Customer Promotions Essay Sample

Customer Promotions

Nowadays, there are lots of techniques to stimulate customers to purchase goods. The most widely used methods of the customer promotions are coupons, premiums, samplings and cash refunds or rebates. Also, majority companies implement such tools of marketing communications as free trials, cents-off and sweepstakes, games or contests.

Coupons are certificates that enable customers to buy products of the corporation at discounted prices. In order to receive benefits during the good’s purchasing, the buyer should provide one of them at retail outlets of the company. Marketing specialists of the perfume company apply coupons to encourage customers to buy a new perfume, increase the frequency of shopping already existing perfume, which demand began to fall. Apart from the print media and the Internet, the buyer can receive them at the cashier in the store. Therefore, the presence of coupons directly in retail outlets of the company increases the probability of customers to make purchases. Moreover, a person may transfer them to the family members, friends and acquaintances. In this way, a given strategy is the most efficient, especially during the holidays (Entrepreneur Media Int., 2010).

Premiums are merchandise offered to customers as a supplement to their main buying to stimulate next purchases. Corporations provide buyers with these commodities free of charge or at reduced prices. The recompense may be both inside and outside of the product packaging that can also be as remuneration. Concerning perfume, marketing specialists of the company usually attach premiums to its bottle in the form of key chains. Premiums are not as effective as coupons. Although the availability of premium that meets certain events or holidays may affect the decision of the buyer to purchase perfume (Ogden, & Ogden, 2014).

Sampling is the following efficient way to stimulate sales of goods. The free provision of samples consists in providing customers with the possibility to use commodity for free. In order to make this technique successful, marketing specialists of the company distribute the merchandise in packaging that is less in size than standard. Marketing specialist of the perfume company may apply this method in combination with coupons. If clients like the perfume, they can get a coupon that entitles a certain discount. Another tactic of customer promotions is the issuance of refunds in cash or coupons forms. In order to receive a refund, buyers must provide the proof of the purchase at retail outlets of the company. During the implementation of this technique in the perfume industry, the proof of the purchase can be a receipt or a bottle of a perfume (Gupta, & Zeithaml, 2006).

The significant way of customer promotions are free trials. Within this technique, the marketers of the company provide buyers with an opportunity to try the product before making a purchase. Marketing specialist of the perfume company may apply this method at the point of the perfume sale. Thereby, clients are proposed to test the perfume in the hope that this commodity will be their regular purchase.

Most companies implement cents-off as a means to stimulate customers to make purchases. The marketers of the perfume corporation apply cents-off technique with other promotions. In this way, the purchasers may buy both male and female perfume with the discount. Within this kind of a customer promotion, clients have a chance to buy a product with a discount that is fixed to the perfume’s packaging in the form of the coupon (Gupta, & Lehmann, 2003).

Last but not the least important ways for a company to encourage customers to increase the frequency of shopping are conducting sweepstakes, games or contests. Concerning sales promotion of perfume, the company may conduct a lottery. During the participation in the sweepstakes, buyers can receive the prize in the form of discount for next purchase of perfumes. In order to become the member of the contest, the customer must provide the proof of the purchase in the form of the label of the perfume packaging at retail outlets of the company. Contests and games may consist of solving puzzles and answering specific questions (Gupta, Lehmann, & Stuart, 2004).

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