Consumer sales
promotion techniques include a variety of price discounts.
Consumer sales promotions are increasingly important marketing tools. Typically used in conjunction with advertising and personal selling, these techniques add a different dimension to the overall promotion program. Companies use common techniques like coupons, deals, premiums, contests and sweepstakes or loyalty programs to create urgency and/or excitement about buying the brand.
Coupons
Coupons offer a discounted price to consumers, who can now obtain them not only through postal mail or at stores but also on websites and via cell phones. The average expiration date for a coupon is about three months, though some may be redeemable for a much longer period. They are particularly effective at stimulating trial for a new or underperforming product, especially when combined with advertising and other sales promotion tools.
Deals
If a competitor introduces a new product, like a breakfast cereal, one way for current cereal makers to fight back is with a time-limited but significant price cut known as a deal. For example, Tasty Flakes could offer two boxes for the price of one, or half off every family size box, to discourage buyers from making room on their shelves for the new Scrumptious Oats brand. Deals are also used to build trial in potential new markets.
Premiums
A premium is a tool designed to encourage consumers to buy more of a brand than they usually would, or to choose it more often than other options. Typically, the premium is some type of merchandise or small gift, offered free or at a minimal cost with purchase of the promoted product. For example, family restaurants and fast-food retailers commonly include a toy with their child-oriented meals.
Contests and Sweepstakes
Contests and sweepstakes offer consumers the opportunity to win a prize that is often substantial in value. Most contests require entrants to apply some effort or use a special skill, like shooting a video or writing a jingle. Sweepstakes are simply games of chance. While purchase of the promoted brand may or may not be a requirement for participation, the goal is to create attention, interest and excitement.
Loyalty Programs
Familiar to many people because of their heavy usage by airlines and hotels, loyalty programs reward returning customers with some premium that increases in value as their purchases grow bigger or more frequent. For example, supermarkets commonly offer special prices just to frequent patrons of their stores. Credit card companies offer discounts and merchandise to their most active cardholders.
Tags: Consumer sales, loyalty programs, purchase promoted, with advertising