1. Describe the consumer segments and a typical consumer buying decision-making process. consumer segment:
Income over $75,000, income under $75,000
Consumer buying decision-making process:
problem recognition, information search, alternative evaluation, purchase decision and post-purchase behavior.
2. Summarize Culinarian’s strengths and weaknesses. Do you think it makes sense for Culinarian to emphasize push or pull promotions? strengths:
a. Advanced performance technology
b. Strong relationships with retailers
c. Experienced sales managers
d. consistency of marketing image
e. deliberated marketing strategy and implementation
a. Flawed consulting study data of price promotion
b. Few marketing campaigns
c. Monotonous promotions
d. Dated brand image positioning
To some extent, it makes sense. Culinarian takes a good advantage of utilizing push promotion for their premium cookware products. Because 55% of consumers with income over $75000 would be drawn to stores with attractive displays or informed staff to shop for cookware. In addition, 20% of them would respond to a sale and only 10% would respond to multimedia advertising. At the same time, Culinarian have sales 12 visits per year while other competitors only have 6. It also offers a higher retail margin for its products which is 52% and builds an incentive program for retail clerks. According to the above analysis, the majority of the market would respond positively to the push tactics. However, Culinarian’s pull promotions are relatively ineffective. Managers of Culinarian always focus so much on advertising expense which is higher than average, that is, 4% of sales versus 3% of premium competitors. Meanwhile, some of them ignore that price promotions are beneficial to a pull strategy.
3. Was the 2004 promotion profitable? Calculate the profitability using Brown’s and theconsultant’s logic. How would you calculate it?
According to the...
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