Implementing a Marketing Solution Choosing a Promotion Strategy

1. Mail – The major advantage of the mail interview is that the respondent can respond to the questionnaire at his convenience. The major disadvantage is the low response rate. Only 20-40% of the respondents reply to mail interviews.
2. Telephone – The cost of conducting the interview is the major advantage in this type of research methods. The problem in these types of research is the response level is low even here. This is because only one call per six calls is picked up.
3. Face-to-Face – The advantage of this kind of research method is that it is possible to know whether the responses are fake or really true. The drawback is there may be bias on the part of researchers as well as respondents.
Answer: Break-even analysis is a graphical and algebraic representation of the relationships among the volume of output, costs, and revenues. The two types of costs are the variable and fixed costs. The sum of the fixed and variable costs at a specific volume of output becomes the total cost at that volume of output. Both the costs are compared with the sales revenue and the level of sales volume is determined. Also, the analysis reveals the level of production or the value of sales where the business would make neither a profit nor a loss. Such a point at which there would be no profit or no loss is termed as the Break-even Point.
Briefly explain why a business might develop a pricing strategy that increases the sale price of its product when faced with the fierce competition?
Answer: This kind of strategy is believed to be a very smart strategy followed by marketers or business owners. The reason for any business to follow such a strategy of pricing is to prove that their products are the premium products which are best in their quality.