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Free Sample Marketing Basics

Guest post by: John Clark

Article Overview: Free sample marketing is a technique that many companies successfully employ. It is also known as the razor and blade business model, because it was popularized by Gillette. When used effectively, it is a great promotional technique. For new products or services, it educates consumers and encourages them to make future purchases.

Free Sample Marketing Basics

Free sample marketing is a technique that many companies successfully employ. It is also known as the razor and blade business model, because it was popularized by Gillette. When used effectively, it is a great promotional technique. For new products or services, it educates consumers and encourages them to make future purchases. For Gillette, the strategy was simple. A razor lasts a long time and consumers don't need to purchase one very often. On the other hand, the blades wear out quickly. People buy more blades than they do razors. To increase the sales of the Gillette brand blades over their competition, they began selling the razors very cheaply.

Other examples include:

• Printer manufacturers sell printers for less than fifty dollars in order to increase the sales of the ink cartridges.

• Affiliate marketers may give away a product free. The customer is required to pay for shipping and handling, which is often over-inflated.

• Satellite television and cable companies routinely give away DVRs when the consumer commits to a more expensive package for a contracted length of time.

• Free samples of new product launches introduce people to the benefits of a product or service.

• Co-branding uses the trusted image of an established company as a means to both increase the sales of that brand and to give away free samples of a new brand.

Advertising Through the Grapevine

Free sample marketing uses the grapevine to get people excited about a product. Everyone loves to get something free. It increases the perception of value. Whenever someone gets a good deal, he or she is likely to talk about it with others.

Word of mouth is a very powerful form of advertising. It leverages the credibility of the person talking about a product. Consumer purchasing decisions are heavily influenced by their social circles. They are more likely to buy an item if it is recommended by friends or family because they trust them.

In this manner, free sample marketing uses a short time frame to generate a buzz quickly. Offering free samples for one week is much more stimulating than giving things away for a month. Not only does this strategy prevent consumer boredom, but it also compels them to act fast.

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Article Tags: blade, business model, consumers, free sample, gillette, marketing, razor
Referred by: http://www.saveonquotes.com



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