trained employees in the area. The limited number of potential employees compared to Honda’s need for trained and educated employees is considered to be the economic problem of _________. Deficit Surplus Resources Scarcity (E14) Below are the 4 types of economic classifications for consumer products and their explanation. Give an example and explain how the 4P’s might be different for that type of product. Classification of Consumer Product Explanation Provide Example Discuss how the 4P’s may be different Convenience Products purchased without much planning because they are purchased frequently. Milk, eggs Packaging may be plain, advertising is minimal, prices are usually stable, and products are sold at a variety of locations Shopping Products purchased less frequently and whereby research is invested into the process. Consumer looks at both price and quality. Shoes, clothing, make up Advertising budgets are high, prices are set at a price that consumers will agree the product is valuable yet good quality; product will come in a variety of colors, styles, etc, and can be bought at a variety of stores. Specialty Products that consumers will go out of their way to purchase because of the unique characteristics or brand loyalty. Focus is on quality. Laptops, cameras, high end make up High amount of money is spent on advertising, prices are generally higher to indicate quality, focus is on brand recognition, products sold at specialty stores Unsought Products that consumers do not know a lot about or they do not think of purchasing until they are needed. Home theater system such as Bose. Products will be fairly new to the market and found exclusively at high end specialty shops, prices are high, and advertising is exclusively targeted to potential customers.
acknowledged sponsor. Public Relations/Publicity Activities performed or organized by a company in order to promote a positive image for a company. Least expensive form of promotion. No control over message Personal Selling Personal communication between a customer and the sales person of a product. Personal Must have the right sales person with the right qualities and traits. Most expensive form of promotion. Sales Promotion Any type of promotion other than selling, advertising, publicity, and visual merchandising that is used in the promotion of goods and/or services Can stimulate sales quickly. Intended to last for a short amount of time. Visual Merchandising Physical elements in the placement of products in a store that promotes a favorable image to a customer. Draws customers to a store May not be effective if it does not tie in to the vision of the company or if it is not coordinated. (F07) Which type of promotion is used by companies to stimulate sales by offering coupons, giveaways and rebates? Advertising Publicity Visual Merchandising Personal Selling Sales Promotion (F07) Which type of promotion would a company choose in order to raise the image of the company and/or its products? Advertising Publicity Visual Merchandising Personal Selling Sales Promotion (F07) Which type of promotion would a company choose in order to reach a mass audience to inform customers about a new product? Advertising Publicity Visual Merchandising Personal Selling Sales Promotion (F07) What type of promotion would a company use in order to provide one-on-one contact with the customer to inform them about potential products? Advertising Publicity Visual Merchandising Personal Selling Sales Promotion