The consumer-oriented promotion tools are aimed at increasing the sales to existing consumers, and to attract new customers to the firms. It is also called pull strategy. The consumer can take the benefit of promotion tools either from the manufactures or from the dealer, or from both.
In general, some of the commonly used consumer-oriented promotion tools are as follows:
- Free samples:
In this case, small units of free samples are delivered door to door, sent through direct mail, attached to another product, or given along with the purchase of some other product (e.g., soaps, soft drinks, detergents or other items). Free samples are normally provided during the introductory stage of the product.
This involves offering price reduction or saving to customers on the purchase of a specific product. The coupons may be mailed or enclosed along with other products, or inserted in a magazine or newspaper advertisement.
- Exchange scheme:
In this case, the customer exchanges the old product for a new one. The old product’s exchange value is deducted from the price of the new product. This sales promotion tool is used by several companies for consumer durables. For instance. Philips came up with five-in-one offer. The offer consisted of Philips TV, two-in-one, iron, mixer-grinder, and rice cooker at an attractive price.
It refers to reduction in price on a particular item during a particular period. It is common during festival season or during off-season period. It is very stimulating short-term sales, especially when the discount provided is genuine one. For instance, the Hawkins pressure cooker manufacturer announced an attractive price reduction, up to Rs.100/- off, on a new Hawkins in exchange for any old pressure cooker. The advertisement specified that the offer was open only up to a particular date.
- Premium offers:
These can be extra quantities of the same product at the regular price. Premium offers are used by several firms selling FMCG goods such as detergents, soaps and food items. For instance, Colgate offered 125 g in a tube for the price of 100 g.
- Personality promotions:
This type of promotion is used to attract the greater number of customers in a store and to promote sale of a particular item. For instance, a famous sports personality may be hired to provide autographs to customers visiting a sports shop.
- Installment sales:
In this case, consumers initially pay smaller amount of the price and the balance amount in monthly installments over a period of time. Many consumer durables such as refrigerators and cars are sold on installment basis.