MARKETING II(post case analysis)
Sales Promotion is a key ingredient in marketing campaigns which consists of a collection of incentive tools, mostly short term that are designed to stimulate quicker or greater purchase of particular products or services by consumers or the trade.
Sales contests/incentives: Aims at including the sales force or dealers to increase their sales results over a stated period, with prizes (money, trips, gifts or points) going to those who succeed
Appropriateness: From the findings of the 2003 survey, 50% would buy new cookware even without price discount or a free gift => retailers who are already carrying all the four lines owing to its greater GM compared to competitors, would be induced to promote the brand by featuring, displays, etc. This stimulates sales clerks to push the products further more improving the brand awareness (15% for under $75000 and 25% for above $75000 – much lower than close competitors) as only 15% would consider upgrading to higher end products and improves off-season sales which were very low.
Promotion allowances: volume rebate/ quantity discount
Appropriateness: There is a possibility of forward buying problem, wherein retailers buy a greater quantity during the deal period and the manufacturer will have to bear costs of extra work shifts. Since the manufacturer is giving a 4% points additional benefit on GM to retailers over the competitors, giving a promotion allowance might not yield as many benefits as anticipated. However, an equal amount could be spent on advertising/display allowances as the channels chosen are upscale kitchen specialty chains, department stores and local specialty stores.
Sweepstakes involve marketing promotions targeted toward generating enthusiasm to purchase among customers by enticing consumers to submit free entries into chance draws that are tied...
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