Actions intended to convince individuals to purchase a good or service. A typical business will only offer a consumer promotion like a reduced price, free sample or bonus offer for a short period in order to stimulate demand for and awareness of the product being promoted.
Read more: http://www.businessdictionary.com/definition/consumer-promotion.html#ixzz3XOqFJt7gConsumer Promotion Tools
The major consumer promotion tools include price packs, coupons, and samples cash refunds, premiums, advertising specialties, point-of-purchase, patronage rewards displays and demonstrations, and sweepstakes, contests and games.
1. Samples are offers of a trial amount of a product. Sampling is the most effective but most costly way to introduce a new product. Some samples are free; for others, the company charges a little amount to offset its cost. The sample may be delivered door-to- door, handed out in a store, sent by mail, attach to another product, or featured in an ad. On occasion, samples are combined into sample packs that can be used to promote other services and products.
1. Coupons are certificates that provide buyers a saving when they buy specified products. Most of the consumers love coupons: Coupons may stimulate sales of a mature brand or promote early on trial of a new brand. But, as a result of coupon clutter, redemption rates have been failing in recent years. Therefore, most major consumer goods companies are issuing fewer coupons and focusing them more carefully.
2. Cash refund offers (or rebates) are such as coupons except that the price reduction tale place after the purchase instead of at the retail outlet. The consumer sends a "proof of purchase" to the producer, who then refunds part of the buy price by mail.
3. Price packs (also known as cents-off deals) offer consumers savings off the usual price of a product. The reduced prices are directly marked by the manufacture on the label or package. Price...