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2 pages/≈550 words
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APA
Subject:
Business & Marketing
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Essay
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English (U.S.)
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Product, Advertising and Brand Essay #2

Essay Instructions:

1. Because of expenses, the new product development stages for convenience goods should be reduced to idea generation, screening, and then, product development and commercialization (national roll-out). The savings (from streamlining the development process) will be used in an exorbitant, initial pull promotion campaign. After that, coupons will be offered every third week. With the pull strategy and couponing, the consumer will view the brand and product category as synonymous. 

Do you agree or disagree with this strategy? Why or why not?

 

2. Buzz can be created in a variety of ways, for example, advertising. Explain how advertising can be used to generate buzz. What are some of the dangers of this method?

 

3. Corben Inc. has a successful brand with the name Crunz. The market size in which Crunz competes is $4 billion, and Crunz has generated sales of $400 million. It has a contribution margin of 30% and annual fixed costs of $20 million. Corben Inc. is thinking of introducing a new brand under the name of Zaturn. Zaturn will compete in the same market as Crunz. The annual fixed costs for this brand are expected to be $40 million.

If it is launched, Zaturn will capture 10% of the market. It has a contribution margin of 40%. Half of the sales of Zaturn will be cannibalized from the sales of Crunz. An alternative strategy for Corben Inc. is to cancel the introduction of Zaturn and instead to spend the $40 million (on an annual basis) to promote Crunz. This action is expected to increase the sales for Crunz by 50%. Both brands (Crunz and Zaturn) sell at the same price.

Where should the company spend the $40 million and why? Show all calculations!

Essay Sample Content Preview:

PRODUCT, ADVERTISING AND BRAND
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PRODUCDT, ADVERTISING AND BRAN

Question One
I agree with the strategy simply because the strategy selected for the advertisement of a new product depends on the type of product, market and the product life cycle stages. A pull strategy tries to make the customers to pull the manufactured goods from the producers through the marketing channels. The business focuses its marketing communication struggles on customers in the hope of encouraging interest and demand for the manufactured goods at the end user level.
The pull strategy mostly comes in handy if distributors are reluctant to transmit a product because it catches as many customers as possible to go to wholesale outlets and request the manufactured goods, thus pulling it through the channel. Customer-promotion purposes are there to entice shoppers to try new manufactured goods, lure buyers away from competitors’ produces, get shoppers to "load up" on a developed good, to hold and to reward loyal shoppers, and build customer connections. Archetypal tactics engaged in pull strategy are sampling, cash refunds and coupons, rebates, sweepstakes, advertising specialties, games, patronage rewards, premiums, contests, and point-of-purchase displays (POP). Combining with coupons with the pull strategy, businesses will expand and increase their market area of operation. This combination will entice shoppers who will travel over long distances just to redeem the valuable coupon CITATION Lee13 \l 1033 (Lee, 2013).
Example of a combination pull-coupon strategy that is car-selling business. Car dealers often offer cashback offers and other dealer incentives when they advertise their cars.
Question Two
Explain how advertising can be used to generate buzz. What are some of the dangers of this method?
Buzz marketing is a viral selling technique that tries to make each bump into wi...
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