(a) State five reasons companies conduct marketing research. (b) Explain the following sales promotional tools: (i) price-off; (ii) salesman competition; (iii) free gifts; (iv) premium offer (v) samples.
Explanation
(a) Reasons for Marketing Research (i) To provide possible solution to marketing problems. (ii) To determine why consumers prefer a certain brand. (iii) To get first-hand information on the needs of consumers. (iv) To study how consumers respond to a new product. (v) To make sales forecasting easy. (vi) To determine the appropriate price of a product. (vii) To help allocate salesmen to territories. (viii) To enhance the organizations competitiveness. (ix) To determine the effect of promotional activities. (x) To determine how often Consumers buy a particular product. (xi) To identify competing products in the market. (xil) To identify business opportunities.
(b) Sales Promotional Tools (i) Price-off - This is a form of price reduction by firms to encourage patronage from prospective buyer. (ii) Salesmen competition - These are incentives offered to salesmen who perform better than their fellow salesmen (iii) Free gifts -These are free products given to customers for purchasing certain items. (iv) Premium offer - These are products offered either free or at a lower price as an incentive to customers to buy more of a particular product. (v) Samples - These are products given to customers for free to encourage them to buy the product