Mr. Okon is planning to establish a noodle manufacturing company. He observed that the market for the product is large with many competitors.
(a) List and explain four external marketing environmental factors that would affect his business.
(b) Explain four sales promotional tools he would use to introduce his new products to the market.
a)External Environmental Factors that would Affect Mr. Okon's Business:
(i) Political Factors: These include the procedures, practices and regulations of the government of the country in which the business is operated.
(ii) Economic Factors: These refer to the changes in the economic indicators.
(iii) Social factors: These refer to the population, age distribution and family patterns and their effects on the business operation of Mr.Okon.
(iv) Religious factors: These include the various religions practiced by the people in the region where Mr. Okon's business is located.
(v) Technological environment: This refers to the advancement in the devices, processes and equipment used in facilitating business operations of Mr. Okon.
(vi) Cultural factors: These include the beliefs, customs and lifestyles of the people in the region or country of Mr. Okon's operations.
(vii) Competitive factors: Mr. Okon could choose to establish his noodle company in dense competitive region to fight for market shares or he could move to a less competitive region.
(viii) Demographic factors: Noodle is a product that targets consumers ranging from 1 to 20 years old and their purchasing power is based on their parent's income and willingness to spend. Mr. Okon could adopt this marketing environment and relocate.
(ix) Ecological Factors: The raw materials needed for the production of noodle is wheat flour which is available in the Northern part of Nigeria. Mr. Okon could establish his business in Northern Nigeria or close to his target market. He would also consider the cost of power supply for the operations of his his machineries.
(b) Sales Promotional Tools Required to introduce the New Products to the Market:
(i) Samples: Mr. Okon will offer free mini noodles packs to prospective customers in order to encourage them to try the product.
(ii) Free gifts: Extra noodles would be given to prospective consumers for buying in large quantities (buy 5 and get I free).
(iii) Premiums: Mr. Okon can attach other customized items to the noodles carton for free or at reduced price as an incentive to buy the noodles.
(iv) Contests: This will give the potential customers the opportunity of winning an item.cash or other goods for buying Mr. Okon's noodle
(v) Trade-in allowance: This is an amount offered in return for the retailers who agree to sell the noodles for Mr. Okon.
(vi) Salesmen competition: Mr Okon would set sales quota and than their colleagues.
(vii) Discount: Mr Okon could use trade or cash discounts as incentives for marketing intermediaries to stock more of the noodle.
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