Marketing Promotions

Coupons, Contests & Samples Drive Sales for Business

The Promotion Trends Report by Promo Magazine, revealed that consumer promotional spending for companies in 2002 was 233.7 billion. Spending increased 3.7% in 2002, signaling a strong trend of businesses adding promotional marketing to their overall advertising budget.

What is Promotional Marketing?

Promotional marketing is a business marketing strategy designed to stimulate a customer to take action towards a buying decision. Promotional marketing is a technique that includes various incentives to buy such as:

Contests: We all like to win something for free. Contests offer an attractive marketing vehicle for small business to acquire new clients and create awareness. You don't need to run a billion dollar giveaway like Pepsi, just a valuable prize to your target market.

Coupons: After a sluggish 2001 for coupons, CMS, a promotion management company reported, 2002 coupon distribution increased 3.4% to 336 billion coupons.

Sampling: Do free samples work? Giving your product away for free may seem profit limiting but consider the case of Seth Godin. Godin released a book called "The Idea Virus" in 2000. Unlike other authors, he did not charge for the book instead gave it away for free as an e-book. In less than 30 days over 400,000 copies were downloaded. This created a buzz about the book and even through free, people bought the hard cover; making the book #5 on the Amazon best seller list.

Creating Powerful Promotional Marketing

Before starting a promotional marketing campaign for your small business take the time to carefully plan the incentives and objectives. Ask yourself the following questions:

Is your promotion in compliance with State and Federal laws. Promotional marketing incentives must comply with the law. For instance, the Federal Trade Commission states "when a "free" offer is tied to the purchase of another product, the price of the purchased product should not be increased from its regular price."

Any contests or sweepstakes offered by a company that require a purchase to enter are illegal in the United States. Check your country or state government agency to make sure you comply with regulations and laws.

The continued spending by small and large companies on promotional marketing is a clear indication that promos work. Apply promotional marketing to your small business and experience a sales boost.

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