- Category: Miscellaneous
- #594900There is one reason to give free products because some products are in old stock and not moving faster, so giving free with some products attract to sale your products and at the same time you are clearing the old stock too. This is normal trick to sale the products. If an old stocks which help to get sale faster to your current products, why not to use it. However, not always the free products are "free", the marketing people already discuss the prising and then they provide free scheme.
- #594908When a product is introduced into the market for the first time lot of advertisement is required to get the market share. For this there are many strategies. Introductory offers will be coming. This is for sales promotion only.
Old stocks are cleared by discount sales generally. Another way they clear it is buy two get one free scheme. They will sell a pack of three. 2 will be new stock and third one will be old stock. If all the three are from old stock the customer may not come back for next purchase.
All the expenses they are incurring will be added into the cost once regular market started. Last month I was travelling to New Delhi from Hyderabad airport. In the airport Sensodyne paste sample pack were being given to travelers. I got one. It is a fresh stock and quite good. After that I started using that paste.
So free samples are for sales promotion only.
- #594944No I don't think so. Some time to launch products, it is possible for free supply as advertisement or some times to reduce old stock. remember, nothing is free in the world.
Honesty is the best policy.