Sales & Marketing Management

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Example:


A pet supplies store has brought in stock of electronic flea collars. They sell
for $75.00 each and they are guaranteed to work. None sold after several
months.


The manager has tried a number of things to stimulate sales of the
electronic flea collars.
He tried moving the display of these electronic flea collars to different
areas of the store, improving the signage on the display, even decreasing
the price—nothing has worked.
Lately he has placed the display right at the check out and still has sold
none of the collars.

One day a newly hired clerk at the pet store saw a customer at the checkout
looking at the electronic flea collars. The clerk approached the customer and
the manager overheard the following conversation:


Clerk: Hello, I see you looking at the electronic flea collars. Does your pet
have fleas?


Customer: Yes, my dog has the worst infestation of fleas he has ever had.


Clerk: How long has your dog had the fleas?


Customer: About four months


Clerk: What have you done to try to get rid of the fleas?


Customer: I have tried four or five different products. Some have worked for
a while but the fleas come back again. I think that maybe the dog is
getting re-infested somehow.


Clerk: How much do you think you have spent on these other preparations
over the past four months? In addition, have you had a problem with
your dog carrying fleas into the house?


Customer: Oh, I expect I must have spent at least $100 trying to get rid of
these fleas. The fleas in the house are a real nuisance too. My wife
has complained about the excessive vacuuming, washing sheets, etc.
in order to get the fleas out of the house


Clerk: If I guaranteed that, you were to be able to get rid of the fleas once and
for all, would you pay $75.00 for one of these electronic flea collars.


Customer: Sold. I'll try one. It's worth it if I can solve this irritating problem.

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