Question

Your large retail store sells power tools and construction supplies, and your customer base is made up primarily of home improvement contractors, subcontractors, and serious DIYers. But business has stagnated now that the housing market has seen a downturn. What can you do to boost your sales and keep your business solvent?

a. Offer reduced prices to your customer base to build loyalty in that market segment.
b. Increase your advertising to home improvement contractors.
c. Consider marketing to a segment that meets the criteria for effective segmentation.
d. Concentrate on selling either a consumer product or a business product, not both.
e. Concentrate on selling high-profit items that are already in your inventory.

Answer 1

To boost sales and keep your business solvent during a downturn in the housing market, consider offering reduced prices, targeting a new market segment, and focusing on high-profit items.

Step-by-step explanation:

To boost sales and keep your business solvent, you can take several steps:

1. Offer reduced prices to your customer base to build loyalty in that market segment. This can incentivize them to continue purchasing from your store.
2. Consider marketing to a segment that meets the criteria for effective segmentation. This could involve identifying a new target market or niche that may be less affected by the downturn in the housing market.
3. Concentrate on selling high-profit items that are already in your inventory. By focusing on items that have higher profit margins, you can maximize your revenue and offset any losses from the decline in overall sales.