CONSUMERS PROMOTION TECHNIQUES

CONSUMERS      PROMOTION                  

                  TECHNIQUES

         Sales promotion directed at the end-user are called consumers sales promotion. These promotion are based on ‘pull-strategy.’ These consumer promotion may be used for durable as well no-durable goods. These sales promotion may prove effective when combined with advertising. Customers buying Hitachi Plasma TVs are offered a “red letter” day out. The “red letter” days accompanying the 32 inch, 37 inch and 42 inch TVs include a choice of activities from sailing and paragliding to power-boarding and stock car racing.

(1) Free Samples: This is generally the most powerful form of promotion for ‘new product’, the immediate aim being to obtain ‘trial’ by users. It means offer of a free product or service delivered door to door, sent in the mail, attached to another product, or featured in an advertising offer. This technique is applied generally for cheaper goods. If the product proves good to the customer then he tries for the product and on satisfaction becomes regular user. When the product is new or is not a market leader in its category, sampling often proves to be a very successful strategy to induce trial. Ponds introduced a skincare cream and offered a smaller, low-priced pack as “sample pack.” Products that cannot be explained fully through advertising and need consumer’s subjective evaluation, may do well by providing free sample.

(2) Price Reductions: This method is used to motivate customers to purchase new products. This scheme is used for short-term generally at the time of festivals. This method can be used to attract new customers as well as retain present customers. Such promotion work very well in gaining the attention of consumers, particularly at the point-of-purchase (POP) among similar brands and may also boost impulse buying. Such discount offer immediate value and hence produce stronger consumer response. These discounts can lead to accelerated purchase because they are for a limited period. Price reduction, coupled with display, arouse attention and its effect on consumer decision making can be significant. But discount offer may lose its advantages if competitors announce a similar offer.

(3) Trading Stamps: Under this method the buyer is provided a stamp with each purchase. Buyer stores these tickets and after collection of a specified number of ticket buyer can get some product against these stamps. Every customer who buys product worth of some specified sum is given one stamp. On saving a specified number of stamps, the customer can redeem for the prizes offered in this programme. This method is used by large retailers and companies. Such stamps are attached with the quantity of purchase.

(4) Coupons: Coupons are certificate which offer price reduction to consumers for specified items. It is a certificate entitling the bearer to a stated saving on the purchase of a specific product. Coupons bear a date of expiry and cannot be redeemed after the cut-off date. When coupons are offered by the manufacturer, all costs associated with advertising and distributing the coupons, and redeeming their face values are borne by the manufacturer. When retailers offer coupons they have to bear all the above mentioned costs themselves. Coupons offered from the manufacturer are redeemable at any retail shop that carrier the promoted product. The retailers serve as the agents’ manufacturer in accepting and redeeming the coupons and send the collected coupons to the concerned manufacturer along with their claims of reimbursement. Coupons generally attract older, better educated, urban, middle income families. Coupons are distributed by manufacturer by using print media, direct mail, product packages or through retailers.

(5) Premiums (Gifts): A premium (gift) is a reward given to the customer for purchasing a product. Premium are offered at low cost or free. A with-pack premium accompanies the product inside or on the package whereas a self-liquidating premium is sold below its normal retail price to consumers who request for it. Getting a printer free with the purchase of a computer or getting a bar of detergent free with purchase of three cakes of toilet soap are examples of premiums. Kellogg’s Chocos packs contains small plastic toys and computer magazines often include a compact disc with each issue. Premium may be direct or indirect. Direct premiums are used to reward the customer immediately at the time of purchase and mail premium require the customers to take some action such as mailing the proof of multiple purchase to the marketer.

(6) Fairs and Exhibitions:  Trade fairs and exhibitions are extensively used sales promotion tools in every market. These are organised at local, national and international levels. Fairs and exhibitions provide the opportunity of introducing and displaying the product and brings company’s product and consumers in direct contact with each other. These fairs are organised at historical or religious places. Many industrial exhibitions are organised with the help of government. 

(7) Money Refund Orders: It is a scheme in which customers are promised to get refund of money on submission of purchase certificate of the product. Videocon Bazooka TV set under a money back scheme is example of it. A refund is repayment of total money paid for purchase. It is an offer by a marketer to give back a certain amount of money after the purchase. The offer may be for a product purchased alone or in combination with other products. Refund offers are used to encourage trial of a new product, purchase of increased quantity or increasing the frequency of purchase. Refund offers seem to work very well in guaranteeing the trial of a product or service. Consumers generally perceive refund offers as reward and due to it brand loyalty increases. Refund offer are fairly common. Refund orders are very much used in product such as exercise equipment, mixes and juicers, hair dryers, ceiling fans, printers and magazines. “Reader’s Digest” regularly uses this offer.

(8) Consumer Service:  This method is also known as consumer education. These services may be pre-sale or after sale service. In pre-sale service labels, literature, home magazines are used by the companies. Blue star provides technical guidance at the time of selling Air Conditioners.

(9) Contests and Sweepstakes: Contest of various kinds constitute another widely and commonly used sales promotion tool. According to the American Association of Advertising Agencies, “A contest is an event that invites the customer to apply skill to solve or complete a special problem. Whereas, a sweepstakes does not all for the application of skill on the part of the consumer. In winners are determined by a drawing from all entry forms. So in sweepstakes, prizes are awarded on the basis of chance.” Generally a combination of contest and sweepstakes is used.

(10) Point-of-Purchase Displays: It is also referred to as point of sales promotion. Shelf space has become important in this age of brands competition. The need to remain on top of the consumer’s mind has become the prime concern of marketers. Displays are used to maximize product exposure, enhance product appearance and stimulate consumer interest.

(11) Free Trials: In this method prospective purchases are invited to try the product without any cost. This technique is very much used by automobile industry. They invite customers for test drive of their new models. Automobile is using this technique effectively. This facilitates the customers in operating the products.

(12) Catalogues: Catalogues give complete information relating to product, their picture, size specification, colors, packing, uses and prices. This helps customers to take decision about products. Catalogues work effectively in case of semi-durable goods. Customers can compare competitive products on the basis of these and can take decision.

(13) Product Demonstration: In this method the product and their operations are demonstrated to the prospective customers. This may help these prospects to satisfy their queries. In India demonstration method of sales promotion is used for low unit price products like beverages and washing powders as well as high unit price product like washing machines and personal computers. Sometimes, demonstration are organised at retail stores. Consumer product companies quite often resort to house-to-house demonstrations. Sometimes the products are also demonstrated at fairs and exhibitions.

(14) Product Warranties: Under this strategy explicit or implicit promise are made by sellers that the product will perform as specified otherwise manufacturer will replace the product in case of manufacturer defect or repair it in case of functional defect during a specified period. These warranties assure customers about functioning of the product.

(15) Speciality Advertising: Speciality advertising refers to a product imprinted with, or otherwise carrying, a logo of promotional message. It is also known as a promotional product. Sales promotion technique that places the advertiser’s name, address, and advertising message on useful articles that are then distributed to target market. Several product designed to increase goodwill and exposure, such as custom printed key chains, calendars, calculators and multi-function tool kits are distributed in the target group.

 (16) Road Shows: Road shows attract the attention of the prospect towards a particular product or service. It has been successfully used by the American Railways to attract foreign tourist for “Palace on Wheels.”

(17) Exchange Offers: As competition intensifies among manufacturer, they consider new promotional schemes to sell their product to those who already own less sophisticated old models. In our country we have the culture of repair instead of replacement. This prevent the customers to replace old goods.

    No one in our country is prepared to throw product such as television, microwave ovens, and washing machines. So exchange offers motivate these types of customers to go for exchanging these old product with new advanced models.