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Deciding on the Right Type of Sales Promotion

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Indicate the type of sales promotion that a producer might use in each of the following situations and briefly explain your reasons:

(1) A firm has developed an improved razor blade, but customers are not motivated to buy it.
(2) A competitor is about to do a test market for a new brand and wants to track sales in test market areas to fine-tune its marketing mix.
(3) A big grocery chain will not stock a firm's new popcorn-based snack product because it does not think there will be much consumer demand.

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1. The best sales promotion to use is a free sample. Free samples would be distributed to various groups of potential consumers, as a means to spark interest in the product. Because the demand is low for the razor blades, by giving the customers a free sample, it would encourage basically a "nothing lost" circumstance. The customers would be able to try the product for free, and if they liked the product, the ...

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