Student Corner - 250

Sales Promotion: Consumer Promotion

The objective of consumer promotion is attracting the attention of the customer to make him buy your product and/or service frequently; in other words, it means indirectly promoting your business and providing it sustainability.

So far, we have seen some tools of consumer promotion and we will see some more tools. Monetary benefit to the consumer is the major way to promote consumer promotion; offering monetary benefit can be in so many ways depending upon the company and its innovative approach to the consumer. The cost reduction without compromising quality or with one more product given for the same price forms the popular method companies largely adopt.

Price pack is the terminology used in the business circle promoting consumers. Bundle pricing is also known to fall under the category of price pack approach.    In all these tools so to say, the main components are appeal to the customer and mindfulness of the cost to the company. Focus must be on these two facts; failure to focus on any one of the two will end up flat nil promotion. If your product does not appeal to the customer, your product will not see its customer; and, if you do not attend to the cost for the company in this tool, your revenue generation will receive a hit leading to loss to the company.

Bundle pricing certainly attracts the customer because the cost of the bundle is less than the total cost of the products bundled. Again, care must be taken while bundling the products.  You cannot bundle a prime product with definite command in the market with a new product provided you are sure of the quality of the product; or, you can bundle a product which has rather a less market share though it has quality and a certain period of existence. Experts’ suggestion may be sought; and, under no circumstances, the appeal and the cost of the company, of the products must be lost sight of. No doubt, bundle pricing is largely customer-oriented in the sense it will generally attract the attention of the customer. Additionally the company can effectively exploit the bundling practice by distributing the less profitable products. One thing must not be forgotten. Customers today are very knowledgeable and cannot be taken for granted. It is not advisable to try to out-smart the customer because it might land you in the exit of the customer.

We will see some of it in our next before we move on to Trade Promotion tools.