D)Assume that you have $100,000 extra to spend on promotion of consumer product. On what basis would you decide whatever to spend it on advertising, sales people, or sales promotion items such as T-shirts.
To determine how to spend the extra $100,000 on promotion of a consumer product, you would need to consider several factors and make a decision based on a strategic approach. Here are some steps to consider:
1. Understand your target audience: Identify your target market and learn about their preferences, behaviors, and buying patterns. This will help you better understand which promotional strategies might resonate most effectively with them.
2. Set clear objectives: Determine what you aim to achieve with the additional promotion budget. Is it to drive brand awareness, increase sales volume, penetrate new markets, or encourage repeat purchases? Having specific objectives will guide your decision-making process.
3. Assess the effectiveness of each promotional method: Consider the potential impact and reach of different promotional channels such as advertising, salespeople, and sales promotion items. Review their track records, previous ROI, and how well they align with your target audience and objectives.
4. Consider the scalability and longevity: Evaluate how scalable and sustainable each promotional method is. For example, advertising campaigns can reach a broad audience but may have limited duration, while salespeople can deliver personalized interactions but are more costly to maintain long-term.
5. Analyze cost-effectiveness: Compare the costs associated with each promotional method and estimate the potential return on investment (ROI) for each. Consider factors such as cost per reach, cost per sale, and potential customer lifetime value.
6. Test and measure: If possible, consider running small-scale tests or pilot programs to gauge the effectiveness of each promotional method. Use data analytics and customer feedback to measure the impact and make informed adjustments to your strategy.
7. Monitor competition: Keep an eye on your competitors' promotional activities to ensure you remain competitive. Analyze their strategies and identify any gaps or opportunities you can capitalize on.
8. Seek expert advice if needed: If you are unsure about the best approach, consider consulting experts in marketing, advertising, or sales to gain valuable insights and advice tailored to your specific industry and target audience.
By considering these steps and thoroughly evaluating each promotional method, you can make an informed decision about how to spend the $100,000 to maximize its impact on promoting your consumer product.