The important factors which influence the managerial decision about the promotional mix of a firm are given below:
1. Nature of Product:
The selection of promotional method depends upon the nature of product For example, industrial goods being highly complex and technical in nature require personal selling whereas convenience goods depend on advertising and display as they are lowly priced and frequently purchased.
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2. Life Cycle of Product:
ADVERTISEMENTS:
In the introduction stage, the consumers are unaware of the product, therefore, advertising is extensively used so as to stimulate primary demand. In addition to advertising emphasis is also placed on personal selling, trade shows, demonstrations, exhibitions, publicity, etc.
In the growth stage, consumer is aware of the uses and attributes of the product. Advertising is done to promote selective demand and to keep the buyer away from competitor’s brand.
During the maturity stage creating brand preference and maintaining brand loyalty becomes utmost important. Therefore, emphasis is placed on advertising and sales promotion. In the decline stage promotional efforts are reduced to minimum.
3. Size of Budget:
Selection depends on cost of media and availability of funds Firm with low budget depends mainly on local newspapers, outdoor advertisements, wall writings, etc.
4. Nature of Competition:
ADVERTISEMENTS:
The promotional efforts must match the level of competition. There is a general tendency to go for high advertising, sales promotion and personal selling when there is highly competitive environment.
5. Promotional Strategy:
The choice promotional tools depends whether a company adopts push or pull strategy. In case of push strategy, personal selling and sales promotion play a vital role. On the other hand, pull strategy stimulates demand of end-consumer so that they may ask retailers for the product.