Question

Explain the rationale in the following marketing strategy found in an ad by PH Printer Co. published in the “Boston Times: “Turn in your old printer to us. We will give you a $60.00 coupon towards a new HP printer.”

Answer 1

This is the marketing strategy of increasing market share.

P company wants to increase their market share by a discount of $60 each. Since old printers of any company are exchanged through a new P’s printer, the number of consumers who are going to use P’s printer would increase and in this way the market share would increase. Once the product is used in increasing number, it creates brand value, future demand, and total revenue. In the process of doing so the company is offering $60 coupon on exchange and purchase initially.