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Firms use various elements to achieve their promotional objectives. Promotion consists of two components: personal selling and non-personal selling. Personal selling is a promotional presentation made on a person to person basis with a potential buyer. On the other hand, non-personal selling is when the presentation does not involve person to person presentation. It consists of advertising, sales promotion, and public relations. The promotion mix is a combination of personal selling and non-personal selling that is built to persuasively communicate customer value and build customer relationships. This paper is produced to explain the element of promotion mix relating to what is used by Boom Detergent Paste.
Citation preview
FACTORS AFFECTING PROMOTION MIX OF BOOM
DETERGENT PASTE
Firms use various elements to achieve their promotional objectives.
Promotion consists of two components: personal selling and non-personal
selling. Personal selling is a promotional presentation made on a person to
person basis with a potential buyer. On the other hand, non-personal selling
is when the presentation does not involve person to person presentation. It
consists of advertising, sales promotion, and public relations. The promotion
mix is a combination of personal selling and non-personal selling that is built
to persuasively communicate customer value and build customer
relationships. This paper is produced to explain the element of promotion
mix relating to what is used by Boom Detergent Paste.
Marketers of Boom detergent paste attempt to develop a promotional mix
that effectively and efficiently communicates their message to targeted
market by figuring out an appealing way or theme that will produce a desired
response. The choice of an effective promotional mix element represents
one of marketers’ most difficult tasks because their choice is highly affected
by the following factors:
NATURE OF THE PRODUCT
The type of promotional-mix will differ depending upon the nature of the
product. In case of sale of consumer products, advertising, publicity and
sales promotion are necessary in addition to personal selling. But in order to
push up industrial goods, personal selling is much more effective because its
market is easily identifiable and products are often made to specifications
and a great deal of pre-sale which is not the case with Boom Detergent Paste
as it is a consumer product.
Packaging:
Packaging performs the self-promotional function in addition to protecting
the product. By incorporating creativity in its design, a package can add the
“pick-me-up” appeal to the product and also helps to communicate the
product features. Boom Detergent Paste use packaging to take advantage of
this element and minimize the cost of promotion.
Degree of Customization:
The product, whether standardized or adapted to the customer's special
needs, is responsible for the type of promotional efforts that might be
adopted. For example, generally, the more the standardization the more it
would attract need for more advertising and sales promotional activities and
least personal selling efforts because the product (in such case) has to
satisfy more general needs of the customers. In a case of Boom Detergent
Paste, there is less personal selling and more advertisement because the
nature of Boom Detergent Paste is not customized for each particular
customer.
PRODUCT LIFE CYCLE AND AIM OF PROMOTION
Advertising can be subdivided by its purposes: to inform, to persuade, or to
remind consumers. Each category of advertisement is selected depending on
the stage at which a product is at.
Informative advertising is intended to build initial demand for a
product, and it is usually used in the introductory phase of the product
life cycle. When Trade Kings Malawi formally introduced Boom Detergent
Paste in Malawi eleven years ago – the nation’s first paste soap – it
launched a massive advertising campaign directed at consumers on the
benefits of using paste soap for washing and also to eye-care
professionals to explain the health benefits of using the new product.
Persuasive advertising attempts to improve the competitive status of
a product. It is used in the growth and maturity stages of the product life
cycle. The main purpose is to make an effective step to face the
competition in the market.
Reminder-oriented advertising is used in the late-maturity and
decline stages of the product life cycle and attempts to keep a product's
name in front of the consumer or to remind people of the importance of
the product.
Since Boom Detergent Paste was introduced in Malawi in 2001, Trade Kings
used informative advertisements that provided awareness to the consumers.
But now that the product has gained a 35 percent of the market share over
the past years and competitors such as Omo, Sunlight, Surf and other
detergent soaps taking up the remainder of the market, Trade Kings has
shifted to a persuasive advertising approach.
One of the most popular approaches to persuasive product advertising used
in Boom Detergent Paste promotions is comparative advertising. This is
where Trade Kings makes a direct comparison between their product and
that of their competitors. It shows weak areas of the competing products, for
example in one of its live Television advertisement it showed how clean and
how much clothes, Boom can wash while comparing to what consumers
viewed as the best in the market. Each customer would choose a detergent
soap in a regular shop that they preferred and it would compete with Boom
Detergent paste.
Another angle of viewing the effect of aims of promotion on the choice of a
promotion mix is the use of AIDA concept- Awareness; Interest; Desire; and
Action. If marketers of Boom Detergent Paste wants to give one of these
messages to the consumers then they will have a differing choice in the
promotional mix tools to use. The figure below illustrates the effective and
efficient way Trade Kings use its promotion mix tools.
NATURE OF THE MARKET
The choice to determine a particular combination of Promotion mix is also
greatly influenced by the target market characteristics such as level
of competition, geographic coverage, and buyer readiness stage:
Level of Competition:
The type of competition existing in the market is one of the factors which can
affect the penetration of the product. When Boom Detergent Paste was
introduced in Malawi, the market had other competing products and this
influenced the marketing team of Trade Kings to emphasis on heavy radio
and television advertisements that mainly aimed at gaining competitive
advantage. Even today, when one think of Boom Detergent Paste we always
associate the product with their theme song that they used to gain the
competitive advantage. The promotional efforts matched the level of
competitors and now it is one of the main market owners. Sales promotions
are also used in highly competitive marketing environment like trade fairs
and shopping centers.
Geographic Coverage:
In a case of wide market coverage, advertising and sales promotion are
desirable. For example, to inform consumers that Boom detergent paste is
widely available at competitive prices, high promotional campaign is
launched by Trade Kings. However, if the product is available in local area,
personal selling becomes more important. This can be seen from the
promotional efforts of distributors of Boom Detergent Paste who sell the
products in their residential premises.
Buyer Readiness Stage:
The promotional mix becomes a tool to prompt the buyer to prepare and
accept the product being offered. The type of Promotional efforts required
would depend upon the buyer's own readiness stage. Marketers’ view at
these stages and the promotion desired is given ' below (See Table)
For example, when promoting Boom Detergent Paste, the marketing team
thinks customer conviction is mostly influenced by personal selling and
less by advertising and sales promotion. Further, advertising and publicity
are most effective at the early stages of buyer decision process, and sales
promotion and personal selling dare most effective in closing the sale and
reordering.
FUNDS ALLOCATED TO PROMOTION
The allocation of funds by the top management for the promotional activities
must be kept in mind by the marketing manager while determining the
promotional-mix. A firm with huge promotional budget can spend on all
promotional activities. But a marketer with financial constraints will be
selective in the use of promotional activities. Personal selling is cheaper and
more effective in the short-run. Advertising in reputed magazines
newspapers and journals is very costly, but can attract the status conscious
customers towards the product and advertisements have a carryover effect
that last beyond the current period.
Trade Kings is a large company that also produces many other products and
not Boom Detergent Paste alone and this means it can only allocate a limited
budget to advertising and promotion of Boom Detergent Paste. It only
allocates approximately 3 percent of sales to advertising and promotion.
Because of its limited budget, marketers at Trade Kings have to be creative
in the tactics they use and to the decisions they have to make in choosing an
effective and efficient promotion mix tools. For example, to induce trial
promotions in new markets, Trade Kings provides products at a price lower
than the cost price and sometimes even free products in their retail markets
and promotional campaigns. Trial is important since the benefits of the
products are often perceived only when the person actually uses the
product. Therefore, Boom Detergent Paste is highly influenced by how much
funds is allocated to its promotional budget.
PRICE
The pricing of product can broadly decide the type of promotion mix a
marketer has to undertake. In a case of Boom Detergent Paste, advertising
dominates the promotion mix because the product is considered as having
low value. This is due to the low promotional expenditure per sales unit
associated with advertisements because it reaches mass audience and
having large impact on consumer buying decision. Personal selling, in
contrast, permits a high promotional expenditure due to high per contact
costs.
The element of price in determining which promotion mix tool to use enable
Trade Kings marketing team to make a sound decision that efficiently
deliver a message that should get attention, hold interest, arouse desire, and
obtain action from consumers.
There is no tailor-made promotional-mix for a firm. Every firm has to design
its own promotional-mix, and even Trade Kings determine the various
promotional tools to be used for promoting the sale of Boom Detergent
Paste. Their Promotional strategy is determined by various combinations,
types and degrees of personal selling, advertising and other forms
of promotional tools and they are brought together into a promotional-mix to
develop a final promotional strategy. The managerial decision in deriving to
an effective and efficient promotional strategy is based on the described
factors.