|
|
 |
Incentive
Spending Tops the List |
Consider
these statistics. According to Promo magazine, of the $80 billion or so
spent in the U.S. on promotion marketing in 1998, almost one-third went
for premiums and incentives, well outpacing
P-O-P displays, which took second place with $13.1 billion.
Think consumer incentives, and count among the major users the biggest names
in American business, from Burger King to Xerox. Incentives often come into
play to support new product launches and product repositioning.
|
|
Incentives
are also used in the following ways in consumer promotions: |
Gift-with-purchase
offers: added value to prompt people to make or increase purchases;
frequently used by fast-food, automotive, telecommunications, and other
industry giants.
Frequency programs: awards given to loyal customers, now
a part of every major airline and hotel chain's marketing mix.
Self-liquidators: special items customers can purchase
at a low cost that breaks even for the sponsor; used by many of the top
names in consumer products.
Direct mail syndication: sale of special items to customers
at reduced prices; these programs are a staple of the credit card and utility
industries.
Sweepstakes and contests: frequently used to get customer
attention and generate increased response; almost every company uses one
from time to time.
Onpacks/near packs: merchandise packaged in some way with
a product. |
|
|
