MDZ manufactures a range of chocolate bars. It has 300 employees. MDZ purchases its ingredients from suppliers in the local area. Acting in an ethical way with its stakeholder groups is important. MDZ has products at different stages of the product life cycle. The business is also developing a new product. The Marketing Director needs to make decisions about the packaging and the price of the new product. She knows it is important for a business to use a suitable method of sales promotion for a new product. Explain two possible methods of sales promotion a business could use for a new product. Which is likely to be the best method to use? Justify your answer. .......................................................................................................................................

Award up to 2 marks for identification of relevant points. Award up to 2 marks for relevant development of points. Award up to 2 marks for a justified decision as to which is the best method of sales promotion for a business to use for a new product.

Points might include:
- Free samples [k] encourage customers to try the product [an] but there is a cost of providing samples [an]
- Point of sale displays / demonstrations [k] which raises awareness [an]
- Buy One Get One Free (BOGOF) / special offers / discounts [k] which makes the product more affordable [an]
- Loyalty schemes [k] so customers want to buy it more often [an] leading to repeat business [an]
- (Free) gifts [k] customers will tend to buy more products to gain more gifts [an]
- Competitions [k] people will buy more for a chance to win a prize [an]
- After sales service [k]

Other appropriate responses should be credited.
Justification might include:
It can offer free samples [k] to encourage customers to try the product [an]. Another method is Buy One Get One Free (BOGOF) [k] which makes the product more affordable [an]. BOGOF is the best method because it helps generate some revenue whereas with free samples there is no guarantee people will buy anything [eval] so the business may have to find another way to help cover the development costs of a new product [eval].