The decisions you make next are really going to help improve our sales.

You're going to do the following:

Evaluate and adjust pricing $($if needed$)$

Select a promotion

Allocate your ad budget

Evaluate and Adjust Pricing

Before we start heavily promoting this bag, it's critical you have it priced right.

If you've priced your product too high, you won't sell as many bags. If you've priced it too low, you might sell a lot of bags but your profit will ultimately fall short.

You want to select a price that is attractive to the buyer and also provides Buhi with a reasonable profit.

Review your pricing one more time and decide what changes, if any, need to be made.

Create a Promotion Plan

The team has worked up a series of promotion options for you to choose from. You will choose one promotion from each of the three categories. Don't just pick the promotions that look the most appealing to you$$base it off your research. Go back to the survey you conducted and look at the reports you purchased. Do you have any information on promotions? If not, you'll want to review the different types of promotions and the promotional mix for ideas.

Allocate Your Ad Budget

I$\text{'}$m giving you a $$20,000$ ad budget for this quarter. The team has already created a variety of ad campaigns based on the various channels being used. Using the research you gathered earlier, you'll want to select the ad channels that are most likely to reach your target audience and allocate your funds to maximize sales.

Measuring Your Performance

Like last quarter, your performance this quarter will be based on how the revenue you generate compares to the revenue goal for the quarter. The revenue goal we$$ve set for this second quarter is $$124,000.$ A bit higher than last quarter, but totally reachable.

Your prior research plays a big role in your decisions this week. Consider this: What do you know about your target audience in terms of preferred promotions, social media, and advertising trends and habits?

I look forward to seeing what you can do this week!

Thanks,

Ben Templeton I was in a meeting earlier and they were talking about psychographic segmentation and how difficult it can be$.$ I was lost. What is psychographic segmentation?

Psychographic segmentation involves segmenting a market based on their activities, values, interests, and opinions.

Psychographic segmentation involves segmenting a market based on how their age, gender, and race combine to influence their activities, values, interests, and opinions.

Psychographic segmentation involves segmenting a market based on how their location and ethnicity combine to influence their activities, values, interests, and opinions. choose the best possible option.