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.
