Market Coverage Decisions

1204 WordsOct 18, 20085 Pages
1. Question 1 Introduction Marketing distribution channels play a big role in the marketing process, the marketing team will have to decide to what extent they want to distribute the product and in what market segment they wan to place it. Packaging has the duel function of protecting the product and also of advertising the product, thus it is of great importance to use the right type of packaging. a. Market coverage decision • Intensive coverage; is where the manufacturer of a particular product requires that the product receives maximum market exposure in the specific geographic domain. (Strydom & Jooste, 2007:418) Thus the manufacturer will try exposing it to as many as possible outlets to optimize sales. The products…show more content…
3. Money based promotions: This type of promotion encourages repeated purchases, this technique is often used to promote brand switching. • Advantages; This type of promotion ensures brand presence and is also a reminder for future purchases. • Disadvantages; This type of promotion should not be done to often. Tie- in promotion: Are promotion where two or more products ,(which are not in direct competition) from different organizations do a joint promotion • Advantages; It may be a less expensive type of promotion, there is more shared recourses. • Disadvantages; There is a longer lead time to coordinate because of communication between different organizations. Price cuts: A technique to convince consumers to buy larger amounts of a certain product than they usually would. This can lead to a repeat purchase pattern. • Advantages; The benefits of price cuts are immediate and this may lead to a sales increase by the consumer. • Disadvantages; There is no brand devotion built by this technique, the reason for that is because it mainly attracts brand switchers. This technique can damage
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