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Freebie marketing for business marketing in 2019
by Team Koderey Digital marketing institute in delhiFREEBIE MARKETING
The term freebie marketing can be somewhat misguidance. A product does not
have to be given away for free to be considered part of the freebie marketing campaign.
Check for the best courses after graduation for more.
Another term used to describe this kind of marketing is " loss leaders." And “razor
and blades business model”
In this model, a company sells an item for a very low price, or gives it away, under the
the premise that accessories and supplies for that item will bring in repeat business or
consistent sale. For example, a retail mobile store may have a special low price on a
popular Samsung phone in the hopes that customers will also buy tempered glass
and phone cover from the store as well.
Using freebie marketing can be most effective. If you have the core of loyal customers,
then they can be a profitable target for freebie marketing. As an example, if you gave
all of your male customers a free shaving kit, then you would hope that those loyal
customers would buy all of their replacement blades and shaving cream from you.
You need to be careful or aware while using freebie marketing as it can lead to a huge
loss. If you offer a printer for a price that is below your cost, then you are hoping for
the sale of the ink cartridge, cleaner, etc to make it worth your investment. However,
your competitor may decide to undercut you on the price of ink cartridge causing you
to lose significant revenue on your freebie marketing campaign.
Customers love to get things for free, and shopkeepers love to give away free items
that require costly accessories or supplies to run. Before you get involved in a
freebie marketing campaign, try to get a discount on products from your supplier.
In some cases, if you will tell your supplier about your marketing plans, he may
decide to get involved and offer you a great discount on your giveaway products and
give you some marketing funds as well. If you can offset the costs of a freebie
marketing campaign, then you stand a much better chance of making a profit.
Benefits of freebie marketing.
1. Long term benefits to the seller
Using freebie marketing can be very effective to sellers in the long run as if
they give away free products to customers, their loyal customers can be
there lucrative target.
2. Helps in branding
Using freebie marketing can help you to promote your showroom or shop as
well as customers who got satisfied with shopping will promote you’re your
business with word of mouth and it can be very effective in the long run.
3. Helps in exploring the market
Freebie marketing also helps the seller to explore the market, when he will
clear his old stock then he is able to go for new stock when his old stock is
sold he can explore marketing and buy the products according to the taste of
their lucrative targets.
Disadvantages of freebie marketing
1. Lead to loss if the customer didn’t buy accessories
Freebie marketing can also lead to a loss if the customer will not buy accessories
from his shop or if the prices to the competitor are low, the customer will definitely
prefer to buy from him.
2. Can also affect branding
Freebie marketing can also lead to defaming the shop or showroom as if the
product sold to customers will not work well or not effective for him than his
reviews to other possible customers will lead to loss and also affect branding.
3. Costly
It can be costly also as if the product will give away to customers with huge
discounts or for free and the margin in accessories is low, then It may lead to loss to
owner.
Does Freebie strategy work?
Freebie marketing strategies are good for both small business as well as huge
business, these strategies are used for many years now as big companies provide
samples to customers and ask them for their reviews, it helps them to get reviews
about the product and change needed in the product and is a product is good, customers will
buy product on a regular basis and also promote it to their family and friends.
And yes this strategy is works and good for making trust on customers.
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About Team Koderey 
Digital marketing institute in delhi
25 connections, 0 recommendations, 146 honor points.Joined APSense since, October 22nd, 2018, From delhi, India.
Created on Jul 3rd 2019 02:46. Viewed 791 times.
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