Consumer Promotions | The Nicest Guy of Marketing

Updated: Jun 27, 2021

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What is a promotion?

  • The word promotion originates from the Latin word ‘Promovere’ which means push forward an idea. When it comes to selecting a specific product, promotions or offers put across by companies play a very important role in the decision-making process of a consumer.

  • A successful promotional campaign can nurture relationships with consumers through constant engagement. Consumer promotion is a marketing technique that is used to lure a customer to buy your product, Simple!

  • Brands also use consumer promotion as a tool to boost their sales. Promotions can play with the consumer psyche and are very effective in capturing the market and increasing sales.

What are the objectives of Consumer Promotion?

  1. Introduce new products

  2. Build product awareness

  3. Creating renewed interest in the minds of the consumer

  4. Stimulate user demand

  5. Reinforce the brand

7 benefits of Consumer Promotions on a brand:

  1. Opportunity: A promotion allows the brand to communicate the message to its target customer. and helps a brand form a formidable and long-lasting relationship with its customer base.

  2. Reputation: Word of mouth is a powerful medium of communication. Give your customers a reason to be surprised and they will make sure your reputation thrives.

  3. Differentiation: Consumer promotion techniques can be a fantastic way for a brand to stand out amongst the crowd.

  4. Revenue: More promotions will surely help a brand increase its sales. But No brand will do promotions at a loss unless absolutely necessary.

  5. Focus: A consumer promotion, more often than not, becomes a mega event for the company, which allows it to focus all its channels of marketing.

  6. Information: Promotions are an excellent means to gather huge volumes of useful data from its customers. When customers redeem promotions, brands can often retrieve data such as email addresses and contact details.

Let us now look at the type of Customer promotions:

PART 1. Price Promotions:

Price promotions are really popular in India with most of them coming in the form of an end-of-season sale.

“Up to 51% off” – Cutting down the price through discounts: Brands do this all the time.

There are multiple sub-types within “Price Promotion’ scheme:

i) Extra-Fill packs “20% Extra”, i.e., giving something extra without additional charge.

This is very popular in India, especially in the toothpaste segment where consumers are often motivated through an extra filling without any additional charge.

Kissan 50% Extra Offer
Kissan 50% Extra Offer

ii) Free Offers: Buy two and get one free,

i.e., giving away an extra unit absolutely free. This is a very popular sales promotion method for apparel marketers. Many brands like Peter England and Arrow come up with such attractive offers to lure consumers to buy more.

Another free offer is usually in the form of free samples to motivate/attract people to try a new product. Yakult, a nutritional supplement brand from Japan, distributed free samples when it first came to India, to stimulate its trial.

iii) Reduced Shelf Price

This is the most common form of price promotion. A product is on sale with a shield sticker showing a reduced price offer. This entices a customer to buy the product at a discounted price in more quantities.

iv) Cash Rebates

A customer is invited to collect tokens after buying several packs of a certain product and in return receive a cash voucher.

v) Discounts </