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Illustrate, using the above text, how applying the Price and Promotion elements of the marketing mix can contribute to achieving Ruth’s ambitions - Leaving Cert Business - Question C - 2006
Question C
Illustrate, using the above text, how applying the Price and Promotion elements of the marketing mix can contribute to achieving Ruth’s ambitions. (30 marks)
Worked Solution & Example Answer:Illustrate, using the above text, how applying the Price and Promotion elements of the marketing mix can contribute to achieving Ruth’s ambitions - Leaving Cert Business - Question C - 2006
Step 1
Price
Answer
To effectively contribute to Ruth's ambitions, applying the pricing strategy is essential. Consider the following:
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Market Share and Price: Ruth needs to set competitive prices that attract more customers, especially in the expanding housing market. A strategic pricing approach, such as penetration pricing, could draw in customers looking for affordable options in home décor.
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Turnover: By adjusting prices strategically, Ruth can increase turnover, allowing her to reinvest in the business and expand product offerings.
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Purchasing: Implementing cost-plus pricing will ensure that all costs are covered while keeping prices appealing to the market, enhancing purchasing decisions for customers.
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Competition Close By: Understanding local competition's pricing will help Ruth position her products effectively in the market.
Step 2
Promotion
Answer
Ruth can implement various promotional strategies to heighten awareness and interest in her products:
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Informing Potential Customers: Promotions should effectively inform existing and potential customers about the range of products available in her DIY department. Using methods like advertisements and public relations can significantly heighten visibility and attract foot traffic.
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‘Do It Yourself’ Department: Capitalizing on the DIY trend, tailored promotions that highlight the DIY department can draw in customers looking for creativity in their home projects.
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Penetrate the Market: Through tactical promotions such as discount offers or loyalty programs, Ruth can encourage trial purchases, ultimately leading to a deeper market penetration.
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New Shop Awareness: If Ruth opens a new shop, targeted marketing efforts should be made to engage the community and create buzz around the new offerings, increasing initial patronage.