Вопрос
QUESTION TWO (a) Elaborate on any five classifications of consumer products. (10 marks) (b) Explain any five common methods used to set the total promotion/?dvertising budget. (10 marks)
Решения
4
(187 Голоса)
Светлана
мастер · Репетитор 5 лет
Ответ
(a) 1. Convenience Products2. Shopping Products3. Specialty Products4. Unsought Products5. Habitual Decision-Making Products(b) 1. Percentage of Sales Method2. Competitive Parity Method3. All-You-Can-Afford Method4. Objective and Task Method5. Rule of Thumb Method
Объяснение
(a) Consumer products are classified into several categories based on their characteristics and the buying behavior of consumers. The five main classifications are:1. **Convenience Products**: These are items that are purchased frequently, immediately, and with minimal effort. Examples include everyday items like toothpaste or snacks.2. **Shopping Products**: These are items for which consumers will take the time to compare quality, price, and style from one seller to another. Examples include clothing, electronics, and furniture.3. **Specialty Products**: These are unique items that consumers make a special effort to search out and buy. Examples include luxury cars, designer clothing, and high-end electronics.4. **Unsought Products**: These are items that consumers do not normally think of buying, either because they do not know about them or because they do not normally consider buying such items. Examples include life insurance or funeral services.5. **Habitual Decision-Making Products**: These are items that consumers buy routinely without much thought, often out of habit. Examples include gasoline or everyday groceries.(b) Setting the total promotion/advertising budget is crucial for any business. Here are five common methods used:1. **Percentage of Sales Method**: This method involves setting the promotion budget at a certain percentage of sales. The percentage can be based on past sales, projected sales, or industry averages.2. **Competitive Parity Method**: This method involves setting the promotion budget based on what competitors are spending. Businesses believe that if competitors are spending a certain amount, they should too.3. **All-You-Can-Afford Method**: This method involves setting the promotion budget at the maximum amount the company can afford. It's often used when a company has excess funds.4. **Objective and Task Method**: This method involves setting the promotion budget based on what it will cost to achieve specific objectives. The company first defines its objectives, then determines the tasks needed to achieve those objectives, and finally calculates the costs of those tasks.5. **Rule of Thumb Method**: This method involves using a simple rule or formula to determine the promotion budget. For example, some companies might allocate a fixed percentage of the product's price to promotion.