Consumer promotions

Consumer sales promotions are steered toward the ultimate product users – typically individual shoppers in the local market – but the same techniques can be used to promote products sold by one business to another, such as computer systems, cleaning supplies, and machinery. In contrast, trade sales promotions target resellers – wholesalers and retailers – who carry the marketer’s product.

Following are some of the key techniques used in consumer-oriented sales promotions.

Price deals A consumer price deal saves the buyer money when a product is purchased. The main types of price deals include discounts, bonus pack deals, refunds or rebates, and coupons. Price deals are usually intended to encourage trial use of a new product or line extension, to recruit new buyers for a mature product, or to convince existing customers to increase their purchases, accelerate their use, or purchase multiple units. Price deals work most effectively when price is the consumer’s foremost criterion or when brand loyalty is low.

Special events According to the consulting firm International Events Group (IEG), businesses spend over $2 billion annually to link their products with everything from jazz festivals to golf tournaments to stock car races. In fact, large companies like RJR Nabisco and Anheuser-Busch have special divisions that handle nothing but special events. Special events marketing offers a number of advantages. First, events tend to attract a homogeneous audience that is very appreciative of the sponsors. Therefore, if a product fits well with the event and its audience, the impact of the sales promotion will be high. Second, event sponsorship often builds support among employees – who may receive acknowledgment for their participation – and within the trade. Finally, compared to producing a series of ads, event management is relatively simple.

Premiums A premium is tangible compensation that is given as incentive for performing a particular act – usually buying a product. The premium may be given for free, or may be offered to consumers for a significantly reduced price.

Continuity programmes Continuity programmes retain brand users over a long time period by offering ongoing motivation or incentives. Continuity programmes demand that consumers keep buying the product in order to get the premium in the future. By rewarding long-standing customers for their loyalty, continuity programmes also reduce the threat of new competitors entering a market.

Sampling A sign of a successful marketer is getting the product into the hands of the consumer. Sometimes, particularly when a product is new or is not a market leader, an effective strategy is giving a sample product to the consumer, either free or for a small fee. But in order for sampling to change people’s future purchase decisions, the product must have benefits or features that will be obvious during the trial.