Consumer-oriented sales promotion includes sampling, couponing, premiums, contests, and sweepstakes, refunds and rebates, bonus packs, price-offs, and event marketing. Each of these promotions are directed at consumers, the end purchasers of goods and services, and are designed to induce them to purchase the marketers brand.
The first example of consumer-oriented sales promotion that I came across was refund and rebates. I was looking to purchase a cell phone and was trying to get the best deal I could find. When I found the phone I wanted I saw it had a $50 rebate. A rebate or a refund is an offer by the manufacturer to return a portion of the product purchase price, usually after the consumer supplies some proof of purchase. Which is exactly what I had to do. Once I received the phone I had to send in a copy of the serial number, a copy of my receipt and a proof of purchase receipt that they supply you with. Within the next couple of weeks I should receive my $50 back in a check format and once I cash it, its as good as anything. This rebate encouraged me to switch cell phone carriers, which is one of the main goals that rebates and refunds work towards.
Problems that could be associated with rebates are that consumers are not motivated by a refund offer because of the delay and effort required to get the savings, and that consumers may become dependent on their rebate and it will delay their purchases to only brands for which a rebate is available.
Another example of consumer-oriented sales promotion that I came across is couponing. Couponing is the oldest, most widely used, and most effective sales promotion tool. Every week I receive a number of direct mailers and catalogs, and with them come coupons. The most recent coupon I received is one for loehmanns, it allows me to take $10 off my next purchase of $50 or more. Coupons along with every other type of sales promotion comes with advantages as well as limitations for ... Continue Reading