Premiums
Premiums are promotional items - toys, collectables, souvenirs and household products that are linked to a product, and often require box tops, tokens or proofs of purchase to acquire. The consumer generally has to pay at least the shipping and handling costs to receive the premium. Premiums are sometimes referred to as prizes, although historically the word "prize" has been used to denote (as opposed to a premium) an item that is packaged with the product (or available from the retailer at the time of purchase) and requires no additional payment over the cost of the product.
A successful premium campaign is beneficial to a company as it aids in establishing effective consumer relationships.
A good campaign will:
(1) strengthen early-stage consumer relationships
(2) encourage continued repeat business
(3) assist with targeting a specific audience or cohort of your target market
(4) create an emotional connection with your consumer by serving as a motivational driver to investigate further or purchase a product.
It's also important not to confuse premiums with other forms of sales promotions as there are a number of ways in which retailers can entice consumers.
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