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Major External and Internal Factors That Influence the Promotional Mix Essay Example

  • Category:
    Marketing
  • Document type:
    Essay
  • Level:
    Masters
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5Major External and Internal Factors That Influence the Promotional Mix

Introduction

With increases competition and dynamism in the contemporary markets, marketers have been forced to employ a number of strategies to remain competitive and gain competitive advantage. Most marketers acknowledge that a number of factors, both internal (within the organization) and external (outside the organization), often affects the promotional mix just like any other activity undertaken in an organization (Charles, et.al 2008). These factors have a significant impact on the success of the promotional mix. This paper lists the internal and external factors that affect promotional mix.

External factors

1. Public relations

An organization that has a sound public relation with its clients will create a positive image and thus its goods and services will be preferred to those of competing organizations. On the other hand, if organizational public relations are poor this will adversely affect the promotional mix (David et.al 2009)

2. Target market characteristic

These are the attributes of the targeted population, which include purchasing power, their preferred line of commodities, their culture, and religious beliefs etc; these will have a positive or e negative impact on the promotional mix.

3. Action of competitors

In every promotional mix, one has to have a keen interest on the actions of the competitors. Always competitors will work hard to make sure that their products remain top on the list of customers’ choice. This call for routine review of strategies to make sure that the competitors do not take unnecessary advantage (Richard & Gary 1995)

4. Type of buying decision

This can be either a complex or a routine decision by the customers. For routine customer decision, most of the promotion emphasis should be on the brand name while for complex customer decisions they will need more information to do with the product so as to make a decision (MAR110 2008).

Internal factors

A number of internal factors will influence the promotion of a particular good or service. These factors include

  1. Type of the product

This concerns the characteristics of the product itself, which may have an impact on the promotional mix. Products can be viewed as convenience goods, shopping goods or specialty goods. Promotional mix has been found to be more successful when one is dealing with shopping goods compared to the rest even though this will also be affected by the clients one is dealing with thus affecting the client choice of the products.

  1. Available funds

For an organization to effectively undertake its promotional mix and attain its objectives then spending is unavoidable. Availability of the funds will have a positive impact while scarcity of funds will have a negative impact.

  1. Stage in the product life cycle

Products have different stages which include; introduction, growth, maturity and decline. During the early stages of introduction and growth there is need for heavy promotional mix because the product is new in the market so as to enable it achieve maturity. During the decline stage, the promotion and public relations are greatly decreased.

  1. Push and pull strategy

The manufacturer of the product may decide to carry out aggressive advertisement and selling of the product. This is called push strategy as opposed to pull strategy, which aims at arousing the customers’ demand of the product (Michael 2001).

References

Charles, W., Joseph F., Hair, Jr., & Carl McDaniel. (2008). Essentials of marketing
London: Cengage Learning.

David, L., Kurtz, H. F., & Mac, W., (2009). Contemporary marketing: London: Cengage Learning.

Richard, J., & Gary J. (1995).Principles of marketing: a global perspective. New York: South-Western College Publishing.

Shah, K. (2009). Advertising N Promotion:
New York: McGraw-Hill Education.

MAR110, (2008). Marketing Concepts. Sedney: Commonwealth of Australia.

Michael, O. (2001).Health promotion in the workplace. London: Cengage Learning.