Market Coverage Decisions

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Question 1

Introduction

Marketing distribution channels play a big role in the marketing process, the marketing team will have to decide to what extent they want to distribute the product and in what market segment they wan to place it. Packaging has the duel function of protecting the product and also of advertising the product, thus it is of great importance to use the right type of packaging.

a. Market coverage decision

Intensive coverage; is where the manufacturer of a particular product requires that the product receives maximum market exposure in the specific geographic domain. (Strydom & Jooste, 2007:418) Thus the manufacturer will try exposing it to as many as possible outlets to optimize sales. The products that are usually sold thru intensive market coverage is inexpensive, often purchased and requires little shopping effort- thus it is also a convenience product.

Selective coverage; when a channel strategy is followed that limits the availability of the products to certain outlets it is called selective coverage. (Strydom & Jooste, 2007:418) Certain outlets will be selected considering they comply with a certain pre-set criteria. The products used in the selective coverage channel are usually more expensive and are mostly in the shopping products category.

Exclusive coverage; is products that are only sold to a single or a few selected outlets in a large geographic region. The main advantage of exclusive coverage is that it reduces intra branding, a certain outlet will only be responsible for a single brand, and thus only that particular brand or product is promoted. On the outlets side, the supplier would usually give a certain domain right to that outlet, thus only that outlet promote that certain brand in that certain geography.

b. I would suggest that Cadburys use the intensive coverage distribution channel. The reason for that is because the Cadburys Boost is a Convenience product; it should be available to as many outlets as possible. It is a product that is less-expensive, which are frequently purchased by a large number of consumers and requires little effort to purchase

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c. Packaging

Family or individual packaging; The marketing team needs to decide if they are going to use individual packaging for every product or family packaging. Family packaging is the same principals are used for a line of products. •Special packaging; To give the product an exclusive image. •Reusable packaging; Is packaging with more than the function of protection of the contents, it re-used in a different form for whatever purpose. Some people collect coffee tins which is an example of reusable packaging. Some times customers purchase reusable packaging products not just for the contents but also for the functionality of its packaging. It is also a good form of marketing considering that the consumer is exposed to the advertisement every time he/she uses the packaging. •Multiple packaging; When related products are packaged in the same container this strategy is useful to win brand recognition as well as to introduce new products. This type of packaging is also used when the producer want to create the image of value with the client, cosmetics company would say include lipstick, eye shadow, and perfume in the same multiple packaging. •Kaleidoscope packaging; The intention of this type of packaging is to create a demand for the particular product by creating a demand for the packaging, this would be done by the producer by altering different details to the packaging. The certain details which are altered are usually contemporary with the times.

Question 2.

a. Sales promotions

Sales promotions are incentive tools to promote sales in the short term. Promotions encourage customers and the industry to buy the producers products and are action focused. When sales promotions are considered there are three distinct audiences that should be targeted the...
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