I need help with answering the following:
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.
Below you will find a few points to help you compile your answer:
There are three types of sales promotion tools that are applied in the business world:
1. Consumer-promotion tools
2. Trade-promotion tools
3. Business-and Sales-Force-Promotion Tools
For the first two given situations, consumer promotion tools can be applied.
In scenario (1) where a firm is trying to sell its improved razor blade to consumers that are not motivated to buy them, the firm can use any of the following consumer-promotion tools:
Samples: free samples provided to target consumer market.
Coupons: send coupons that offer savings on the razor blade by mail which will motivate them to use the coupon next time they go shopping. ...
Marketing and sales promotions are examined for a big grocery chain.