Consumer Promotion
Retailer In-Ad Coupon
This type of coupon is an excellent alternative to temporary price reductions for increasing top-line sales and stretching the marketing budget.
Bounce Back Coupons
This type of coupon is good on the next purchase (so they are good for frequency of purchase)
In-store Coupons
This type of coupon is instantly redeemable and is found in the store either on products, in instant coupon machines in the store aisles, and on the back of register tape, often good on competitive products.
Time Release Coupons
This type of coupon is most used by restaurants and for movie calendars.
Cross-Product Promotions
This type of promotion directs consumers to similarly targeted, non-competing brands.
Rebates
This type of promotion doesn't rely on retailers, and is good for manufacturers, as they can collect the information on their buyers, but a hassle for consumers to get the cash back.
Rebates
This type of promotion is a direct price cut for customers through either codes or by registering their receipt.
Tryvertising
This type of sampling allows consumers to sample the experience of using a product or service.
Product demos
This type of sampling allows customers to see how a product works and ask questions, breaking through the clutter.
Product demos
This type of sampling method is good for complex products.
Try Me Package Example
Tickle-Me Elmo
Coupon Type
Time Release
Examples of Paired products with the Same Target Audience
Toy Story video game CD in Captain Crunch cereal
Targeted Sample Packages Examples
Toys R' Us Sample Package
Types of Promotions
Trade-In Promotions
Types of Promotions
Trade-Up Promotions
Types of Sampling
Try Me Packages
Try Me Packages
Try-Me packages are product packages, designed to allow consumers to "try" the product before they buy.
Types of Sampling
Tryvertising
Coupon Type
Universal Coupon
Coupon Redemption Rate
Usually 1.5% or something low
Retailer Handling & Processing Fee
Usually 10¢ ($0.10) per coupon redemption
DIY Demos/Demo Units
Usually demo experiences (such as classes using specific products) or displays offered in stores, where consumers can come, interact and experience products for themselves.
Types of Promotions
Value Added Promotions
Types of Promotions
Value or Bonus Pack
Products good for Sampling
Video Games
Types of Sampling
Virtual Sampling
Virtual Sampling Example
Warby Parker's Virtual Mirror for trying on glasses
Products good for Sampling
Web Portals (ex: AOL in its infancy)
Coupon Websites
Websites dedicated to collecting coupons for consumers to use (either online or printed).
Rebate Example
"Get $10 back when you spend $30"
Cross-Ruff Coupons
The advantage of this type of coupon is that it increases sales of slow-moving products that are manufactured by the same brand (or industry members).
Distribution Cost
= (X) quantity in circulation x $Y/1000(M)
Coupons Redeemed
= (X) quantity in circulation x Y% (Coupon Redemption Rate; ex: 1.5%)
Coupon Redemption Cost
= Coupons Redeemed x $1.00 face value
Actual Product Sold on Redemption
= Coupons Redeemed x 80% (0.8)
Retailer Handling & Processing Cost
= Coupons Redeemed x Retailer Handling & Processing Fee
Total Coupon Program Cost (Total Cost)
= Distribution Cost + Redemption Cost + Retailer Handling & Processing Cost + Creative Cost
Coupon Redemption Rate
= Quantity of Coupons redeemed (Cr)/Quantity of Coupons in circulation (Cc) (Cr/Cc = Y%)
Cost per product moved
= Total Cost/Actual Product Sold on Redemption
Cost per Coupon Redeemed
= Total Cost/Coupons Redeemed
Pairing products with the Same Target Audience
A cost effective method of sampling that distributes samples of other products with the same target audience
Universal Coupon Example
A coupon for all types of Kellog's Cereal
Value or Bonus Pack
A product that adds value over a previous version for the same or similar price.
Virtual Sampling
A relatively new form of sampling that allows consumers to upload photos of themselves to virtually try different products.
Samples
A sample of a consumer product that is given to the consumer free of cost so that he or she may try a product before committing to a purchase.
Coupons
A ticket or document that can be redeemed for a financial discount or rebate when purchasing a product.
Universal Coupon
A type of Coupon you can redeem against a variety of products from one manufacturer
Value Added Promotions
A type of promotion that adds value to products beyond the product itself.
Free Offers
A type of sampling method that offers a product to consumers for free, so that they may try it.
Targeted Sample Packages
A type of sampling that distributes packages with product samples to a desired target audience.
Types of Free Offers
AOL, free time CD's
Bounce Back Coupons
Also known as Repeat Coupon
Time Release Coupons
Also known as repeat purchase coupons
App Sampling
Also known as the "Freemium" model, this method of sampling allows users to use a limited version of an app, giving consumers the option to pay to unlock it's features, later on.
Samples
Although an expensive method of targeting customers, conversions to sales can be as high as 90% making it one of the main marketing strategies for certain markets.
Promotions
Any type of marketing communication used to inform or persuade target audiences of the relative merits of a product, service, brand or issue.
Types of Sampling
App Sampling
Advertising
Appeals to Consumers' hearts and minds
Consumer Promotion
Appeals to Consumers' wallets
DIY Demos/Demo Unit Examples
Apple Computers & Apple Classes
Promotions
The aim of this is to increase awareness, create interest, generate sales or create brand loyalty.
Cost per product moved
The cost of the program divided into each product actually sold on redemption
Types of Free Offers
BOGOs (Buy One, Get One)
Types of Free Offers
Ben & Jerry's Freecone Day
Value or Bonus Pack Example
Bigger size detergent for the same price as the smaller one was
Type of Consumer Promotion
Bonus Packs
Coupon Type
Bounce Back or Repeat Coupon
Value Added Promotions Example
Bunny bottle of Nestle Quick syrup
Factor in increased coupon redemption rates
The rarity of couponing for that specific item or brand.
Coupon Redemption Rates
They are the highest for instant on-pack & internet home printed
Bounce Back Coupons
Can be used on a larger size item or on multiple/several items for trade-up
Consumer Promotion
Can be used to appeal to users and non-users
Coupons
Can generate trial, trade-up and frequency
Sampling Distribution Method
Central location/Store
Sampling Distribution Method
Co-op package distribution
Premium or Prizes Example
Collecting Pokémon cards placed in packs of chips
Value or Bonus Pack Example
Concentrated detergent or soap
Type of Consumer Promotion
Contests/Sweepstakes
Creative Costs
Costs associated with Coupon Program Costing that from the graphic design work of the coupons
Coupon Type
Coupon Websites
Coupon Program Analysis
Coupon bar-codes & frequent buyer cards provide data on buying behavior
Type of Consumer Promotion
Coupons
Social Media Coupons
Coupons found/published on social media, usually related/made redeemable through some form of interaction on social media with the brand.
Direct Mail Coupons
Coupons sent directly, through the mail, to consumers; part of direct mail marketing.
Bounce Back Coupons
Coupons that accompany a delivered product within the product box or with the product statement or invoice.
Factor in increased coupon redemption rates
Coupons that are closer to the point of sales.
Factor in increased coupon redemption rates
Coupons that are of higher value to consumers.
Factor in increased coupon redemption rates
Coupons that have longer expiration dates.
Premium or Prizes Example
Cracker Jack prize inside a pack of Cracker Jacks
Examples of Paired products with the Same Target Audience
Cream rinse on bottles of shampoo
Pros of Coupons
Creates awareness, trial & repeat, purchase frequency
Types of Promotions
Cross Product Promotions
Cross-Product Promotion Example
Cross coupons
Cross-Product Promotion Example
Cross sampling
Coupon Type
Cross-Ruff Coupon
Sampling Distribution Method
Cross-product sampling
Targeted Sample Packages Examples
Sports Events
Time Release Coupons
This type of coupon has different expiration dates or usage periods to develop habitual use.
Types of Sampling
DIY Demos/Demo Units
Coupon Type
Daily Deal Sites
Key Influencer Sampling Example
Dental care products at a dentist's office.
Most popular things to get with coupons
Diapers, cereal, detergent
Coupon Type
Direct Mail Coupons
Sampling Distribution Method
Direct Mail Sampling
Samples
Done correctly, with this type of consumer promotion, marketers can create brand loyalty and assist in the launch of a product through word of mouth.
Sampling Distribution Method
Door hangers
Tryvertising Example
Driving a new car off the lot
Misredemption
Estimated to be about 20% of coupons redeemed.
Type of Consumer Promotion
Event Marketing
Products good for Sampling
Food & Beverage Products
Cross-Ruff Coupons
For product with similar target audience, within brand, company, or outside company.
Key Influencer Sampling
Supplying influencers (those most likely to influence a purchase decision) with Samples for them to distribute (either to their clients or followers).
Types of Promotions
Sweepstakes & Contests
Types of Free Offers
Free "flyer" miles w/ new E-Trade account
Types of Sampling
Free Offers
Value Added Promotions Example
Free Shipping with an order from Amazon
Types of Free Offers
Free cameras for e-photos
Types of Free Offers
Free karate, yoga, dance, art, etc. lessons
App Sampling Example
Freemium Games
Types of Samples
Freesample (freebie) & trial size
Targeted Sample Packages Examples
Fund raisers (high end) (WICI) (SHOAH)
DIY Demos/Demo Unit Examples
Game Console stations in stores
DIY Demos/Demo Unit Examples
Headphones on display with music
Sampling Distribution Method
In-Store Sample Pack
Coupon Type
In-store coupons
Consumer Promotion
Incentive to try and/or repeat purchase, that comes directly from the manufacturer.
Factor in increased coupon redemption rates
Items that are in every household (ex. mayo, detergent, etc.)
Cross-Product Promotion Example
Joint offers
Cross-Product Promotion Example
Joint retail displays
Types of Sampling
Key Influencer Sampling
Consumer Promotion
Lessens the risk of the trial
Cons of Coupons
Limited appeal, hard work, dependence on coupons
Type of Consumer Promotion
Loyalty Programs
Sampling Distribution Method
Magazines (in mag. or poly bags)
Coupon Program Analysis
Manufacturers can buy retailer's data
Targeted Sample Packages Examples
Maternity Wards
Targeted Sample Packages Examples
McDonald's Happy Meals
Examples of Paired products with the Same Target Audience
Mini lipsticks on nail polish bottles
Types of Free Offers
Money back guarantees
Sampling Distribution Method
Most sampling distribution methods include coupons
Sampling Distribution Method
Newspaper poly bags
Types of Sampling
Pairing products with the Same Target Audience
Products good for Sampling
Personal Hygiene Products
Types of Sampling
Targeted Sample Packages
Products good for Sampling
Post-it Notes
Type of Consumer Promotion
Premiums
Types of Promotions
Premiums or Prizes
Type of Consumer Promotion
Price-offs
Types of Sampling
Product demos
Product demos
Product demos are good for jewelry and fashion.
Misredemption
Products redeemed with fraudulent coupons or fraudulent coupon redemption reporting by businesses and entities.
Premiums or Prizes
Promotional items — toys, collectables, souvenirs and household products — that are linked to a product, and often require box tops, tokens or proofs of purchase to acquire.
Consumer Promotion
Pushes people over the edge to try/buy
Types of Promotions
Rebates
Free Offers
Reduces trial risk and is good if the product is low cost & superior.
Types of Promotions
Refund
Type of Consumer Promotion
Refunds/Rebates
Types of Sampling
Register Sampling
Coupon Type
Retailer In-Ad Coupon
Coupon Program Analysis
Retailers use data to evaluate manufacturers' programs.
Type of Consumer Promotion
Samples
Pro of Sampling
Samples are good for products with demonstrable points of difference
Register Sampling
Samples found at points of sale in stores.
Pro of Sampling
Samples help products break through clutter
Pro of Sampling
Samples maximize trial
Register Sampling Example
Sephora Make-Up Samples located at the registers.
Retailer In-Ad Example
Shoppers are an example of this type of coupon.
Coupons
Since only price conscious consumers are likely to spend the time to claim the savings, coupons function as a form of price discrimination, enabling retailers to offer a lower price only to those consumers who would otherwise go elsewhere.
Daily Deal Sites
Sites that offer daily coupons to be redeemed for products and services.
Examples of Paired products with the Same Target Audience
Skin cleanser pads in teen magazines
Coupon Type
Social Media Coupon
