Selecting the Message Source (10 Marks) Word Limit (300 words)

There are a number of other options for the source of the firms promotional messages. Your task is to identify which source would probably be the most appropriate for each particular promotional challenge.

Some Possible Different Message Sources

1. A celebrity
2. An expert (such as a dentist, accountant, scientist)
3. An actor/model (in an entertaining or using a product name)
4. A character (e.g. Ronald McDonald)
5. The firms expertise

Promotional Challenge

1. Your firm wants to increase the sales of their fruit juices. Sales have been flat for a number of years. Your range of juices comes in a wider selection of unusual flavours, as compared to your competitors.
2. Your firm has managed to produce the worlds first truly effective toothpaste chewing gum. As the name suggests, this chewing gum cleans teeth and eliminates the need to use toothpaste.
3. Your firm is trying to increase its share of the of kitchen appliance market (e.g. toasters, kettles, blenders). The plan is to build brand awareness and to highlight the reliability of the firms products.

QUESTIONS

1. For each promotional challenge, identify a suitable message source from the above list.
2. Highlight why the message source you selected would be a suitable and credible approach.

Q.2 Describe the major strategies for pricing initiatives and new products. Explain how companies find a set of prices that maximizes the profits from the total product mix. Discuss how companies adjust their prices to consider different types of customers and situations. Discuss the issues related to initiating and responding to price changes. New product pricing strategies (10 Marks Word Limit (300 words)