- Instant customer recognition
Nationally known and well-advertised products will often have instant
customer recognition. You could say that the products would sell themselves
because the customer already accepts the products and the standard of quality
or performance they represent.
Describe the instant customer recognition programs of the various
manufacturers of your product lines.
If there is a choice of manufacturers for your product line, which one will you
choose? Why will you choose them?
How will their instant customer recognition programs assist you in your
business?
How will your customers benefit from these programs?- Co-operative advertising programs
Large national companies usually have good co-operative advertising programs
to support dealer costs of local advertising to tie in with the national advertising
programs.
This may sound good to the new business or small existing business, but the
negative side of this is that often consumers see products promoted in this
way as commodities. Such products are highly price sensitive.In addition, the gross margin (GM) realized on the regular selling price is
usually low and is controlled by the manufacturer.
When the manufacturer launches a national promotion, gross profit
margins may be driven even lower in spite of special promotional, pre-sale
offerings from the manufacturer.
Furthermore, the business may feel forced to participate in the promotions
whether they want to or not.
There is no exclusivity with this type of product. There may be dozens, if
not hundreds, of businesses in your market handling the products.Describe the various manufacturers' co-operative advertising programs.
If there is a choice of manufacturers for your product line, which one will
you choose?
Why will you choose them?
How will the co-operative advertising program assist you in your business?
How will your customers benefit from these programs?