Consumer Sales Promotion Techniques

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Marketing management


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Consumer Sales Promotion Techniques:

Consumer Sales Promotion Techniques Objective and examples Pradyuth Dutta


Types Price off Coupons Refunds & Rebates Bonus packs Loyalty Programs Samples Premiums Contests and Sweepstakes


Price-off Price deals are probably the most commonly used promotional techniques. A price deal for a customer means a reduction in the price of the promoted product and the consumer saves money on purchase. Objective- gaining the attention of consumers and may also encourage unplanned or impulse buying. Example: Colgate fresh energy ice blue gel (Colgate India) 50gm pack, Rs . 5.50 off on normal price, now available at Rs . 12.50 only.


Coupons A coupon entitles a buyer to a designated reduction in price for a product or service. They grant specified savings on selected products when presented for redemption at the point of purchase. Coupons bear an expiry date and cannot be redeemed after the cutoff date . Objective- 1.Encourage brand switching 2.Stimulate trial for a product 3.Take off the attention from price Example: Fair and Lovely dark circle removal cream to create more product trials has coupons in the newspapers and magazines which avail you of Rs.10/- off on a 40 gm pack.

Refund and Rebates:

Refund and Rebates Refund is the repayment of total money paid for purchase, while the rebate represents repayment of only part of the money paid for the purchase. Refund offers seems to work very well in guaranteeing the trial of a product or service since there is no risk involved for the customer because of the promise of total refund of the purchase amount. Rebates play an important role in the consumer durable segment because the product price is reduced to a great extent because of the rebate offer . Objective- to increase the quantity or frequency of purchase, to encourage customers to load up

Refund and Rebate:

Refund and Rebate Example: “Taj mahal Tea” guaranteed its taste by openly telling the public of its offer that “ agar chai pasand nahi aaie, toh pure paise vaapas”! After having launched it new product Whisper Ultra-Thin, confident about the product quality and confident about offering the promised product, to increase its trail and usage, had started the money back offer.

Bonus packs:

Bonus packs In case of a bonus pack, an additional quantity of the same product is offered free when the standard pack size of the product is purchased at the regular price. This is a method to “load” the consumer up with the product . Objective- This technique is often used to introduce a new large size of the product or to encourage continued usage and also to increase consumption

Bonus packs:

Bonus packs Example: Godrej Color Gloss triple action shampoo, offers 20% extra free. 100ml +20ml. Sunsilk shampoo (HLL) 400ml bottle gives 33% more free. Dettol shaving cream  get 40% extra free. Another variation of this technique is “buy 1 get 1 free” or some similar offer, it could be “same for less” or “more for the same.”


Samples Sampling is a sales promotion technique designed to provide a consumer with an opportunity to use a brand on a trial basis with little or no risk. Sampling is particularly useful for new products, but should not be reserved for new products alone. It can be used successfully for established brands with weak market share in specific geographic areas . Objective: to attract consumers to try out a new product and thereby create new customers .


Samples Example: in the case of medicine free samples are distributed among physicians, in the case of textbooks, specimen copies are distributed among teachers.

Loyalty Programs:

Loyalty Programs Loyalty Programs offer consumers discounts or free product rewards for repeat purchase or patronage of the same brand or company. Objective: encourage repeat purchases or repeated visits to particular retail shops

Loyalty Programs:

Loyalty Programs Example: stop started the “First Citizens’ Club” and enrolled customers as ‘members’ of the shoppers club by charging a fee of Rs.150. The customers were entitled to a variety of benefits by collecting points . many frequent flyer or user schemes used by airlines, train companies, car hire companies etc.


Premiums A premium is tangible compensation, an incentive, given for rendering a particular deed, usually buying a product. The premium may be free, or, if not, the cost is well below the usual price. Objective: induce consumers to buy a particular product. This is also useful for encouraging and rewarding existing customers.


Premiums Example: A milk shaker along with Nescafe, mug with Bournvita, toothbrush with 500 grams of toothpaste, 30% extra in a pack of one kg detergent.

Contests & Sweepstakes:

Contests & Sweepstakes A contest has consumers compete for prizes based on skill or ability. Contests were very often used earlier where people has to write slogans, poems, stories etc. generally “I like the product because …” and the best ones won prizes. A sweepstake is a promotion in which winners are determined purely by chance . Consumers need only to enter their names in the sweepstakes as a criterion for winning. Some popular types of sweepstakes also use “scratch-off cards ”. Objective- create excitement and generate interest for a brand

Contests & Sweepstakes:

Contests & Sweepstakes Example: ‘ Britannia khao world cup jao ’ campaign has taken the market by a swing. Under the offer you collect points available on Britannia biscuit packets and exchange 100 points for a scratch card, which has various gifts and the 100 world cup tickets. The offer was actually introduced during the last world cup and had shown phenomenal results. Sale increased tremendously; there was an increase in the sales by 25%, claims the company.  So it is being done this year too. This year too, the contest is showing good results.



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