The Internet has greatly changed the way businesses promote their products.
The explosion of marketing opportunities on the Internet is greatly changing the way companies promote products. The consumer magazine, which was "previously an uneasy marriage of advertising and editorial," according to Kantar Media, "is now embracing a third bedfellow in the form of online shopping." This hybrid medium, which lies somewhere between advertising and editorial, enables brands to promote their products and values while giving the impression they are providing information.
Sampling and Taste Tests
Wineries have long been a stronghold of taste-testing to promote their products.
Ninety percent of marketers engaged in product sampling as part of their promotional mix in 1993. Product sampling events made up 11 percent of the consumer promotion budget. Within the sampling budget, established products garnered the most dollars. However, by 2009, product sampling lost as brands made budget cuts due to a slowdown in the economy. Since sampling is not tied to retailer plans and has a long lead-time, it is one of the first categories to get cut. Some companies are beginning to experiment with Internet-requested sampling.
Free Gifts and Drawings
From free cups of coffee at the gas station to free makeup kits at the high-end department store, free gifts and drawings are two ways that businesses aim to draw customers in. Typically one retailer begins using a "free gift" promotion. If that promotion is successful, all the competition jump on the bandwagon. Eventually there is no competitive advantage to the promotion and businesses move on to some other method. Free gifts are the norm for online marketing, especially for information products such as how-to manuals.
Coupons and Stamps
Coupon inserts are traditionally part of the Sunday newspaper, but they are increasingly available through online programs.
Stamp, box-top or label collecting was once more popular than now. Consumers collected cereal box tops, cigarette pack labels or S&H Green Stamps and used them to purchase catalog items. Now collecting is more common in conjunction with charitable donations, i.e., yogurt lids for breast cancer support. Coupons, however, are still big business, getting even bigger with the advent of online deep discount social couponing companies.
Membership Clubs
Frequent-flier miles, book-of-the-month clubs, discount buying clubs and other membership rewards programs are all designed to build customer loyalty by giving frequent purchasers of products or services something extra to keep their business. Many companies collaborate on these programs; for example, the travel industry ties rewards in with airfare, hotel stays, rental car usage and online shopping for electronics, home products and even toys.
Games
Online games are a new promotional venue. If there was a lifetime achievement award for consumer promotions, Publishers Clearing House could win. Starting in a garage in 1953, the discounted magazine subscription marketer eventually became the largest magazine circulation agency in the industry. In 1967 it launched a sweepstakes to draw attention to its magazine deals. Since that time, over $223 million in prizes has been awarded. Now, the company offers many online opportunities to win, including PCH TV and PCH Lotto. Recently, it went "social," offering contests on Twitter and Facebook, and offering the downloadable game applications "PCHTrivia" and "PCHSlots" for iPhone.
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