Explain The Tools of Consumer Promotion


Consumer Promotion


Consumer Promotion:

  • Price off offers: offering product at lower than the normal price.
  • Quantity off offers: offering more quantity of the same product at no extra cost or with a very nominal increase in the price of the large quantity packs.
  • Premium: offers an article of merchandise as an incentive in order to sell product or service. The forms of premiums are:
  1. Packaged premium: when the incentive article is packed inside the packing of the product.
  2. Banded premium: where the incentive article is banded to the package of the product like cello tape etc.
  3. Over the counter (OTC) premium: when the premium article is neither inserted inside nor banded to the product package but is given away to the consumer over the counter along with the product package.
  4. Container premium: when the product itself is placed in an attractive & reusable container which services as a gift.
  5. Self- liquidating premiums: where the consumer usually is asked to pay a specified amount to liquidate or offset a part of full cost of the premium article or the scheme administration costs.
  6. Personality premium: where the consumer is required to redeem a specified proof-of-purchase for the premium article. Proof-of-purchase may be labels, pack tops, bottle tops, corks etc.


  • Coupons:

When the consumer is entitled to redeem a specific standard certificate for a product/ article free or in part payment. Coupons are used by both the manufacture & the dealers for sales promotion coupons may be distributed by mail, by media advertisements, door to day inside product package or by dealers on purchase.


  • Refund offers:

Offer of a refund of money to consumer for mailing in a proof-of-purchase of a particular product(s).


  • Trading stamps:

Organize by trading stamp companies or large retailers. Trading stamps are a kind of discount coupons offered to consumer linked with the quantum of their purchase. On enough accumulation these are redeemable for various kinds of merchandise.


  • Consumer contests & Lucky draws:

Where individual are invited to compete on the basis of creative skills. The latter is based on the chance or luck factor.


  • Specialties:

Specially advertising presents the brand’s name on something that is given away as a reminder. Like: calendars, pens, pencils, T-shirts etc.



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