OMM 615
Consumer Promotions
The University of Arizona Global Campus
OMM 615 Strategies: Marketing/Advertising/Public Relations
Consumer Promotions
Organizations are in the business of making money. As a result, marketers are becoming
more inventive in promoting their products or services, resulting in increased sales. In today’s
competitive market, sales promotions are a must. The two significant promotions are aimed at
trades and consumers. Consumer promotions offer discounts or freebies, whereas trade
promotions provide incentives for other businesses to purchase products or services and then sell
to consumers (Ogden & Ogden, 2014). Consumer promotions come in various forms that
businesses can utilize to acquire new customers, keep existing customers happy, and improve
sales. This paper will examine seven different consumer promotion methods: coupons, sampling,
cash refunds or rebates, premiums, point-of-purchase (POP) display or point-of-sale (POS)
display, loyalty programs, free trials, and how they might be used in a product. It will also show
which strategy is the most successful and why.
Coupons
Coupons are one of the most popular and commonly used sales promotions nowadays.
They can be found on store shelves, in magazines and newspapers, in direct mail advertisements,
text messaging, and even on the internet. They are little documents that reduce the retail price of
products or services when used. When coupons are used, it encourages consumers to buy more
frequently. When consumers see a coupon for their favorite cosmetic, they will use the coupon to
buy it and buy it in bulk to save money.
The number of times a coupon is recorded via swipes or scans at the store allows
marketers to track the success of a coupon program. Like the TV show Extreme Couponing, it
, depicts how individuals save money on daily essentials for their families and how they would
donate the excess to their families, friends, overseas, and local shelters while keeping a
reasonable amount for themselves. Coupons pull and attract new and existing customers to
businesses. As a result, they have garnered a lot of traction and acceptance among businesses and
marketers.
Sampling
When you shop at Ulta, Sephora, or Mac, a sales assistant will ask if you would like a
free sample of a beauty item like eyeshadow, lipgloss, lipstick, a new scent, and more, or you
will get a free sample with your order when you shop online. It exposes consumers to other
products that they may not be aware of through sampling. Consumers are introduced to a new
product or complementary products through sampling. Sampling is a popular and successful
method of introducing cosmetics to customers to help them with their beauty and skincare
routines. The only negative of sampling is the cost of giving away samples for free in the hopes
that the customer would enjoy it and purchase the item. Sampling uses a pull strategy to
convince customers to want their products or services. When clients take a free sample or receive
a free sample, the company can see if the new product or service is favorably received.
Cash Refunds or Rebates
Consumers who purchase through affiliated links supplied by cash back services such as
Rakuten.com, Mr. Rebates, and others are eligible for cash back. In addition, cash back website
users will know much they will be compensated for each purchase made at a specific retailer
ahead of time (Qiu & Rao, 2020). For example, if consumers purchase a cosmetic product and
get home and notice they bought the same product, they can take that product back to the store
and get a refund if they are unopened and have a receipt. Alternatively, if they do not like the
item, they can return it and get their money-back guarantee.
Consumer Promotions
The University of Arizona Global Campus
OMM 615 Strategies: Marketing/Advertising/Public Relations
Consumer Promotions
Organizations are in the business of making money. As a result, marketers are becoming
more inventive in promoting their products or services, resulting in increased sales. In today’s
competitive market, sales promotions are a must. The two significant promotions are aimed at
trades and consumers. Consumer promotions offer discounts or freebies, whereas trade
promotions provide incentives for other businesses to purchase products or services and then sell
to consumers (Ogden & Ogden, 2014). Consumer promotions come in various forms that
businesses can utilize to acquire new customers, keep existing customers happy, and improve
sales. This paper will examine seven different consumer promotion methods: coupons, sampling,
cash refunds or rebates, premiums, point-of-purchase (POP) display or point-of-sale (POS)
display, loyalty programs, free trials, and how they might be used in a product. It will also show
which strategy is the most successful and why.
Coupons
Coupons are one of the most popular and commonly used sales promotions nowadays.
They can be found on store shelves, in magazines and newspapers, in direct mail advertisements,
text messaging, and even on the internet. They are little documents that reduce the retail price of
products or services when used. When coupons are used, it encourages consumers to buy more
frequently. When consumers see a coupon for their favorite cosmetic, they will use the coupon to
buy it and buy it in bulk to save money.
The number of times a coupon is recorded via swipes or scans at the store allows
marketers to track the success of a coupon program. Like the TV show Extreme Couponing, it
, depicts how individuals save money on daily essentials for their families and how they would
donate the excess to their families, friends, overseas, and local shelters while keeping a
reasonable amount for themselves. Coupons pull and attract new and existing customers to
businesses. As a result, they have garnered a lot of traction and acceptance among businesses and
marketers.
Sampling
When you shop at Ulta, Sephora, or Mac, a sales assistant will ask if you would like a
free sample of a beauty item like eyeshadow, lipgloss, lipstick, a new scent, and more, or you
will get a free sample with your order when you shop online. It exposes consumers to other
products that they may not be aware of through sampling. Consumers are introduced to a new
product or complementary products through sampling. Sampling is a popular and successful
method of introducing cosmetics to customers to help them with their beauty and skincare
routines. The only negative of sampling is the cost of giving away samples for free in the hopes
that the customer would enjoy it and purchase the item. Sampling uses a pull strategy to
convince customers to want their products or services. When clients take a free sample or receive
a free sample, the company can see if the new product or service is favorably received.
Cash Refunds or Rebates
Consumers who purchase through affiliated links supplied by cash back services such as
Rakuten.com, Mr. Rebates, and others are eligible for cash back. In addition, cash back website
users will know much they will be compensated for each purchase made at a specific retailer
ahead of time (Qiu & Rao, 2020). For example, if consumers purchase a cosmetic product and
get home and notice they bought the same product, they can take that product back to the store
and get a refund if they are unopened and have a receipt. Alternatively, if they do not like the
item, they can return it and get their money-back guarantee.
