Recommended Method: Create a 'limited-time offer' with a promotional bundle.

Justification:

• Creates Urgency: A limited-time offer encourages customers to act quickly for fear of missing out. This is particularly effective for new products.
• Generates Excitement: The novelty of a limited-edition item and the urgency of the offer can generate buzz and excitement among customers.
• Encourages Trial: The offer can incentivize customers who might not normally try new items to take a chance.
• Bundling Value: Combining the new burger with popular sides or drinks in a bundle adds perceived value and increases the overall purchase amount.
• Marketing Potential: The limited-time offer provides a clear and concise message for marketing campaigns across various channels (social media, advertising, in-store promotions).

Other options considered (and why they are less suitable):

• Loyalty cards: Less effective for driving initial trial of a new product.
• Coupons: Can be useful, but a limited-time offer with a bundle is likely to be more impactful.
• Competitions: May not directly drive sales of the new burger; focus is better on encouraging trial.

Here's an evaluation of the effectiveness of online versus traditional advertising for a business selling high-value products:

Online Advertising:

• Cost: Generally less expensive than traditional advertising. Businesses can set budgets and track spending closely.
• Reach: Can reach a global audience, but targeting options allow for reaching specific demographics and interests.
• Measurability: Highly measurable. Businesses can track website traffic, conversions, and return on investment (ROI) using analytics tools. This allows for data-driven optimization of campaigns.
• Targeting: Sophisticated targeting options based on demographics, interests, online behavior, and purchase history. This increases the likelihood of reaching potential customers who are likely to be interested in the product.
• Examples: Search Engine Marketing (SEM) - Google Ads, Social Media Advertising (Facebook, LinkedIn), Display Advertising.

Traditional Advertising:

• Cost: Generally more expensive than online advertising. Television and radio advertising can be particularly costly.
• Reach: Can reach a large audience, but targeting is less precise. Television and radio advertising reach a broad demographic.
• Measurability: Difficult to measure the effectiveness of traditional advertising. While some metrics (e.g., viewership ratings, radio listenership) are available, it's difficult to directly attribute sales to advertising campaigns.
• Impact: Can create strong brand awareness and build credibility. Television and radio advertising can be highly persuasive.
• Examples: Television advertising, Radio advertising, Print advertising (newspapers, magazines), Outdoor advertising (billboards).

Comparison and Conclusion:

For a business selling high-value products, online advertising is often more effective than traditional advertising. The ability to target specific demographics and track results allows for a more efficient use of marketing budget. While traditional advertising can build brand awareness, it's difficult to measure its impact on sales. The higher price point of high-value products justifies the investment in more targeted and measurable online advertising strategies. A blended approach, combining both online and traditional advertising, may be the most effective strategy, but online should typically be the primary focus.

How a Competition Can Be an Effective Method of Sales Promotion:

Competitions are effective because they generate excitement and encourage customer engagement. The chance to win a prize motivates customers to purchase the promoted product, increasing sales volume. They also create positive brand associations and can generate word-of-mouth marketing.

Examples of Competition Structures to Maximize Effectiveness:

• Entry-Based Competition: Customers receive a token or code with the purchase of the product and enter online or via a dedicated phone line. This ensures a direct link between purchase and entry.
• Scratch Card Competition: The product packaging includes a scratch card with instant win prizes, encouraging immediate engagement.
• ‘Collect and Enter’ Competition: Customers collect codes from multiple purchases of the product and enter for a chance to win a larger prize. This encourages repeat purchases.
• Social Media Integration: Customers can enter the competition by sharing a photo of themselves using the product on social media, increasing brand visibility.

Maximizing Effectiveness:

• Attractive Prize: The prize should be desirable to the target market.
• Clear Entry Rules: The rules should be easy to understand and follow.
• Promote the Competition Widely: Use various channels (e.g., in-store displays, advertising, social media) to promote the competition.
• Time Limit: A defined time limit creates a sense of urgency.