What is Advertising?

Advertising is a marketing tactic involving paying for space to

promote a product, service, or cause. The actual promotional
messages are called advertisements, or ads for short. The goal of
advertising is to reach people most likely to be willing to pay for a
company’s products or services and entice them to buy.

12 Major Advantages of Advertising–

The major advantages of advertising are: (1) introduces a new product

in the market, (2) expansion of the market, (3) increased sales, (4) fights
competition, (5) enhances good-will, (6) educates the consumers, (7)
elimination of middlemen, (8) better quality products, (9) supports the
salesmanship, (10) more employment opportunities, (11) reduction in
the prices of newspapers and magazines, (12) higher standard of living!

The benefits derived from advertising are manifold. It is one of the

most important components of the marketing process.
This is beneficial to manufacturers, traders, consumers and society as a
whole. Advertising offers the following advantages.

(1) Introduces a New Product in the Market:

Advertising plays significant role in the introduction of a new product in

the market. It stimulates the people to purchase the product.

(2) Expansion of the Market:

It enables the manufacturer to expand his market. It helps in exploring

new markets for the product and retaining the existing markets. It plays
a sheet anchor role in widening the marketing for the manufacturer’s
products even by conveying the customers living at the far flung and
remote areas.

(3) Increased Sales:

Advertisement facilitates mass production to goods and increases the

volume of sales. In other words, sales can be increased with additional
expenditure on advertising with every increase in sale, selling expenses
will decrease.

(4) Fights Competition:

Advertising is greatly helpful in meeting the forces of competition
prevalent in the market. Continuous advertising is very essential in
order to save the product from the clutches of the competitors.

(5) Enhances Good-Will:

Advertising is instrumental in increasing goodwill of the concern. It

introduces the manufacturer and his product to the people. Repeated
advertising and better quality of products brings more reputation for
the manufacturer and enhances goodwill for the concern.

(6) Educates The Consumers:

Advertising is educational and dynamic in nature. It familiarises the

customers with the new products and their diverse uses and also
educates them about the new uses of existing products.

(7) Elimination of Middlemen:

It aims at establishing a direct link between the manufacturer and the

consumer, thereby eliminating the marketing intermediaries. This
increases the profits of the manufacturer and the consumer gets the
products at lower prices.

(8) Better Quality Products:

Different goods are advertised under different brand names. A branded
product assures a standard quality to the consumers. The manufacturer
provides quality goods to the consumers and tries to win their
confidence in his product.

(9) Supports The Salesmanship:

Advertising greatly facilitates the work of a salesman. The customers

are already familiar with the product which the salesman sells. The
selling efforts of a salesman are greatly supplemented by advertising. It
has been rightly pointed out that “selling and advertising are cup and
saucer, hook and eye, or key and lock wards.”

(10) More Employment Opportunities:

Advertising provides and creates more employment opportunities for

many talented people like painters, photographers, singers, cartoonists,
musicians, models and people working in different advertising agencies.

(11) Reduction in the Prices of Newspapers and Magazines Etc:

Advertising is immensely helpful in reducing the cost of the newspapers

and magazines etc. The cost of bringing out a newspaper is largely met
by the advertisements published therein.

(12) Higher Standard of Living:

The experience of the advanced nations shows that advertising is
greatly responsible for raising the living standards of the people. In the
words of Winston Churchil “advertising nourishes the consuming power
of men and creates wants for better standard of living.” By bringing to
the knowledge of the consumers different variety and better quality
products, it has helped a lot in increasing the standard of living in a
developing economy like India.

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9 Types of Consumer Sales Promotion Tools

HomeMarketingRetail Marketing9 Types of Consumer Sales Promotion

Tools

Table of Contents [show]

What is Consumer Sales Promotion?

Sales promotion aimed at consumers is called ‘consumer sales
promotion‘. It aims at stimulating consumers. The main consumer
promotion tools include samples, coupons, demonstration, contests,
cash refund offer, premium, etc.

Types of Sales Promotion ToolsTypes of Sales Promotion Tools

Types of Consumer Sales Promotion tools

1. Samples

Samples are one of the most important tools of sales promotion.

Samples are defined as offers to consumers of a small amount of a
product for trial. Free samples are given to consumers to generate their
interest in the product. Samples help consumers verify the quality of
the product.

Samples are delivered at the doors of consumers. They are also sent by
mail or given to customers in the retail store itself. Sometimes, samples
are attached to another product.
Though sampling is effective, producing numerous samples of a product
is quite expensive. Moreover, distributing samples to customers also
involves expenditure.

Sampling is not justified in case of

well established product

a product that is not superior in some way to competing products

a product with a slow turnover

a product with a narrow margin of profit, or

a highly fragile, perishable or bulky product.

2. Coupons

A coupon is a certificate that fetches buyers a saving when they

purchase a specified product. Coupons are generally issued along with
the product. They entitle the holder to either a specified saving on a
product or a cash refund.

Coupons are designed

to introduce a new product

to promote the sale of an established product

to sell a product in large sizes

to stimulate customers to switch brands; and

to encourage repeat sales.

Coupons are used for consumer convenience goods. They may be

distributed door to door, by mail or they may be inserted in packages.
Sometimes, coupons may be part of magazine or newspaper
advertisements.

3. Demonstration

Demonstration is required when products are complex and of a

technical nature. Customers are educated as to how to make proper
use of the product. Demonstration of products induces customers to
buy. Demonstrations are provided free of cost.

4. Contests

Contests are the promotion events that give consumers the chance to
win something such as cash, trips or goods. Contests are conducted to
attract new customers. They introduce new product by asking the
prospects to state the reasons for the purchase of the product.
The buyer purchases the product and submits the evidence of purchase
with entry form for contest. Entry forms are duly filled by the buyers. A
panel of judges selects the best and buyers are given prizes.

5. Cash refund offer

Cash refund offers are rebates allowed from the price of the product. It
is an offer to refund part of the purchase price of a product to
consumers who send a proof of purchase to the manufacturer.

Moreover, if the purchaser is not satisfied with the product, the whole
price or part of it will be refunded. Cash refunded offer is stated on the
package.

6. Premium

Premium refers to goods offered either free or at low cost as an

incentive to buy a product. A premium may be inside the package,
outside it or received through mail. The reusable package itself serves
as a premium.

Premium is generally offered for consumer goods such as soap,

toothpaste, etc. Premium may be of several kinds — direct premium,
reusable container free in mail premium, a self liquidating premium,
trading stamps, etc.
Direct premium can be inside the pack or outside it. A reusable
container can be reused after the product is reused. Free in mail
premium means a premium item will be sent by mail to consumers who
present proof of purchase to the manufacturer.

A self liquidating premium is the extra quantity offered at the normal

price. Trading stamps are given by the seller to consumers. These are
redeemable at the stamp redemption centres.

7. ‘Price off’ offer

Goods are sold at reduced prices during slump season. Reduction in

prices stimulates sale of goods.

8. Consumer sweepstakes

A sweepstakes calls for consumers to submit their names for a draw.

Names of consumers are included in a list of prize winning contest. The
lots are drawn and the winners get prizes.

9. Buy back allowances

Allowances are granted to buyers on the basis of their previous
purchases. In other words, buy back allowances are given for new
purchases, based on the quantity of goods bought previously.