The Marketing Book 5th Edition

Piggy-back
premiums

Packaged goods Usually joint promotions. Can generate

complementary sales and encourage product

trial

‘Free Gillette GII with Kleenex For Men’

gained Gillette 100 000 trials and KFM 13%

extra sales

Competitions Packaged foods,
retailers

Good for creating interest and reinforcing ad

campaigns. Needs care with legalities

McDonald’s $40 m Treasure Hunt. Heinz’s

‘Win a Car a Day for 100 Days’ campaign

Information Industrial firms,
consumer durables,
services

Important for reducing perceived risk.

Provides consumer benefits of convenience

and saved time

Product catalogues. Holiday brochures.

Investment guides. CD-ROM catalogues

Valued packaging Retailers, FMCG
firms

Packaging can be useful in itself, or can

provide a game, activity, recipe or other

information

Sony’s regular offer of a free case with

cassette and mini-disc multipacks. The

enduring Paul Masson wine carafe

Loyalty cards Retailers Card applications and usage can be linked to
EPOS information to create database
marketing and targeted promotion
opportunities. Some concerns about level of
loyalty achieved

Boots Advantage Card has over 13 million

members and over 50% of its sales are card

related

Gift coupons Petrol retailers,
draught beers

Useful for non-packaged goods. Helps

encourage repeat purchases

Over 3 million users registered on-line for

the Pepsi ‘Stuff’ mechandise collection during

2000

Product trial Consumer
durables

Often twinned with a competition. Needs

close sales support

200 000 Apple Macs were ‘home tested’, 40%

led to sales

Guarantees Consumer
durables, retailers

‘Pricebeat’ promises often back up sales to

reduce perceived risk

Supermarket ‘Refund and Replace’ offers.

During 2001 Vodafone and EasyJet used

‘Price Promises’ of refunding the difference if

customers found lower prices elsewhere

Cashback offers Consumer
durables

Costs depend upon redemption rates.

Over-redemption can be insured against

Sanyo’s 1988 10-year buyback pledge

boosted TV sales by 62%

Clubs Airlines and hotels,
children’s products

Useful for generating customer loyalty Marriott Hotels’ Rewards scheme has over

15 million members and Burger King’s Kids

Club has more the 5 million members

worldwide