COUPONS BASICS Using freebies to make people come in

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3. COUPONS BASICS Using freebies to make people come in

• Select low-cost yet attractive product, ideally one that is not sold in high volumes • Avoid cannibalization – giving products for free that would otherwise be sold • Prepare to offer other products to ‘coupon customers’ or condition giving the free one on another purchase • Thoroughly prepare the graphics or a coupon, possibly using expert help • Organize the distribution of coupons • ‘Free surprise Pohnpei-authentic product’ upon showing this coupon WHAT WHEN HOW E.g. • You have products that are sufficiently low-cost to give away • You have the capability to print and distribute coupons to the right audience • You are ready to offer other profitable products when ‘coupon customers’ show up Distributing coupons in, for example, mass media or frequented locations, that entitle customers to obtain free products, sometimes conditioned on buying a certain quantity or other products TRAFFIC PROMO 3 169 Coupons should motivate customers to come into your store and buy some products by giving them something for free or at a discount. Just make sure that ‘something’ looks meaningful and attractive. But at the same time, try to avoid giving free things to people who would have come in and bought this product even without a coupon. Striking this balance is difficult but can be found by careful selection of the right coupon offers e.g., low-cost products, products that currently do not sell too much, yet can appear attractive. Also, consider where the coupon is located ―to make sure it reaches the appropriate people. The coupon for this free Hawaiian mug might be great in a tourist guide or brochure, for example. – 2.2 PROMOTION: Traffic Promotions – Would a coupon work for your business? 170 4. COOPERATIVE MARKETING BASICS ‘Pulling the same rope to offer more to customers …’ • Determine complementary businesses for joint marketing effort • Agree on the theme e.g., brochures and poster, distribution, etc. • Prepare promotional materials • Split costs and responsibility • Proactively market the coop • Location-authentic products • Farmers market • Joint ‘one-stop’ distribution of produce WHAT WHEN HOW E.g. • One business or product is not enough to attract new customers to a location • Several businesses have non-competing products or can all benefit from increased traffic Combining promotional efforts with other businesses to reach a greater number of potential customers than if each firm promoted individually TRAFFIC PROMO 4 171 A very simple concept ―partnering with similar businesses to prepare a more attractive proposition for customers than you could do just by yourself, and also to share the cost of promotions. Maybe the possibility of buying your product is not a good enough reason for a customer to make a trip to your area of town. However, the possibility of buying several other products offered by other businesses, including yours, might provide a sufficient reason to come. For example, having one stand selling produce two miles away from a small town’s center may not be reason enough for anyone to go there. However, 50 stands selling different types of produce, meats, breads, and beverages, such as in a farmers’ market, may encourage people to make the trip. Advertising the marketplace can help increase traffic to everyone’s stalls. – 2.2 PROMOTION: Traffic Promotions – Can you think of an example of coop- marketing for your business? Can you think of businesses with which you could partner? 172 COOPERATIVE MARKETING EXAMPLE: POHNPEI- AUTHENTIC PRODUCTS TRAFFIC PROMO 4 The Only Ecologically The Only Ecologically Farmed Sponge in the World Farmed Sponge in the World MICRONESIAN MICRONESIAN NATURAL SEA SPONGE NATURAL SEA SPONGE Proven health benefits Proven health benefits with great taste with great taste MADEU MADEU – – NATURAL NATURAL CINNAMON CINNAMON THERAPEUTIC THERAPEUTIC TEA TEA ‘MADE IN POHNPEI PRODUCTS’ World renowned World renowned culinary pepper culinary pepper POHNPEI BLACK PEPPER POHNPEI BLACK PEPPER The most rare and exquisite among world’s black pearls NUKUORO BLACK PEARLS By buying these natural products, you are not only enjoying world-class quality, but also contributing to island communities in some of the most remote and exotic locations on the planet 173 Situation: there are no ‘famous’ products in Pohnpei except possibly for pepper ―famous meaning that a typical tourist does not know what heshe should buy in Pohnpei as a souvenir, nor does it become apparent when heshe enters a store. Also, tourists do not have a strong association of quality with Pohnpei products. Yet, there are some great even world-class quality products made in Pohnpei, including the four above. One way to tackle this problem and start promoting Pohnpei products and positioning them more strongly in the eyes of tourists is to conduct a coop-marketing campaign. Such a promotional campaign could include a ‘Pohnpei-authentic’ or ‘Made in Pohnpei’ sticker to start building the ‘brand name’ and to differentiate these products from others. “We have some very cool products in Pohnpei ―look for the sticker” is probably a more effective proposition and a cheaper campaign than each of the producers trying to ‘do it themselves’ for their specific product. – 2.2 PROMOTION: Traffic Promotions – What about cross-marketing? What comes to your mind? 174

5. CROSS-MARKETING BASICS Using others businesses’ customer base