as well as popular media is press. Photograph publication adds more attractiveness.

2. Feature/articles


The second important method for publicity is publication of feature/articles. In such feature/articles the objective/mission of the organization, its policy, programs, research reports, used technology, progress report etc. are described. Such feature article is written specially by an experienced person working in the organization. This feature article is published through proper media. As details of the organization, products, features etc. are included in feature article, it becomes longer and descriptive than news publication. It also becomes reliable and dependable.

3. Press conference


Press conference is organized to say some important things to press media. Organization and its products, policy, program, strategy can be advertised through press conference. The media men are invited and clear information is given to them about subject wanted to publicize. Answers should be given to the questionnaire asked by the media men. Besides, the subject intended to publish is also distributed to them. In this way, the information of the company is disseminated at a time through different news reporters. As the newsmen involved in the conference positively present the news about the company and its products, press conference becomes effective medium for publicity.

4. Publication


Newspapers, brochure, news, letter etc. also can be used to propagate and communicate information about the organization and its products. This includes annual reports, bi-annual reports, audio visual materials etc. However, publication media should be used according to the nature of products, capacity and suitability. Media should be without cost. This method can be used in service oriented program.
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Sales Promotion: Short Term Encouragement / Stimulation for Attraction of Potential Customers

Meaning of Sales Promotion


Short term encouragement/stimulation used to create demand for the goods intended to sell is called sale promotion. This is an important element of promotion mix. In this competitive environment, its importance and popularity has been increasing daily. Sales promotion plays an important role to attract potential customers.

Various methods such as free sample distribution, rebet, coupon, price reduction, gift, decoration, fair, premium, display etc. can be used. Some producers keep cash prize into packets of goods.

The meaning of sale promotion can be clearly understood from the definitions given by experts and writers as follows:
According to Prof. William J. Stanton, "Sales promotion refers to demand stimulating device designed to supplement advertising and facilitate personal selling."

 

According to American Marketing Association, "Sales promotion refers to those marketing activities other than personal selling, advertising and publicity that stimulate consumer purchasing and dealer effectiveness such as display, show and exposition, demonstration, and various non-recurrent selling efforts not in the ordinary routine."

 

According to Prof. Philip Kotler, "Sales promotion consists of a diverse collection of incentive tools mostly short term, designed to stimulate quicker and/or greater purchase of particular product/services by customers or the trade."

 

The above mentioned definitions make it clear that various ways or methods that are devised to create demand for goods or services is called sales promotion. All the short term ways or methods devised for creating demand are called sales promotions. It works as the bridge to link advertisement and personal sale. Sales promotion also helps wholesalers and dealers.

Objectives of Sales Promotion


Generally, activities of sale promotion are conducted to expand/amplify sales. There may be various reasons and objectives for sale promotion. The main reasons or objectives are:

1. To attract new customers


Sales promotion activities should be conducted to attract attention of new customers. There are many methods to attract attention of the customers. Among them free sample distribution, coupon, price deduction, decoration are some of the examples. Such activities attract customers' attention. They may even give up / change the brand they have been using and get stimulated / encouraged to choose other new brand goods.

2. To introduce new product


The second objective of sales promotion is to introduce or present new products to the market. Bringing new product in market is very challenging and difficult task. It becomes difficult to sell new products in markets only using advertisement, personal sale and publicity or propagation. So, effective activities should be conducted for sales promotion. Sample display, presentation, trade fair etc. should be held to introduce or bring new product in the market. If new products are brought in market, they can face competition to some extent.

3. To encourage greater purchase volume


Sales promotion activities should be able to increase sales volume. The third objective of sales promotion is to increase sales volume and encourage customers to purchase more quantity. As different methods and tools of sales promotion encourage customers they become ready to buy and use greater volume of goods. Only when such situation is created, sales promotion becomes effective.

4. To educate the customers


Goods may remain in different conditions. Further improvement can be made by adding up some new features only after the products reach the maturity stage. This is called product modification. While adding new features to the products, quality and prices also are changed. So, customers should also be given full information about it. The same task is called educating the customers. Hence, sales promotion has the objective to educate customers.

5. To maintain selling stability


Sales quantity / volume remains changing for one or the other reasons. Sales may get fluctuation according to season or time. Greater volume of goods can be sold out in favorable season and less volume in unfavorable season. But, the sales volume can be maintained same even in unfavorable season by using tools of promotion, due to which selling stability remains for long. If stable sale is maintained, both the seller and buyer sides can get benefits.

6. To increase seller's inventories


The sales promotion activities increase the sales volume. When the sales volume increases, the wholesalers and retailers also should increase their inventories. Sellers become ready to increase inventories, provide facility, reduce price by purchasing goods even in unfavorable season. As a result, the inventories increase automatically.

7. To increase brand awareness

Sales promotion should make clear what products have been given brand name and their quality. In this way, to increase brand awareness in customers is also another important objective of sales promotion. Sample presentation, display, trade fair, etc. also greatly help to increase awareness.

8. To make better store display


Sales promotion inspires / encourages the retailers to make better display of goods in their shop. Nowadays, the producer of Lux soap, Bond Cigarette etc. have encouraged the retailers to display them in a beautiful way so that the customers may buy. They announce different prizes including cash, motorcycle and color television to customer.

9. To push new item


Sales promotion also encourages the sellers and channel members for sale of newly introduced products. So, they purchase new brand products from producers and urge or appeal the consumers to buy them.

10. To attract new channel members


Efficient new channel members are needed to sell any new product. Sales promotion encourages such new members to deal in such products. As a result, the market gets expanded and distribution management strengthened due to addition of new persons, channel-members or organizations. In this way, a competition among many channels members in selling products takes place through which the efficiency increases.
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Personal Selling: Types, Importance and Objectives of Personal Selling

Personal Selling

Personal selling is very important part of promotion mix. It is the eldest media of sales promotion. Although being old, this is the most popular media for sales promotion. So, all the organizations mostly use this media for sales promotion. Personal selling is, however, costlier than other factors of promotion mix. 
The task of convincing and persuading customers to buy products through personal contacting or face to face talks is called personal selling. In other words, the task of having direct contact and talks with the customers and encouraging them, assuring, giving confidence, etc. to buy product is personal selling.

The customers themselves may also come to the sales centers. Just the opposite, the seller may go to the customers' houses or offices. Demand should be created at the meeting / talks with the customers. The seller should also be able to convince the customers. As there takes place a dialogue between seller and customers, wrong concept of them towards the company / firm, if any, should be cleared off their mind. Besides, face to face talks between possible buyers, telephone talks, fax, e-mail, Internet etc. also become effective media in personal selling.

To be much clearer about personal selling, definitions of different writers and experts have been given as follows:
Prof. William J. Stanton has defined personal selling as, "Personal selling is the personal communication of information to persuade a prospective customers to buy a service or idea."

 

American Marketing Association has defined it as, "Personal selling is an oral presentation in a conservative with one or more prospective customers for the purpose of making sales."

 

Prof. Philip Kotler has defined personal selling as, "Personal selling is face to face interaction with one or more prospective purchasers for the purpose of making presentation, answering questions, and procuring orders."

 

The above mentioned definitions also make it clear that personal selling is the process of face to face talks and of persuading the customers to buy products, and as a result, receiving / procuring purchase order from prospective buyers. Personal selling is compulsory for the heavy machines and technical equipment including special products. In personal selling, the seller makes customers know about quality, utility, price, features etc. of the product. Similarly, the personal seller quenches the curiosity of the customers by giving logical and convincing answers to their questions. So, the need of personal selling is felt every time. In short, personal selling should be understood as the subject endowed with the following qualities and features.

1. Persuasion


In personal selling, the prospective customers are reassured. Personal seller stimulates the prospective customers to buy products.

2. Personal communication


Personal interactions may take place between customers and seller. Talks may also be held through telephone, fax, e-mail, Internet etc. Such exchange of information is called personal selling.

3. Selling process


Effective and goal seller should adopt certain process of selling goods. Indoor seller should complete the process such as drawing attention of the customers, politely welcoming, inquiring, presenting goods, solving customers' doubts, help them in selecting goods, giving chances for selection, selling additional goods and seeing off with respect. Outdoor sellers should complete the process such as prospecting, making pre-approach, and approach, display of product meeting objectives, close the sale and follow up about the goods or services.

Objectives of Personal Selling


Personal selling provides information to prospective customers about goods or services. In order to attract them towards ones' own goods or services, personal seller presents confidential as well as strong logics. Besides this, the personal seller gives convincing answers to the questions put forth by the customers and explains the quality, features, price, utility and importance of the goods to the prospective customers. Any curiosity, if expressed by the customers, is satisfactorily answered. The significance and objectives of personal selling are as follows:

1. Awareness of need


Personal sellers reach target markets for selling goods. They give detail information and explain clearly the feature, quality, price, utility, importance of the goods to the prospective customers and conduct different activities for persuading them to buy. Such activities, information and programs make customers feel need of the goods or services. As a result, they may take decision to buy the products / goods.

2. Solution of the problem


Seller reaches targeted markets, gives information to the prospective customers about the goods or services intended to sell. If necessary, product is also presented among them. After the presentation, the customers may raise problems about the goods. At that time the seller clearly, sincerely and convincingly gives answers with evidence about the way of solving the possible problems. For such activities, the sellers should present true and dependable records of the company. So, one of the main objectives of personal selling is to solve any problems if arise while using the products.

3. Persuading the customers


The targeted customers should be fully assured by the personal sale. The personal sellers should provide clear information about quality, features, price, utility, using methods etc. of the product to the customers. The possible customers should be converted to real customers from such information. So, personal selling aims to reassure all the customers about the product.

4. Two-way communication

The seller keeps direct contact with the customers of target market. In this way, the sellers and buyers may meet and have talks. In this way, while providing information, the sellers can also get some information about goods or services as a feedback. Two-way communication becomes possible between sellers and buyers through meeting, sales talks, sales display, public contact etc. This helps the company to form new market strategy. So, personal selling makes the two-way communication objective, which becomes beneficial to both sides.

Types of personal selling


Personal selling is very effective sale function. Such sale can also be done with different methods. It does not only make two-way communication about goods or services but also educates the customers. There are different types of sale function as mentioned below:

1. Indoor personal selling


The seller who sells goods or services living at certain place is called indoor seller. Such seller tries to sell his goods or services to different customers by establishing contact with them. Different types of customers enter the shop to buy various goods or different qualities. So, they should be impressed by attractive activities and they should make them buy the goods or services immediately. So, this function is very difficult and challenging. Special attention should be paid towards selling goods to the customers by identifying their needs and interest.

2. Outdoor personal selling

Identifying customers and by walking in different geographical regions and selling goods to them is called outdoor personal selling. Customers should be sought reaching several market segments. Such sellers should be clever, smiling, and smart and be able to establish relation with people. Besides, the seller should be able to make feel necessity of the goods, propagate new products and create demand of the goods. The customers should be able to get information about the quality, features, price, utility benefits etc. and procure purchase order and make arrangement for sale of goods. As such seller can have direct communication and contact with customers, any problem arisen should be promptly solved.

3. Sales representative


Big business forms or companies appoint their sales representatives to sell their products. Big firms / companies select clever sellers, who are experienced, educated and able to establish public relation efficient in business dealings, as their representatives. Such capable sales representatives can sell goods or services to different markets giving full satisfaction to the customers. Mostly manufacturers' sales representatives, wholesalers' sales representatives, retailers' sales representatives can be involve in selling. Such representatives are appointed to sell new goods, industrial goods and consumers' goods.
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Advertising: Meaning, Objectives and Importance of Advertising

Meaning of Advertising

Advertising is done in order to provide meaningful information about products. Advertisement is an important factor of promotion mix. Government organizations, business organizations, persons, groups, service oriented organizations etc. use this. As every product or service needs advertisement, this age  
is also called the advertising age. Similarly, the business age of today is also the age of competition. Different substituting goods are found in markets. They keep on competing with one another. So, the main objective of producers is to attract the consumers' attention towards their products.

The task of providing all the necessary information to the consumers about the quality, features, price, utility and importance of goods or services through different means of advertisement such as radio, newspapers, magazines, television etc. is called advertising. Television, video, cinema etc. are audio-visual means of advertisement. Radio, newspapers etc. also can be used to advertise goods. Goods are advertised through suitable media according to their nature, condition, cost, time, availability etc.

Different experts and writers have defined advertising. Important ones are given as follows:

Prof. Philip Kotler has defined advertising as, "Advertising is paid form of non-personal presentation and promotion of ideas, goods or services by an identified sponsor."

 

Mason and Rath have defined it as, "Advertising is a salesmanship without a personal salesman."

 

The above mentioned definitions make it clear that giving information to customers about goods or services through press, audio-visual media is advertising. Non-personal presentation of goods or services by well-known sponsor paying certain fee is called advertisement. It plays an important role in promotion of goods or services. In comparison to other factors of promotion mix, advertisement is very popular and effective factor used in all sectors. Small or big, governmental or non-governmental, sole or non-personal/joint businesses all use advertisement for sales promotion of their goods or services. The features of good advertisement are as follows:

1. Non-personal


Advertisement is of purely non-personal nature. In this interaction, face to face or contact or talks between person to person does not take place.

2. Message


In advertisement, the main content is message. It motivates / inspires the customers to buy goods. The advertisement message may be in any form such as oral, written, or symbolic or codes.

3. Sponsored


Advertisement is sponsored by any person, organization, or group. The sponsor should pay certain amount of money for advertisement.

4. Objective


Advertisement is done to achieve certain objective. Without objective, no advertisement of any product or service can be done. Giving assurance, information, notice, message, or reminding etc. is the main objective of advertisement.

5. Cost


Different expenses are needed for advertisement. It is called advertisement expense. Development cost, production cost, media cost, administrative cost etc. are the main examples of cost.

Objectives of Advertising


Although advertising seems simple, it is very challenging and difficult task. It motivates / inspires target groups to buy goods or services by making flow of information. Advertisement has some important objectives, which are given as follows:

1. To inform about product and organization


Many objectives of advertisement can be determined. One of them is to give information to potential customers about goods or services and organization. Information can be given about brand, feature, utility, price importance etc. of the product. It may also be about the location of organization and warehouse. Some short information can be given through press, audio visual etc. considering the availability, cost, situation, nature of product etc. The main objective of advertisement is to give knowledge to potential customers about products and their reliability.

2. To persuade potential customers


The second main objective of advertisement is to reassure / persuade potential customers. The customers do not become ready to buy only getting information about goods or services. So, the customers should be persuaded and made confident towards goods or services. For this, it needs to give comparative information about price, utility, feature etc. of the product. Confidence brings changes in behavior, feeling, thinking, trend etc. of the potential customers. So, the customers get themselves motivated to buy the advertised goods or services. Hence, the main objective of persuading the potential customers is to investigate them to buy products or services at least for experiment or make them give priority to certain brand.

3. To remind customers


The third main objective of advertisement is to remind customers of goods or services. As different advertisements about different products and services can be seen or heard through various means, the customers feel difficult to remember every brand. Similarly, thousands of competing producers advertise their products to divert customers' attention towards their own products. So, customers should be reminded of goods or services through regular advertisement. While reminding them in this way, place of availability, quality, features, price, utility, benefits etc. should be clearly stated.

4. To increase the value of product


The objective of advertisement is also to increase the value of product. There are some advertisements which can increase the value of products and organization. Special advertisement program should be conducted in order to increase value and respect of the product. This sets indelible impression on them about the quality of the product and reliability of the organization.

5. To reassure customers


The fifth objective of advertisement is to reassure customers. They may express concern over their buying decision or feel uneasy. In such situation, if advertisement makes them clear about quality, feature, utility and reliability and importance of the product, they become confident if they are reassured. Such assurance makes them feel, "I am buying the best quality goods." This makes them more loyal to the product as well as to the organization.

6. To add other promotional tools


Helping to different promotional method is also another objective of advertisement. At first, advertisement helps to bring effectiveness in personal selling. Advertisement provides different information about product to the potential customers. So, it is not difficult to persuade the customers to buy goods or services by giving true information. As the customers can get prior information about goods or products through advertisement, they become ready to buy. Similarly, advertisement helps to bring effectiveness in sales promotion. Different methods need to be applied in sales promotion. Sales promotion can be made effective by advertising goods or products, for example, if coupons have been provided, exhibition has been held, discount has been provided, and the customers can be informed about such facilities / chances.

Importance of Advertising


The modern age is the age of advertisement. This task reflects different activities of marketing. It provides information, instruction and education / knowledge to all the customers of target market. So, importance of advertisement has become greater than before. To prove this, it becomes contextual to discuss on the following points:

1. Facilitates mass production


Effective advertisement makes flow of necessary information to the customers. Accordingly, the goods are distributed and sold. Such distribution and selling increase demand for product in different market segments. As a result, the company gets opportunity of mass production of the goods. Production of goods in mass quantity, per unit production cost becomes less, due to which per unit price does not increase and profit margin becomes more.

2. Educates the customers


Good advertisement provides true information to the customers about product or services. Along with this, which product is used for what and for what purpose is also clearly stated. Some products need care while handling / using. Such information is also provided by advertisement. Doing so, the customers get information and can decide which product is suitable for them and which unsuitable.

3. Introduction of new product


An effective advertisement makes the new products familiar to the customers. Short information about quality, features, price etc. of the product contains in it. After the flow of such information, the customers may take buying decision. Besides this, advertisement makes the customers feel necessity of the new product and draws their attention to it. So, the task of advertisement is equally important to give introduction of new product.

4. Information to the customers


Advertisement gives information to the customers about new products and its introduction in market. So, the customers make plan which product should be bought to maintain life standard. All the composition of the product manufacturing, involved elements, handling / using method, manufactured and expiry dates, information about the usability of the product etc. are also given. Quality of the product, price, utility, place of availability, etc. are also included in advertisement. As a result, the customers get clear information about the product. So, providing true information is other important function of advertisement.

5. Maintains the image of organization


Advertisement pays special attention to the brand of quality goods. After such goods have been advertised, the customers get them. When they have once used quality goods, they do not easily change the brand or do not buy goods of other brands. In this way, advertisement makes the customers loyal to the brand and maintains it. Customers demand for the goods of certain company only. It raises the dignity, respect and good image of the company. So, advertisement becomes important for maintaining image, reputation, dignity and respect of the organization.
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Promotion Mix and Factors Affecting Determination of Promotion Mix

Promotion Mix

Promotion is an important tool of marketing. Promotion is used to provide complete information to consumers about goods/products or services. Mostly, consumers are requested to buy goods by marking them clear about quality, service and operation method. In other word, the way or the media of presenting proposal to
customers for buying goods or services is called promotion. This needs various elements. The task of operating such elements as a whole is called promotion mix. Various types of elements are needed. Promotion mix is to provide information about price, quality, feature etc. of the products to the target customers. For this, personal selling, advertising, sales promotion, publication, propagation should be made.

Promotion is related to the communication process. This function plays an important role to fulfill the objectives of company or organization. Personal selling is an important part of promotion. It encourages potential customers to buy goods or services. Seller may directly go to buyers or buyers may go to sellers. Sellers give information about goods, price, quality features etc. to the customers. Personal sale is actually a conversation between seller and buyer. So, the seller should be skillful in his / her activity.

Advertisement is also equally important in promotion. It provides ample information or message to the customers about goods. Message about goods can be disseminated to maximum customers at minimum cost. Different media can be used for advertisement. Audio video, radio, television, film slide etc. can be used for advertisement. Newspaper, magazines, books, pamphlets, etc. also can be used. Hoarding boards, poster, mobiles etc. can be used for advertisement.

Giving information about goods and organization without any cost is called propagation. This creates demands and plays important roles in heightening dignity of the organization. Nowadays, promotional media have become very popular in Nepal. Propagation can be made through publication, photography, press conference, speech writings etc. Propagation is a kind of promotional strategy by which information and messages can be disseminated without any cost. Request to social and political persons also can be used for sales promotion.

Short term motivation to the potential customers for buying goods or services is called sales promotion. It encourages them to buy goods immediately. It becomes more effective if personal sale and advertisement help. Trade fair, exhibition, decoration, free sample, gifts, coupon, discount, credit facility etc. are provided. Attractive packaging also advertises by itself and encourages customers to take buying decision.

Main Elements of Promotion Mix


Factors Affecting Determination of Promotion Mix


Promotion mix consists of five elements / factors. Promotion mixing is very complicated strategic task. Proper promotion mix should be prepared to conduct marketing successfully. Promotion mix is directly affected by promotion objective, promotion budget, nature of market, product life cycle, marketing promotion strategy. They are mentioned as follows:

1. Promotion objective


One of the main factors affecting determination of promotion mix is promotion objective. If the customers are to be given clear information and make them aware about the goods intended to sell, special emphasis should be given on advertisement and propagation. Similarly, if the promotion objective is to make potential customers believe and give assurance to them, personal selling and advertisement become important. If the objective of promotion is to get order / demand, personal selling and sales promotion should be very active. If the promotion objective is to remind the customers, advertisement becomes more important. If the promotion objective is for brand loyalty, advertisement and propagation become important.

2. Promotion budget


Sufficient budget should be arranged for promotional functions. In the lack of budget, promotional works cannot be conducted. So, promotion budget also affects promotion mix determination. A lot of budget is needed for personal / individual selling and advertisement. If sufficient budget has been allocated for advertisement, highly responsive personal sale can be conducted, long term advertisement policy and high amount of budget is also not needed for publicity. It needs only good opportunity for propagation. This makes it clear that promotional activities can be determined on the basis of promotional budget. In this way, the fixed / prescribed budget affects promotion mix.

3. Nature of market


Nature of market also affects promotion mix. If the size of targeted market is very small one, way / method becomes effective, and if its size is big, other way / method becomes effective. If the targeted market is consumers' market, advertisement and sale promotional activities should be conducted. If it is industrial market, personal sales and promotional sale should be conducted. Similarly, if the targeted market is very small and is limited in a certain geographical area, personal selling and advertisement should be emphasized. If the market is big, national and international advertisement and business promotion should be emphasized.

4. Nature of product


Nature of product also affects the determination of promotion mix. Products may be consumer target or industrial. Their information cannot be effectively communicated through same activities. Generally, advertisement becomes important for consumer goods whereas personal selling becomes important for industrial goods. Similarly, advertisement and sale promotional activities become important for the low priced goods, whereas personal selling and local advertisement become important for high priced goods. In the same way, personal selling and propagation should be given emphasis for special goods.

5. Product life cycle


Different stages of product life cycle also affect promotion mix. Every product goes through different four stages after it has been produced. At the introduction stage of goods / products, advertisement and propagation should be given emphasis. After the product enters growth stage, only advertisement becomes sufficient. Similarly, careful attention should be paid to the product at its mature stage. If the product has entered the last stage of its life cycle, personal selling, sales promotion and propagation are needed. Whatever tools can save products, the same should be used for promotion.

6. Promotion strategy


There may be several strategies of promotional activities. They also affect promotion mix. They are mentioned in short as follows:

i. Push strategy

The producers can push their products using their force. In this strategy, products are pushed to the final consumers through distribution channel. Personal selling and trade promotion become important.

Pushing Strategy

ii. Pull strategy

In this strategy, the customers demand goods from retailers. Retailers demand from wholesalers and wholesalers demand from producers. For such strategy, advertisement becomes very important.

Pulling Strategy


iii. Interpersonal strategy

Interpersonal strategy is also one of the strategies. In this strategy, personal selling becomes more important. So, this tool of promotion should be adopted.

iv. Mass communication strategy

If the promotion strategy is in favor of mass communication, sales promotion should be given special importance. Similarly, advertising and publicity are also equally important.

Factors Affecting Promotion Mix Determination

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Meaning of Marketing Mix and Components of Marketing Mix

Meaning of Marketing Mix         


All the activities from market research to satisfy customers’ need is called marketing mix. This included the questions such as ‘What type of goods need to be produced? How to determine price of the goods? How and in which market to present the goods for sale? How to motivate the possible customers to buy the goods? The combination of these components is called marketing mix. Need of targeted market can be fulfilled with proper combination of marketing and success can be achieved in competitive market. James Colleton had first used the word ‘marketing mix’ in 1948. Neil H. Borden carried out a research on the concept of marketing mix in 1964 being influenced by the thought of James Colleton.

Product, place, price and promotion are included in marketing mix. Wants or needs of targeted market can be fulfilled with the proper mixture of these components. But there is no unanimity among writers and experts of marketing over the elements of marketing mix. The following experts and writers have claimed that the elements given below are included in marketing mix:

Albert W. Fray
  • The offering – product, packaging
  • Methods and tools – advertisement, personal selling

J. E. McCarthy
  • Products
  • Place
  • Price
  • Promotion

W. Laxer and E. J. Kelley
  • Goods and services mix
  • Communication mix
  • Distribution mix

Philip Kotler
  • Price
  • Promotion
  • Place
  • Product

Petter D. Bennett
  • Product
  • Price
  • Promotion
  • Distribution

W. J. Stanton, M. J. Etzel & B. J. Walker
  • Product
  • Price
  • Distribution
  • Promotion

The above given facts make us clear that there are differences among experts and writers over the marketing mix. A. W. Fray has supposed offering, methods and tools as the elements of market mix whereas J. E. McCarthy has supposed product, place, price and promotion as the elements of market mix. Similarly, Lazer and Kelley have supposed goods, and services mix, communication mix and distribution mix as the elements of market mix. Philip Kotler has supposed price, promotion, place and product, and Stanton, Etzel and Walker have supposed product, price, distribution, and promotion as the elements of marketing mix. Similarly, Petter Bennett has supposed product, price, promotion and distribution as the elements of marketing mix. The views of McCarthy and Kotler are found same about the marketing mix.

Now, a new concept of marketing mix has been developed. It is called ‘mega marketing’. According to this concept, the six elements of marketing mix are price, promotion, place, product, power and public relation. Different writers and experts have defined marketing mix as follows:

According to Philip Kotler, “Marketing mix is the setting of the firms of marketing decision variables at a particular point in time.”

 

According to William J. Stanton, “Marketing mix is the term that is used to describe the combination of the four inputs that constitute the core of company’s marketing system: the product, the distribution system, the price structure and the promotional activities.”

 

According to Pitter D. Bennett, “Marketing mix is the marketing program including product conception and development, pricing decision, promotion of the product and distribution to consumers.”

 

According to Jerome E. McCarthy, “Marketing mix is the controllable variables, which the company puts together to satisfy its target market.”

 

According to Thomas A. Staudt and Donald A. Taylor, “Marketing mix refers to the actual work that must be done to reach target market and achieve corporate objectives.”

 

In conclusion, the mix of activities done to satisfy the wants of target market is called marketing mix. Products, place, promotion and price are the elements of marketing mix. Organizational goal cannot be achieved without proper mix of these elements of marketing.


Components of Marketing Mix          


The mix of activities done to satisfy the wants of target market is the marketing mix. The writers and experts of marketing are found different in their views about the elements of marketing mix; however, the main elements of marketing mix are products, place, price and promotion. Success can be achieved through the proper mix of these four elements. The following figure makes the elements of marketing mix clearer.

Elements of Marketing Mix

As the first letter of all the four elements of marketing mix is P, it is also called 4Ps of marketing. All these elements of marketing mix have also their own elements. This is made clear by the following figure:-
Elements of marketing mix


1. Product Mix


The thing or material which satisfies the human wants is called product. This is an important element of marketing mix. In its absence, no activities of marketing can be done. Product mix includes the elements such as design of the product, quality, variety, features, specialty, branding, packaging, service, warranty etc. Firm or industry cannot satisfy the wants of target market in the lack of product. So, product, plan and development, standardization, grading etc. should be seriously considered. Only attractiveness in looking does nothing, the product should also be good quality. Otherwise, the product cannot compete in market. Similarly, brand, packaging and labeling of the product also play important role in market. Name or brand of the product should be short, attractive and easily memorable and packaging should reflect the features of the product. Besides, the packaging should be attractive and cost effective. Labeling should give necessary information about the product and the firm should be fully responsible for the information. Warranty should also be given in order to increase the demand of the product in market, because the customers like to buy the products having warranty rather than those of no warranty.

The following points make the elements of product mix clearer:-
  • Quality of product
  • Product design
  • Standardization and grading of product
  • Variety of product/or product line and items
  • Branding of product
  • Packaging of product
  • Warranty of product
  • Features of product
  • Product planning and development
  • Services


2. Place Mix


The other important element of marketing mix is place. The entirety of different activities to supply products to the targeted market is called place mix. Mainly the channel of distribution and the activities related to physical distribution are included in place mix. Distribution channel includes agents, dealers, wholesalers and retailers whereas order processing, warehousing, material handling, inventory management and transportation are included in physical distribution. If the channel of distribution and physical distribution is not good, it affects adversely. So, physical distribution should be made according to the nature of product through proper channel. Generally, direct distribution channel becomes appropriate for receiving and proper means of transport should be used. Considerable quantity of stock should be kept. If the products, in the quantity, to the place and at the time as wanted by customers are supplied, sale quantity can be increased. So, this also should be wisely considered. The following points make it clearer.

The elements that are included in place mix are:
  • Distribution channel
    • Agent
    • Dealer
    • Wholesaler
    • Retailer
    • Direct
  • Physical distribution
    • Order processing
    • Warehousing
    • Material handling
    • Inventory management
    • Transportation


3. Price Mix


The amount to be paid by customers for any goods is called price. Price is the measure of exchange. The price of any goods should agree with the quality of the goods. Price is the other important element of marketing. The price of goods directly affects the quantity of sale. If the price of goods is low, sale becomes high, and if the price is high, sale becomes low. In other words, the lower the price, the higher becomes quantity of sale. So, the price of goods should be minimized by minimizing production cost as far as possible. As the customers pay price for the quality, the utility of the goods should be equal to the price. Otherwise, the goods cannot get popularity in markets and also cannot compete with the substitution goods. While determining the price of any product, all the elements affecting it should be analyzed. Price mix includes discount, terms and conditions of sale, price list, production cost, price of substitute goods, allowances etc. This is made clearer by the following points:

Elements of price mix:
  • Trade or cash discount
  • Credit period
  • Terms and conditions of sales
  • Setting price list
  • Cost of goods
  • Price of substitute goods
  • Allowances


4. Promotion Mix


The other important element of marketing mix is promotion. All activities and efforts to be made in order to increase sale quantity as a whole is called promotion mix. This includes advertisement, publicity, personal selling, exhibition, free sample, request, and pestering. The task sale promotion is creative as well as artistic one. Success can be achieved in the competitive environment by increasing sale quantity through sale promotion activities. In this competitive age, increase of sale quantity cannot be imagined without sale promotion activities. So, the customers should be persuaded to realize the need and be motivated to buy goods. Otherwise, goods of whatever the best quality, they cannot be taken out from warehouse. It is also said that those who become active and dynamic can get success but those who are lazy can get nothing. Even if the goods are bad, promotional activities can create demands for them. But without any sale promotional programme, even the best quality goods cannot be sold. The elements of sale promotion have been presented in the following points for easy understanding:

Elements of promotion mix:
  • Advertising: Radio, TV, Newspaper, Internet etc.
  • Sale promotion: Premium, exhibition, free sample etc.
  • Personal selling: Salesmanship, experience, training, politeness etc.
  • Public relations: meeting and contacting
  • Publicity: Propagation program
  • Service after sale: Exchanging the sold goods, free repairing, instructing who to use and keep safe etc.

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