Thursday, December 05, 2019

MBA in a Nutshell #16 - Marketing : Marketing Mix - Discounts and Premiums

This is a strong article to run-down all the possible discounts and premiums that can be given out with a product offering :

Premiums

a) Gift with purchase

Last Christmas, KitKat chocolates came in Avengers tin containers. That's almost a gift and my son loved it.

b) Purchase with Purchase

If you buy something, you get to buy something else at a discount. Amazon Kindle books now give credits to buy more kindle books and I can't seem to stop buying books because of that.

Discounts

a) "Twofer" 

In Singapore, we call this buy one get one free.

b) Coupons

This is highly irritating. A coupon entitles you to a discounted offering in a future purchase. From what  I know, F&B outlets offering coupons always have the shittiest food.

c) Samples

You get a small sample of detergents or coffee to entice you to make a purchase. Baby milk powder is commonly promoted this way.

d) Contest / Sweepstake

A contest requires some skill - like a stock picking contest. A sweepstake is called a lucky draw in Singapore in that it does not require any skill.

e) Incentives

This is more like  a business to business arrangement where a manufacturer send the boss of the retail outlet to a holiday is they successfully push their product. Your insurance agents get these incentives the most. 

f) Product publicity

Press releases can lead to freebies for example.

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