Free cheese only in a mousetrap!

We are constantly faced with advertising in various forms, we like some kind of advertisement, some kind of annoying, some may even seem like a freebie!
Under the cat considered some types of advertising campaigns. The purpose of the review is to show what free cheese is seasoned with, so that consumers can better understand what large companies are doing and why.

Some species are considered very briefly, because they are obvious.
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So, an axiom: A store (any commercial organization) will not sell at a loss - any advertising increases the profit of the organization and this increase exceeds marketing expenses .

Hooray Aunt Asya arrived

Classic advertising (videos on TV, billboards, banners) is used to position the product, promote the brand, become familiar.
What is the role of brand awareness? On the shelf in the supermarket, Burenka milk will cost 35 rubles, while Penthouse in the Capital milk will cost 50 rubles and will be bought. It turns out that the buyer pays the manufacturer for advertising, and he pays extra from above (see the axiom)
If we estimate the cost of one display of advertising to one consumer - television is cheaper than advertising on the Internet.

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Contextual advertising is an advertisement that is offered to a consumer who most likely needs it. Here, besides Yandex Direct, I also include advertising for the increase in various organs on thematic sites.
The main advantage of this advertisement is that it can be really useful to the consumer. Advertising is also convenient for the service provider - it is easy to regulate the cost and number of customers.
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Hot Santa Claus will increase your corporate by SMS

Spam - hated by all spam. A heavily discredited way to promote services, often used by scammers or hackers. Everything is clear about him.
With all its flaws - spam is the cheapest and most effective method of advertising. And he, alas, is applicable for companies that need one-time customers. I hope that with the growth of computer literacy the situation will change

Tasty as orbits doorknob

Viral marketing is an advertisement that runs with a minimum budget and is designed to be distributed further by consumers. About him on Habré have already written a lot , I will not repeat.
Sometimes an ad acquires a viral character by chance, as happened with an Orbita ad - the phrase “tasty as Orbit” unexpectedly broke up for advertisers (and maybe not completely unexpectedly ;-)

You want to receive information!

Many reputable companies organize regular work with loyal customers - send advertising letters, glossy catalogs, special offers. In this case, the consumer may refuse such a mailing, and may subscribe voluntarily.
Supporting such customers can be expensive for a company (the cost of preparing and printing glossy catalogs and mailing lists), but a loyal client can become a gold mine - he will come several times himself and bring friends, they will pay the cost of printing catalogs for everyone who did not come the second time.
I can’t say anything interesting about this ad.

Want to lose weight - ask me how

Direct sales, they are also network marketing, they are also MLM.
These firms generate huge profits, and their products are not advertised on TV and are not sold in supermarkets. How does this work?
Firms educate super-loyal customers, to whom they sell their products. These people are called "independent entrepreneurs" and they are forced to buy products on a monthly basis in large volumes, otherwise their own profits will begin to fall sharply. Products are delivered to end-users through acquaintances, while “independent entrepreneurs” have 30% of revenue per item. In addition, a classical pyramid is built and each participant receives a share from those who came for him.
Supplements, dishes, cosmetics, household chemicals are distributed in this way. Products are usually not cheap, but are of good quality.
With all the current attitudes towards Herbalife and others - this business has proven itself well from all sides:
Owners get fiery profits, “independent entrepreneurs” get the opportunity to earn (and this is especially true outside the capitals), and consumers get quality goods.
“Independent entrepreneurs” also receive good personal growth: sociability, sociability, ability to convince, always a good mood and a feeling of happiness from belonging to a new family.
Direct sales companies actively watch over those who generate high incomes. For example, they rent a five-star hotel in Turkey for a month in the summer and arrange a free seminar there.

One dollar discount when you buy a Mercedes

When something fails to sell - sellers declare discounts. Nothing particularly interesting about the discounts can be said, except that at any discount the seller still makes a profit from each unit sold. Discounts up to 70% allow only a little better estimate of the standard markups of this store.
It is useful to know that a discount can be made in many stores in large shopping centers - managers simply do not offer them unnecessarily. Do not hesitate to ask for discounts - the store will not sell at a loss anyway. To assess the size of margins: a German suit for 300 euros in Moscow is sold for 50,000 rubles.

You have our card!

Discount and discount cards stores issue in order to create loyal customers. If you have two cafes in front of you - Shokolodka and Coffee MD, and you have a Shokolodka card in your pocket - you will definitely go there. And the cafe will receive instead of 300 rubles with a probability of 50% - 270 rubles, but guaranteed. And if the money is also on this card, then the decision of the consumer is almost predetermined. If everything is so cool, then why no one offers cards for free?
This is protection from freeloaders. If you collect free cards, there is no difference where to go. And if money is paid for a card, then you will not only choose certain places, but getting to competitors will not pay for their discounts either. So a discount card is just a way to tie a customer to a specific place.
I rarely met such promotions, but they are brilliant - sometimes the stores offer discounts on competitor cards, provided that the card is replaced. Thus, consumers simply buy over, this is a great success for the store.

Buy three refrigerators - get ice cubes for free

Promotions common in retail networks: purchase bonuses, buy 4 for the price of 3, tastings.
This is a freebie - so a freebie: they give for free!
Let's calculate how such freebies work:
The cost of a two-liter bottle of sugared soda ... well, 5-10 rubles, no more, the cost of a glass cup is about 10p. And water is sold at 60p.
Income from one bottle of water 50p.
The income from two bottles and a glass: 2 * 60 - 2 * 10 - 10 = 90r.
With other things being equal, most still usually buy one bottle, but when they offer to buy only two and get a glass for it - many consumers will go for it, and the store's income increases.
Specifically, this and other techniques from retail chains are described in the book by Alex Levitas “More money from your business” - I recommend it to familiarize all customers, it opens its eyes to many things.

Do our work for us and get some candy

And finally, the most interesting is “contests”. I will give a couple of examples

Buy three bottles of beer hmelnik, write an ode and get the airship.
How it works:
1. choosing between two identical beers - Khmilnyk and Three fools - the consumer will choose the one that promises the airship
2. he will buy not one bottle, as usual, but three
3. while he will write an ode - he himself will believe that Khmilnyk beer is better, even Three Fools
The increase in sales during the campaign will exceed the cost of the airship by tens (or even hundreds) times - many people drink beer.
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Invite 30 friends to the social network Vekte and get player yaPoc Shuhher
How it works:
1. a pyramid is being built - already at the fourth level of the pyramid, the visitor no longer has enough friends for the player, because everyone else will already be invited - the number of people who invited 29 people exceeds the number of winners
2. In pursuit of the player, visitors will ask friends to register and will themselves distribute information.
3. Hundreds of thousands of people begin to discuss the player yaPots and want it. And when they can not get it - some of them will go and buy it. After all, I want to!
Successful motivation of visitors allows you to conduct a super-effective advertising campaign with minimal costs.

Slow down i'm writing

Why did I write all this?

I will cite a few more facts:
1. Suppose some product is sold for $ 100. This means that the cost price (cost of production, delivery, rental of premises, customer service for the sale, all taxes) is $ 5- $ 15. All the rest is the total net profit of all companies that take part in this process - manufacturer's markup, transport campaigns, printing companies markups, advertising costs, store profit.
2. Consumers make huge profits in total, so competition arises for consumers and sellers are forced to spend money on advertising.
3. Any visible freebie is a slight decrease in this total markup. Such shares are calculated to compensate for the loss of profit from one unit of goods due to a multiple increase in the number of sales.

And the paradox is that the consumer pays for advertising and selling goods to him!

Buyers, it remains only to choose who we specifically allow to make a profit at our expense. This does not mean that you do not need to buy - you can’t get away from it, you just have to weigh everything before you go for free.

I will explain my words with the last two examples:
1. I drink tea, but for me there is no difference between White Sea Canal and Turki tea, both of them cost 50 rub. I usually alternate these two types and buy a pack of tea once a month. And then I come to the store and they offer me to buy 4 packs of Terok and get a mug for a cheat.
From the point of view of the manufacturer:
The cost of a pack of tea is 15 rubles, the cost of a cup is 30 rubles, the profit from one pack is 35 rubles, and from four packs with a mug: 110 rubles.
There are two alternatives - in 4 months I will buy 2 packs of their tea at 50p, or 4 at once, but with a mug. The profit of the company will be 70 rubles or 110 rubles.
And for my part - I still drink tea, and here I will also get a mug. I have enough dishes, but I still take the mug, because I don’t pay anything extra for it.

2. I eat salt. And I do not care what salt is: Suck, or Elk.
Sosi-salt offers a super-action: buy 10 packs of salt in two months and get a plush mouse in a green cap. The mouse is cool - it is cool and knows how to squeak, I want it.
But eating too much salt is harmful, I don’t need 10 kg of salt at home. Therefore, I will hammer on a mouse that I don’t need and buy as much salt as usual.



UPD: Still, there are situations when the store really sells something below cost:
* when the store is closed and transporting goods somewhere else is unprofitable.
* when no one buys a product and it’s necessary to sell the leftovers
* when the buyer is attracted due to the low price of one product in the calculation that he will buy something else
But! This does not negate the fact that these actions are beneficial to the store - the company still pursues its goals and they do not coincide with the goals of customers ;-)

Such situations are rare (relative to the total number of stores), but there are. Again, you need to think through and consider what is beneficial for you when you buy and what is not. If you don’t need a broom, you don’t need to buy it even if it costs 1 ruble)