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Factors Affecting Communication
Communication mixes vary a great deal from one product category and one industry to another. The particular communications mix chosen by a firm will depend on the nature of the product, stage in the product lifecycle, characteristics of the target market, type of buying decision, communications budgets and whether a push or pull strategy will be used. Very importantly, all of these factors are independent and must not be looked at in isolation.
1. Nature of the product
Products can be broadly classified into business or consumer products. Business products are often customized to the buyers’ specifications, and are not suited for mass communications. Producers of business goods such as computer servers and industrial machinery rely heavily on personal selling and advertising would be limited to trade media only. Mass media advertising, if at all used, serves a different objective altogether. Airbus industries uses television advertising directed at mass markets, only to build a positive corporate image, and to correct any miscreptions in the media.
Consumer products can be further classified into convenience, shopping specialty and unsought products. Convenience products being market products rely very heavily on advertising through mass media, supported by sales promotions. Specialty products will use advertising very selectively through targeted media to maintain their products exclusive image. The locations and ambience of the stores plays a major role in communicating the exclusive up market image.
2. Stage in the product life cycle
The product’s stage in the life cycle is a big factor in designing the communications mix. During the introduction stage the basic goal of communication is to create awareness and knowledge about the product strategy. The communication strategy and establish the utility of the product. There is a very heavy reliance on public relations, publicity, supported by advertising and product displays, personal selling is used mainly to obtain distribution.
As the product enter the decline stage, all communications expenditure is cut knack. Some personal selling and sales and trade promotions efforts would be maintained.
3. Target market
Niche market products are characterized by highly informed, brand loyal, concentrated set of customers. The communications strategy is to build long term profitable relationships, very targeted and informative advertising and selective distributions works best for such products. The website is also a very key element of the communication mix for such products.
4. Type of buying decision
The communications depends on the type of buying decisions. For routine buying decisions, like toothpastes and detergents, the communications strategy is to maintain brand recall. Hence reminder advertising is a key element of he communication mix. Consumer sales promotions are used from time to keep the interest in the brand; trade promotions are also a very key element of the mix, and are intended to garner larger shelf space.
For more complex buying decisions, personal selling and advertising become the key elements of the communication mix.
5. Money, or rather the lack of it, can easily be the single most important factor in determining the communications mix. Start ups usually lack funds to use any formal communications tools, and may resort to a very unique communications plan, using only public relations or publicity to achieve their communication goals. Even established organizations, facing a cash crunch may cut back on advertising even it is essential to advertise. Usually firms have to make a tradeoff between the funds available on one hand and the communications objectives and market necessities on the other hand.
6. Push and pull strategy
The last factor that affects the promotional mix is whether a push or pull communications strategy will be used. Firms that use aggressive personal selling and promotions directed to the distribution channels, try to increase inventory levels throughout the distribution channel. Because of the increased stock pressure, retailers try to “push” their products through the channel to end consumers. This is known as a push strategy.
A pull strategy on the other hand, stimulates consumer demand by using advertising and promotion directed to the consumers. As consumers begin demanding the product, retailers, confronted with rising demand, increase their inventory levels of the products. Consumer demand “pulls” the product through the retail channel.
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1. Nature of the product
Products can be broadly classified into business or consumer products. Business products are often customized to the buyers’ specifications, and are not suited for mass communications. Producers of business goods such as computer servers and industrial machinery rely heavily on personal selling and advertising would be limited to trade media only. Mass media advertising, if at all used, serves a different objective altogether. Airbus industries uses television advertising directed at mass markets, only to build a positive corporate image, and to correct any miscreptions in the media.
Consumer products can be further classified into convenience, shopping specialty and unsought products. Convenience products being market products rely very heavily on advertising through mass media, supported by sales promotions. Specialty products will use advertising very selectively through targeted media to maintain their products exclusive image. The locations and ambience of the stores plays a major role in communicating the exclusive up market image.
2. Stage in the product life cycle
The product’s stage in the life cycle is a big factor in designing the communications mix. During the introduction stage the basic goal of communication is to create awareness and knowledge about the product strategy. The communication strategy and establish the utility of the product. There is a very heavy reliance on public relations, publicity, supported by advertising and product displays, personal selling is used mainly to obtain distribution.
As the product enter the decline stage, all communications expenditure is cut knack. Some personal selling and sales and trade promotions efforts would be maintained.
3. Target market
Niche market products are characterized by highly informed, brand loyal, concentrated set of customers. The communications strategy is to build long term profitable relationships, very targeted and informative advertising and selective distributions works best for such products. The website is also a very key element of the communication mix for such products.
4. Type of buying decision
The communications depends on the type of buying decisions. For routine buying decisions, like toothpastes and detergents, the communications strategy is to maintain brand recall. Hence reminder advertising is a key element of he communication mix. Consumer sales promotions are used from time to keep the interest in the brand; trade promotions are also a very key element of the mix, and are intended to garner larger shelf space.
For more complex buying decisions, personal selling and advertising become the key elements of the communication mix.
5. Money, or rather the lack of it, can easily be the single most important factor in determining the communications mix. Start ups usually lack funds to use any formal communications tools, and may resort to a very unique communications plan, using only public relations or publicity to achieve their communication goals. Even established organizations, facing a cash crunch may cut back on advertising even it is essential to advertise. Usually firms have to make a tradeoff between the funds available on one hand and the communications objectives and market necessities on the other hand.
6. Push and pull strategy
The last factor that affects the promotional mix is whether a push or pull communications strategy will be used. Firms that use aggressive personal selling and promotions directed to the distribution channels, try to increase inventory levels throughout the distribution channel. Because of the increased stock pressure, retailers try to “push” their products through the channel to end consumers. This is known as a push strategy.
A pull strategy on the other hand, stimulates consumer demand by using advertising and promotion directed to the consumers. As consumers begin demanding the product, retailers, confronted with rising demand, increase their inventory levels of the products. Consumer demand “pulls” the product through the retail channel.
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