The promotional mix refers to:

• A. The process of setting the price for a new product based on market demand.
• B. The combination of advertising, personal selling, sales promotion, public relations, and direct marketing used by a company to promote its products or services.
• C. The calculation of the break-even point for a company's promotional campaign.
• D. The method of distributing products to customers through various channels.

Answer: (B)

Verified step by step guidance

1. Step 1: Understand the concept of 'promotional mix' in marketing and financial accounting. The promotional mix refers to the combination of strategies and tools a company uses to promote its products or services effectively.
2. Step 2: Break down the components of the promotional mix. These typically include advertising, personal selling, sales promotion, public relations, and direct marketing. Each component plays a unique role in reaching the target audience and achieving marketing objectives.
3. Step 3: Analyze the options provided in the problem. The correct answer should align with the definition of the promotional mix, which focuses on the combination of promotional strategies rather than pricing, break-even analysis, or distribution methods.
4. Step 4: Eliminate incorrect options by comparing them to the definition of the promotional mix. For example, setting the price for a product or calculating the break-even point are financial decisions, not part of the promotional mix. Similarly, distribution methods pertain to logistics, not promotion.
5. Step 5: Confirm the correct answer as the one that matches the definition of the promotional mix: 'The combination of advertising, personal selling, sales promotion, public relations, and direct marketing used by a company to promote its products or services.'