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Industry jargon not your thing? Our glossary will enlighten you!

What is a consumer promotion?

Consumer promotion encompasses a variety of marketing tactics designed to appeal directly to consumers and motivate them to buy. This can be done through discounts, vouchers, competitions, product samples, loyalty programs and other incentives.

Consumer promotion objectives

The main objectives are:

  • Increase short-term sales volume.

  • Building brand awareness and loyalty.

  • Introducing new products or services.

  • Increase customer loyalty through rewards and incentives.

Types of consumer promotions

  • Discounts and offers: Discounts on products or services.

  • Vouchers and coupons: Offer consumers savings on future purchases.

  • Loyalty programs: Reward returning customers for their loyalty to the brand.

  • Competitions and prize draws: Offer the chance to win prizes in exchange for purchasing or interacting with the brand.

  • Product samples: Free or discounted products to encourage customers to try and buy.

Implementation and challenges

When implementing consumer promotions, companies need to understand their target groups and develop campaigns that appeal to their needs and interests. Challenges can include costs, measuring return on investment (ROI) and maintaining brand equity.

Measurement of success

The success of consumer promotions is often measured by KPIs such as sales growth, customer acquisition costs, customer retention rates and brand awareness.

Future perspectives

As technology advances, so do the methods of consumer promotion. Personalized offers and digital campaigns are becoming increasingly important.

FAQ

Consumer promotions focus on direct incentives for end consumers, while other marketing strategies are broader and can focus on brand building or B2B relationships.