Forms of product or service promotion, Marketing Management

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Forms of Consumer Promotion:

1 free distribution of samples: it involves free distribution of samples to ultimate consumers. The samples may be distributed door to door or may be offered in a retail store or with the purchase of any particular product. These samples may also be given to professionals to recommend. This helps the consumer to verify the real quality of the product. This is suitable for introducing a new product of daily use.

2 coupons: a coupon is a certificate that entitles the consumer to specify saving on the purchase of a specified product. These coupons are usually issued by the manufactures through the retailers or in most of the cases; they are kept inside the package. The consumer may get a discount of the value stated on the coupon at the time of purchase. The retailers are reimbursed the value of coupons by the manufactures.

Premium or bounous offers: an offer of a certain amount of product at no cost of consumers who buy a stated amount of a product or a special pack there of is called premium offer or bonous offer. This method is very popular now -a -days in view of the actual competition. Premium may be kept inside the pack or in the form of reusable container.

Money refund offer: this offer is generally stated in the media advertising that the manufacturer will return the price if the product is not to the satisfaction of the consumer within a stated period. For example, bll -worker exercise is promoted in this way.

Price off or temporary price reduction: this involves an offer to consumers of a certain amount of money of the regular price of teh product. This is done to attract consumers of other brands to his product. This offer is generally made on some specific occasions or festive such as Diwali or Id etc. or when a substitute or competiting product enters the market.

Contents or sweep stacks: at times, contests are arranged with a view to attack new users to the company's product. An opportunity under this device is given to consumer to contest with a chance to win cash prizes, free air trips or goods. It is an indirect manner of the introducing a new product. In such contents, consumers are asked to reply very simple Q in a form available on purchase of the company's product.

Bonus stamps: such bonus stamps are issued to the consumers by the retailers or by the manufacturer in propostion to their purchases. The consumer goes on collecting stamps until he has sufficient quantity to obtain a desired in exchange of teh stamps.

Draw: under this system, every purchase making a purchase of certain specified amount is offered a coupon during a certain period. After the expiry of the period a draw is made and attractive prizes are given to the winners.

Cheap bargin or self liquidating premium: under this method, the consumer is offered another product at a cheaper rate along with the purchase of the company's product. For example, a plastic bucket of 5 L at Rs. 5 only with the purchase of one Kg. Pack of surf.

After sale service: under this method, the producer gives a grarantee to the consumers to maintain the product for certain specified period. It is called warrenty. If, during this method consumer feels any problem, he may get the defect removed at no cost, it developes faith among the consumers about the quality of the product.

There are different types of deals and the most common among them are described below:

1.       Buying allowance discount: the buying allowance or discount is offered to the dealer to induce him to buy the manufacturer offers a certain amount of the money for additional new purchases based on the quantity of purchases made on the first trade deal.

2.       Display and advertising allowance: the allowance is offered to the dealer or to display the manufacturer's product. The allowance is given in the basis of space provided to display the manufacturer's product in the shop.

3.       Buy back allowance: this method of the promotion is practised to prevent a post deal sales decline. Under this method, the manufacturer offers certain of money for additional new purchases based on the quantity to purchases made on the first trade deal.

4.       Dealer -listed promotion: under this method dealer name and the address is given on the advertisement and other publicity material as calenders, diaries etc.

5.       Push money of the PM's: this is an intensive payment is the cash or in kinds to the retailer or salesman to push the sale at a fixed rate for each article sold.

6.       Sales contests: it is a device used to stimulate and motivate distributeers, dealers and their sales staff. They are offered cash prizes for those who will win the sale contest, who will make the highest sales of the comany's product. In view of the winning chance, sellers participate in the contest.

7.       Free gifts: under this method, producer gives free gifts to the dealer on the basis of the quantity of the product purchased by him.

8.       Advertising matrial: the advertising materials such as calenders, New Year diaries, literacture, sign boards, packing bags, posters etc. are supplied by the producer of the product to the dealer or middle man for advertisement.

9.       Credit facility: the producers allow credit to their dealers, based on the quality purchased by them. This enables them to purchase bulk quantity.  


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