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Sales promotions are expensive to administer and can be fraught with legal complications. Sales promotions yield their most positive results when carefully integrated with the overall advertising plan.
For your individual work, read the short summary below and write a paper that answers the following questions:
Imagine you have been hired by a major American automaker to design a sales promotion campaign to stimulate sales of its newly-developed economy car, known as the Zoom.
Identify which of the sales promotion techniques described in the chapter could be most effective and why.
Outline what potential risks the firm takes in incorporating sales promotions into its broader IBP campaign.
Why are sales promotions considered “risky” as an IBP tool?
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Units sold $100.000 consumer promotions $1,800,000 unit cost $40 personal selling 5 salespeople @ $80,000 each target return on sales 10% dealer promotions $1,200,000 advertising $1,500,000 product development $700,000. Calculate the break-even price..
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