(a) State five reasons companies conduct marketing research. (b) Explain the following sales promotional tools: (i) price-off; (ii) salesman competition; (i...

(a) Five reasons companies conduct marketing research

1. To identify and understand customer needs and wants.
2. To measure market demand and estimate the size of the market.
3. To study competitors and understand the competitive environment.
4. To reduce risk and provide reliable information for decision-making.
5. To discover new market opportunities and test new product ideas.

Other acceptable reasons: to determine appropriate prices and to evaluate the effectiveness of promotion.

(b) Explanation of the following sales promotional tools

1. Price-off: A temporary reduction in the normal price of a product, offering the customer a stated amount or percentage off to encourage immediate purchase.
2. Salesman competition: A contest organised among sales staff, rewarding those who achieve the highest sales with prizes or bonuses to motivate greater selling effort.
3. Free gifts: Items given free to customers who buy a product, used to attract buyers and encourage purchase.
4. Premium offer: A product or item offered at a low cost or free as an incentive to buy another product (for example, a bucket given with the purchase of a carton of detergent).
5. Samples: Small free quantities of a product given to customers so they can try it before deciding to buy the full-size product.