PROMOTIONAL POLICY

PROMOTIONAL POLICY

As defined by the American Marketing Association Bulletin (1999) promotion as “a process of communicating with individuals, group or organization’s products”.

The association maintains that promotion includes advertising and publicity that stimulates consumers to purchases, and seller’s effectiveness such as displays, exhibition or shows, demonstration and various non-current efforts not in the ordinary.

A major aspect of this policy strategy is to decide how much effect is to be placed on mass media, personal selling, and consumer advertising. In the extreme case, a firm may have no sales.

Pricing policy of a firm depends on the degree to which a firm has control its price are set in the market place; by customer or any means beyond the control of the firm, there is need for the firm to have pricing policy at all except to sell or not to sell out at the given price.

The starting point in establishing a firm’s pricing policy is to specify the degree of control that the firm has over price of its products seem to vary according to product characteristics.

Pricing policies are established with regards to:
i) The degree of variation from consumer to consumer
ii) The degree of adherence to list price versus dependence on negotiating new price for each sale.