Author Question: List and describe the four main techniques commonly used in trade-market sales promotions. Choose ... (Read 105 times)

biggirl4568 · **on:** Jun 29, 2018

List and describe the four main techniques commonly used in trade-market sales promotions. Choose one type and demonstrate how it would operate within a certain type of industry, profession, or business.

Question 2

Brownsworth Brothers Coffee is a mail-order business run by two brothers directly from their Hawaiian plantation.
They have targeted heavy users in the past, but they're considering a new focus on college students. They are considering switching target segments even though this group is comprised largely of people who don't drink coffee, or have just started to drink coffee and don't consume anywhere near as much as the heavy users. What are the disadvantages of the heavy-user strategy? What term is used to describe the college students the company is considering targeting? What are the advantages of targeting this new segment?

izzat · **Reply #1 on:** Jun 29, 2018

Answer to Question 1

Incentives - to members of the trade include awards in the form of travel, gifts, or cash bonuses for reaching targeted sales levels. These can induce retailers and wholesalers to give a firm's brand added attention. Push money is a type of incentive involving monetary rewards to salespeople who feature and ultimately sell a particular brand.
Allowances - are seen in several forms as used in a push strategy. Merchandise allowances, in the form of free products packed with regular shipments, act as payments to the trade for setting up and maintaining displays. Shelf space has become so highly demanded, especially in supermarkets, that manufacturers are making direct cash payments, known as slotting fees, to induce food chains to stock an item. Monetary discounts are also seen in the form of bill-back allowances and off-invoice allowances.
Training programs - have become an increasingly popular trade promotion for retail store personnel. The increased complexity of many durable consumer goods has made it important for manufacturers to ensure that the proper pieces of information and the most persuasive themes are reaching consumers at the Point-of-Purchase. Cooperative advertising - occurs when the manufacturer shares the cost of media with the retailer. This extends the reach and frequency for both brands, at less cost than advertising alone.

Answer to Question 2

Heavy users of Brownsworth Brothers Coffee may need no encouragement at all to keep consuming. A heavy-user focus by an advertiser takes attention and resources away from those who do need encouragement to purchase the marketer's brand. Perhaps most importantly, various heavy users may be significantly different in terms of their motivation to consume, their approach to the product, or their image of the product.
The college students who may try Brownsworth Brothers Coffee are considered emergent consumers. Their preferences are still under development. This target audience may produce minimal profits in the short term. However, there is the strong opportunity for gains in the long-term if they begin their initial coffee drinking with this brand, like it, and get hooked on it. They may ultimately demonstrate brand preference, or possibly even brand loyalty, for Brownsworth.