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【正文】 appropriate for people at a certain stage of life, referred to as changepoint sampling Inter Sampling ? Distributing samples online through the services of panies that specialize in online sample delivery How would you promote this? 169。 2023 SouthWestern, a part of Cengage Learning. All rights reserved. 16–20 Major Sampling Practices Targeting rather than mass distributing samples Using innovative distribution methods where appropriate Undertaking efforts to measure sampling’s return on investment Prudent Sampling Practices 169。 hence, the total cost is $9 million. Step 2: Calculate the profit per unit by determining the average number of annual uses of the product and multiplying this by the perunit profit. Assume, for example, that on average six units of the sampled product are purchased per year and that the profit per unit is $1. Thus, each user promises the pany a profit potential of $6 when they bee users of the sampled brand. Step 3: Calculate the number of converters needed for the sampling program to break even. (Converters are individuals who after sampling a brand bee users.) Given the cost of the sampling program ($9 million) and the profit potential per user ($6), the number of conversions needed in this case to break even is 1,500,000 (., $9 million divided by $6). This number represents a 10 percent conversion rate just to break even (., 1,500,000 divided by 15,000,000). Step 4: Determine the effectiveness of the sampling. For a sampling to be successful, the conversion rate must exceed the breakeven rate with gains in the 10 to 16 percent range. In this case, this would mean a minimum of 1,650,000 people must bee users after trying the sampled brand (., 1,500,000 times ) to justify the sampling cost and yield a reasonable profit from the sampling investment. 169。 2023 SouthWestern, a part of Cengage Learning. All rights reserved. 16–23 Sampling Challenges and Problems ? Expensive to implement ? Mishandling of mailing by distributors ? Distribution to the wrong market ? In or onpackage samples fail to capture current nonconsumers ? Distribution does not reach sufficient numbers of consumers to justify its expense ? Misuse of samples by customers ? Subject to mail pilferage Couponing A promotional device that rewards consumers for purchasing the couponoffering brand by providing moneyoff savings Also known as VOUCHERS 169。 2023 SouthWestern, a part of Cengage Learning. All rights reserved. 16–26 Coupon Distribution Methods 169。 2023 SouthWestern, a part of Cengage Learning. All rights reserved. 16–28 Couponing (cont’d) ? Is Couponing Profitable? – Most coupons are redeemed by current brand users – Households most likely to redeem coupons are also the most likely to buy the brand in the first place – Companies have to offer coupo
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