Marketers try their best to ensure that their products end up in the baskets of consumers in the market. Therefore, they use all tools of marketing to create awareness among potential buyers and also use tools that can influence purchase decisions among buyers. Consumer promotion by giving free products attached to items bought may influence customer decision hence causing impulse buying. For example, if a customer comes across a loaf of bread with a sachet of margarine attached, they might end up buying the loaf in order to enjoy the free sachet of margarine (Lee and Johnson, 2005). Giving discounts on products purchased is the best sales promotion that can influence consumers to switch brands. This is because consumers always go for cheap and quality products hence they can prefer brands which are discounted leading to switching of brands.
There are several consumer sales promotion tools applied by marketers to increase sales. For example, there is the “more for fewer” scheme whereby additional quantity of the product is put in the same packet and sold at a less price. This influences consumer buying because they buy knowing that they are to enjoy the additional product at no fees. Another tool is giving free samples to consumers for every product they purchase (Lamb et al, 2011). This can be a strong incentive to consumers since they know that they will be rewarded by a free sample for every product they purchase. In fact, most customers go telling their friends about the free sample hence helping in creating awareness and increasing sales. Price offs or discount is another crucial consumer sales promotion tool which attracts many consumers to come, and buy the brand which has a price off. This can cause consumers to purchase a lot of goods without budgeting simply because they are selling at reduced prices.
Trade sales promotion is similar to consumer sales promotion in the sense that both are aimed at creating awareness and increasing sales of given products. Marketers have to spend much time and resources in inducing both consumers and other players in the channel to buy their products. Another similarity is that incentives are dished out to encourage channel members to push customers to buy products of a given company. Consumers too are given incentives in order to buy the new product in the market hence creating awareness. The difference between these sales promotions is that one happens at the consumer level while the other happens at distribution channel levels. These include retailers and wholesalers together with other members of the distribution channel. Sales promotion tools for the two differ, as well (Lamb et al, 2011). For example, with the trade sales promotion, they have a point of purchase displays and other incentives such as short term allowances. In consumer sales promotion, incentives are given to the consumer in terms of discounts and free samples.
Personal selling is extremely valuable in marketing because it involves sales people mingling with consumers directly. This creates a plat form where consumers ask questions regarding the product and the sales person explains all details. In the process of explaining the details of the product, the sales person gets a chance of convincing customers to buy. Customers end up being satisfied as they get to interact with sales personnel who even demonstrate how to use the products. Personal selling is advantageous than other methods of promotion because sales people interact with their consumers physically. It provides room for follow up of customers to get feedback about the product already purchased.
The pricing strategy chosen by this company has vastly reflected on the product whereby the company produces quality products. This ensures that customers will get the value of their money when they purchase those brands. Location of the target market is another factor that influences pricing strategy. Since the company has to make its profits, prices for the products must be in a way such that they cover the logistic costs involved (Lee and Johnson, 2005). Promotion is another every important factor in setting prices for products because one has to consider the cost to be incurred in carrying out promotion. All these prices have to be channeled to the consumer hence affecting the final price of the product.
Demand for Acid+All is elastic because there are also other players in the market selling similar products. This means that the company has to work extra hard to win customers from the competitors hence making the demand elastic. Elasticity in demand means that it is not constant but can increase and decrease depending with the situation in the market.
Product life cycle plays a hugely significant role in setting up retail price because it helps one to know how much the products demands from its developers. Since every stage in product life cycle requires different attention, expenses too differ hence affecting the retail prices.
I would not purchase Acid+All at $3.89 because competitors sell their products for as little as $3.50 hence making them cheaper. This means that many consumers will opt for the cheap brands of the same quality.
Lamb, C. W., Hair, J. F., Jr., & McDaniel, C. (2011). Marketing: 2011 custom edition (4th ed.). Mason, OH: South-Western Cengage Learning.
Lee, M., & Johnson, C. (2005). Principles of advertising: a global perspective. New York: Routledge.