Premiums

=**Premiums** =

====**A second form of consumer promotion is the offer of a premium. Premiums are prizes, gifts, or other special offers consumer receive when purchasing products. When a company presents a premium, the consumer pays full price for the good or service, in contrast to coupons, which grant price reductions**==== ====**Some marketing experts believe overusing coupons damages a brand's image. Conversely, premium can actually enhance an image. The key is to pick the right type of premium. Premiums can be used in the attempt to boost sales; however, they usually are not as successful as counpon sales. Nevertheless, premiums remain a valuable consumer promotional tool. In the united States, over $4.5 billion is spent on premium each year.**====

Benefits of self-liquidating premiums : • manufacturer receive money for shipping and handling


= = =McDonald's Singapore Premium Brewed Coffee TV Ad=

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Keys to Successful Premium Programs

 * ===**Match the premiun to the target market**===
 * ===**Careful select the premium ( avoid fads, try for exclusivity)**===
 * ===**Pick a premium that reinforces the firm's product and image**===
 * ===**Integrate the premium with other IMC tools ( especially advertising and POP displays)**===
 * ===**Don't expect premium to increase short-term profits**===

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Reference:
//Building brands with premiun-based promotion. ( n.d.) http://www.milmour.com/milmour/types_of_premiums.asp//