How may a promotion budget be allocated among advertising, personal selling, and sales promotion? Can a simulation model be developed to figure out an optimum promotion mix?
What will be an ideal response?
The promotion-mix strategy should be reviewed periodically to incorporate changes necessitated by environmental shifts both inside and outside the company. Promotional blending requires consideration of a large number of variables. However, the effect of these variables on promotion is stated only in generalizations. This makes it difficult to assign quantitative values to each influencing factor. These factors are concerned with the product, market, customer, budget, and the marketing mix. The present state of the art is such that the cause-and-effect relationship between these factors and promotion is not sufficiently understood to permit knowledgeable forecasts of what to expect from alternate promotion mixes. Even identifying feasible alternatives can prove difficult. This makes the use of a simulation model to develop the optimum promotional mix difficult.
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