“Promotion and Pricing Strategies”
Please respond to the following:
• Select a product you use every day and determine the single most effective way to promote that product to the widest possible audience. Explain your rationale.
Toothpaste! Let’s say I am Colgate-Palmolive and I market Colgate toothpaste. If you go to the toothpaste aisle there are dozens of types of Colgate. I would pick the one type of Colgate toothpaste I wanted to promote, Colgate Total Advanced Whitening, for instance, and have that be the sample given out in every dentist office across America. I would also give it out in cardiac doctor’s offices (oral care influences heart health) and run a promotion that states “Colgate Total Advanced Whitening: when you want the best dental care.” Could also do giveaways in primary grades during National Dental Week to get children to influence parents. This would blanket the market and make consumers think that there was finally a solution as to which toothpaste was the very best one to choose. Right now most of us choose a toothpaste based upon what we grew up using or price.
Considering the same product, determine the best possible pricing strategy to maximize profits. Explain your rationale.
As far as price I would survey the market and price the Advanced Whitening paste at National Brand pricing level, middle of the pack, I could add coupons to the dental/doctor giveaway to encourage purchase but wanting to maintain full margin and have a premium brand I would not discount the product on the shelf. I want the customers to know that they are getting superior toothpaste, not a discount, off priced product.
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