That’s how marketers earn your money

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By: Chengqi Yang

Consumer-market sales promotion is a marketing technique that is used to stimulate customers to purchase a product. These promotions are trying to enhance the value of a product through reducing the overall cost of the product or by adding extra benefit to the regular purchase price. Currently, there are five major sales promotion often used by marketers.

Coupons

Coupons are the most traditional used form of sales promotion. Thousands of consumers are use coupons or e-coupons shopping every day in everywhere. A coupon is a ticket or document that can be treating as money when purchasing a product. Most coupons can be found in the newspapers, magazines or online. Coupons can effectively stimulate customers to keep shopping, in order to increase sales and let customers feel satisfaction. In addition, coupons also can increase the number of new customers.

Contests

There is no doubt that contest is the most exciting game for consumers because they have a certain chance to win prizes like cash, voucher or store merchandise. To be effective, the price should visible which means customer can easily see what the price is. Next, consumers taking part in the contest are asked to answer some very simple questions about the company. However, contests also encounter several challenges. First, contests are subject to government regulations and have to obey the laws. Moreover, consumers are more focus on the contests rather than the company.

free-trial-green

Free Trail  

A free trail is a way for markers to induce customers to try a new product or services, in order to reducing the risk. As usual, free trials are always used to promote a new kind of cheese or dressing to customers in the market or offering new type of cars for customers to try. Marketers are intending to convey values and induce people to buy it. Free trial is also common used in televisions that buyer can return the product within a certain time of period for free.

Premiums

Premiums are prizes, gifts, or other special offers received when a consumer purchases a product. There are two types of premiums. One is free premium which means give to consumers for free. The most frequently used free premiums are get an extra item after you buy the original item. Marketers always use free premiums to target households to induce them to buy general merchandises. The second type is self-liquidating premium which means consumer only need pay partial of the price but can get full item. Many brands are using self-liquidating premium to reward their loyal customer. For example, customer can only pay 80% of the piece to get a new T-shirt when in his or her birthday. However, self-liquidating premium was not often used by marketers because this strategy was not very effective. 

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Photo Source:

http://www.buzzle.com/articles/marketing-promotion-methods.html

http://www.leadformix.com/blog/2010/07/is-offering-free-trial-%E2%80%98green%E2%80%99-2/

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One thought on “That’s how marketers earn your money

  1. That was a great look into how consumer sales promotions can be utilized by companies to make money. One aspect I would have liked to see information regarding because it is a new form of sales promotions is groupons and how marketers utilize those. Whether they are used in a similar way or does the fact that they offer such greater savings for a larger group do they change the frequency or ways that they are offered? Overall this was a great post and an interesting look into different types of sales promotions.
    – Michael Barclay

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