25 Jul DECIDE IF THE CASE IS DESCRIBING PRODUCT PLACE PRICE OR PROMOTION FOR THE MARKETING MIX VARIABLE AND GIVE AN EXPLANATION WHY?
Renee Carson owner of Carson Furniture is discouraged with her salespeople and is even thinking ab Show more Renee Carson owner of Carson Furniture is discouraged with her salespeople and is even thinking about hiring some new blood. Carson has been running Carson Furniture for 10 years and has slowly built the sales to $3.5 million a year. Her store is located on the outskirts of a growing city of 275000 population. This is basically a factory city and she has deliberately selected blue-collar workers as her target market. She carries some higher-priced furniture lines but emphasizes budget combinations and easy credit terms. Carson is concerned that she may have reached the limit of her sales growthher sales have not been increasing during the last two years even though total furniture sales have been increasing in the city as new people move in. Her local cable TV spots newspaper advertising and some ads on the local newspaper website seem to attract her target market but many of these people come in shop around and leave. Some of them come backbut most do not. She thinks her product selections are very suitable for her target market and is concerned that her salespeople dont close more sales with potential customers. Several times she has discussed this matter with her 10 salespeople. Her staff feels they should treat customers the way they personally want to be treated. They argue that their role is to answer questions and be helpful when askednot to make suggestions or help customers make decisions. They think this would be too hard sell. Carson says their behavior is interpreted as indifference by the customers attracted to the store by her advertising. She has tried to convince her salespeople that customers must be treated on an individual basis and that some customers need more help in looking and deciding than others. Moreover Carson is convinced that some customers would appreciate more help and suggestions than the salespeople themselves might want. To support her views she showed her staff the data from a study of furniture store customers (see Tables 1 and 2) that she found on the Internet website for a furniture trade association. She tried to explain the differences in demographic groups and pointed out that her store was definitely trying to aim at specific people. She argued that they (the salespeople) should cater to the needs and attitudes of their customers and think less about how they would like to be treated themselves. Further Carson announced that she is considering changing the sales compensation plan or hiring new blood if the present employees cant do a better job. Currently the sales reps are paid $26000 per year plus a 5 percent commission on sales. 1. Decide if the case is describing product place price or promotion for the marketing mix variable and give an explanation why? Show less
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