Sales Promotion: Choosing Methods Flashcards
Enterprises will be influenced by several factors when choosing the most suitable sales promotion methods.
What factors influence enterprises when choosing the most suitable sales promotion methods?
The factors that influence enterprises when choosing the most suitable sales promotion methods are:
1) The size of the enterprise
2) The type of product
3) The product lifecycle
Enterprises will be influenced by several factors when choosing the most suitable sales promotion methods: The size of the enterprise, the type of product and the product lifecycle.
1) The size of the enterprise:
Large enterprises …
1) The size of the enterprise:
Large enterprises with a large customer base may have the financial resources to use sales promotion methods which impact on profit
Enterprises will be influenced by several factors when choosing the most suitable sales promotion methods: The size of the enterprise, the type of product and the product lifecycle.
1) The size of the enterprise:
Large enterprises with a large customer base may have the financial resources to use sales promotion methods which impact on profit. Smaller enterprises …
Smaller enterprises may not be able to afford the cost of free samples, competitions or money-off vouchers.
Their scope for scales promotion may be more limited
Enterprises will be influenced by several factors when choosing the most suitable sales promotion methods: The size of the enterprise, the type of product and the product lifecycle.
2) The type of product:
Some methods of sales promotion are …
2) The type of product:
Some methods of sales promotion are more suitable than others, depending on the product
Enterprises will be influenced by several factors when choosing the most suitable sales promotion methods: The size of the enterprise, the type of product and the product lifecycle.
2) The type of product:
Some methods of sales promotion are more suitable than others, depending on the product.
Can you give an example?
For example:
1) Money-off vouchers and free samples are more suitable for lower priced products
,while
2) Buy one get one free (BOGOF) would be inappropriate for expensive or luxury items, like a car
Enterprises will be influenced by several factors when choosing the most suitable sales promotion methods: The size of the enterprise, the type of product and the product lifecycle.
3) The product lifecycle:
The cost of sales promotion can reduce profits, so …?
3) The product lifecycle:
The cost of sales promotion can reduce profits, so enterprises need to decide the most suitable times to use them
Enterprises will be influenced by several factors when choosing the most suitable sales promotion methods: The size of the enterprise, the type of product and the product lifecycle.
3) The product lifecycle:
The cost of sales promotion can reduce profits, so enterprises need to decide the most suitable times to use them.
What is the lifecycle of a product?
The lifecycle of a product is when the product passes from development and launch to when it is removed from the market
Enterprises will be influenced by several factors when choosing the most suitable sales promotion methods: The size of the enterprise, the type of product and the product lifecycle.
3) The product lifecycle:
The cost of sales promotion can reduce profits, so enterprises need to decide the most suitable times to use them.
The lifecycle of a product is when the product passes from development and launch to when it is removed from the market.
During the lifecycle of a product, …
3) The product lifecycle:
During the lifecycle of a product, incentives may be used to increase sales or encourage customer loyalty
Examples of sales promotions during the product life cycle:
At the start, when the product is launched on the market:
At the start, when the product is launched on the market:
1) Buy one get one free (BOGOF)
2) Free samples with discount coupons
3) Competitions
are used to create a customer base
Examples of sales promotions during the product life cycle:
At the start, when the product is launched on the market:
Buy one get one free (BOGOF), free samples with discount coupons and competitions are used to create a customer base.
After a while, what happens?
After a while:
1) Sales of the product increase
2) Money-off vouchers are used to increase the size of the market
Examples of sales promotions during the product life cycle:
At the start, when the product is launched on the market:
Buy one get one free (BOGOF), free samples with discount coupons and competitions are used to create a customer base.
After a while, sales of the product increase and money-off vouchers are used to increase the size of the market.
Then, what happens?
Then:
1) There are steady sales
2) Loyalty incentives encourage customers to keep buying the product
Examples of sales promotions during the product life cycle:
At the start, when the product is launched on the market:
Buy one get one free (BOGOF), free samples with discount coupons and competitions are used to create a customer base.
After a while, sales of the product increase and money-off vouchers are used to increase the size of the market.
Then, there are steady sales and loyalty incentives encourage customers to keep buying the product.
After this, what happens?
After this:
1) The sales decline
2) Buy one get one free (BOGOF) and discounts get rid of surplus items
