Recommended
More Related Content
What's hot
What's hot (20)
Viewers also liked
Viewers also liked (11)
HollyGauldin_Unit 7_Assignment 1_MT450
- 3. Willingness to purchase Encourage Repurchasing
- 6. Recognition test • Interview respondents • Obtain information/ ad recall • Scores created • Evaluate campaign
- 7. How customers can buy the Tile • Website/ Online purchase • Retail stores • Build walk in location
Editor's Notes
- Welcome! My name is Holly Gauldin and today I will be presenting the promotional and distribution strategy for the third generation Tile.
- Here is the advertisement that I will be referencing throughout this presentation. We have stated that customers purchasing a Tile: Gen 3 before January 31, 2016 will receive 25% off of their next Tile purchase. This can be achieved by entering the promo code inside of the Tile packaging.
- Why this promotion? Discounts create a willingness of new customers to take a risk and try the new product. Customers are more likely to purchase items with price benefits because there becomes less of a “risk” involved; less opportunity loss and less monetary loss if they do not like the product. By making the discount apply only to the next purchase we are setting up a repeat purchase system. This promotion is an additional benefit to existing customers since they will be purchasing the Tile anyway they will too receive the discount; creating a win-win.
- Where should this advertisement be placed? The ideal magazine to place this advertisement would be in Travel Magazine. This reaches a large portion of the target market of young adults in their twenties to adults in retirement. Also, all of those who are consistent travelers are a major portion of the target market as well. The second option would be the IT Magazine. This is because out product is an up and rising new technology form. Becoming recognized in the IT industry could give us a completive edge.
- What’s the damage to achieve this goal? The cost of this promotion (after fees, wages, etc.) will be the discount percentage of 25% that we would have made without the promotion. We hope this cost will be outweighed by the number of new customers we will acquire. Another important, high cost would be the payment made to place the advertisement in the magazine. This magazine may be more costly than some, however, it is reaching our target market at its best.
- How will we know if the advertisement works? We will be tracking and measuring the response rates! The ideal plan is to conduct Recognition Tests This is the most widely used method for post testing print ads and is closely associated with Starch INRA Hooper’s through-the-book method. With this approach, a researcher interviews respondents at home or at work by first asking whether they have read a particular issue of a magazine. If so, she or he then goes through the issue to obtain information about whether the respondents have seen the ad, how much of it they have read, and how much they recall. The Starch method and the resulting Starch scores are used to track and evaluate complete campaigns. (Dhar, 2013, p.298). Dhar, R. R. (2013). Marketing Management, VitalSource for Kaplan University, 4th Edition. [VitalSource Bookshelf Online]. Retrieved from https://kaplan.vitalsource.com/#/books/9781269309646/
- Finally, after successfully sending out the ads and assessing the costs, customers want to buy the new Tile! How will customers purchase our product? Currently, customers are only able to purchase our products online through our personal website. Although we have been successful thus far we should think about expanding our options. As of now, the Tile company can be looking into making arrangements with popular retail stores; such as Best Buy or Airport store locations. Since we are unable to open a store of our own, having someone else sell it for us for a price could be beneficial. In the long run, our company can open our own walk in store location and hopefully grow to no longer need the retail middle-man.