Factors influencing promotion mix

Promotion is one of the important elements for a business concern.  Because it enables the consumers to get the information about the product and services. So the entrepreneur should decide how to use the promotion mix by looking various factors influencing a promotion mix.

              What is the product? This question answers what is the nature of product.  Fast moving goods like grocery, drugs etc require huge level of advertisement. Whereas industrial goods need personnel selling. Also the question   which is the market? This question answers what kind of market to which the products are targeted. For an industrial market, advertisement creates information, while consumer market promotion creates information and persuading people to buy the products. What is the stage of life cycle of the product is another factor. This is the one of the important question for making promotional budget. Because for an introduction stage, there should be huge expense for promotion. In growth stage, there should be comparatively less promotion. In maturity there should be enough promotion to face competition and maintain market share. During decline there should be less expenditure. This is possible only by reducing the advertisement budget.

     The size of the market becomes crucial for the promotion mix. A market consists of few buyers and sellers need only personnel selling. But for a huge market with high number of buyers and sellers, there should be various kinds of promotional tools to be used. Also the question of how much is the fund available is the most expensive question to begin anything. What is the fund available in the hand determines to select whether there is a huge budget for advertisement or publicity or personnel selling methods. Price of the product is another factor comes under consideration. The price of a product is reduced or increased mainly due to the influence of promotion. Majority of the cost of a product usually comes as part of cost of sales promotion. The pricing strategy sometimes restricts to reduce to lower level. This results in reducing the promotion expenses.