In marketing, a product demonstration (or "demo" for short) is a promotion where a product is demonstrated to potential customers. [1] The goal is to introduce customers to the product in hopes of getting them to purchase that item.
Products offered as samples during these demonstrations may include new products, new versions of existing products or products that have been recently introduced to a new commercial marketplace.
Product demonstration enhances the quality of the sales presentation by providing a visual support. [2] It is provided to be effective way to address the prospect 's specific product-related concerns. [2]
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In-store demonstrations are usually performed at large retail locations, such as supermarkets, department or discount stores, or in shopping malls. [1] The products that are promoted at in-store demonstrations may be food and beverages, food preparation equipment, housekeeping products, personal care items, or occasionally other types of goods. The samples that are distributed may either be in readymade packets pre-assembled for the demonstration, or are prepared on site by the demonstrator. Some demonstrations involve the distribution of prepared food, requiring the demonstrator to bring equipment such as a microwave oven or hot plate to the location.
Often, coupons for the product are distributed as part of the demonstration. Some demonstrations consist of coupon distribution only.
Demonstrators may be employees of the store where the demonstration is being performed, employees or the manufacturer of the product, or independent contractors who work for a temp agency. Most are not trained to seek out customers likely to buy the product. [3]
In-store demonstrations allow potential customers to touch or taste a product before they buy. [4]
By the mid-1950s Ron Popeil states that "I was working in the Woolworth's store in Chicago selling the Chop-O-Matic, standing eight or 10 hours a day. I would do six demonstrations an hour. My vocal cords were so strained that I wouldn't want to talk to anybody when the day was over." [5] The concept of the in-store demonstration started to boom in the 1980s. [6]
Door-to-door, and by-appointment salespeople demonstrate such products as Tupperware, encyclopedias, vacuums, and carpet stain removers.
Prototypes are often demonstrated in trade shows, and are called "tech demos".
Product demonstrations have been a staple of state fairs for many years.
The first product demonstration in a format that would later be called an infomercial is attributed to a 1949 demonstration of the Vitamix blender. [7]
Many countries around the world do not place legal restrictions on outdoor product marketing and demonstrations. Salespeople set up temporary sites to demonstrate their wares in order to attract sales.
A wide variety of products are demonstrated roadside throughout the China. Such products include frying pans, induction cookers, rubber gloves, vegetable peelers and slicers, stain removers, and knives.
Though uncommon today, the street demonstration was ubiquitous in such places as the Boardwalk in Atlantic City. [8]
Included with a purchase, a video on a DVD disc may be provided demonstrating the product's use.
Video product demonstrations can also be found on the Internet at the homepages of companies or on web hosting sites such as YouTube. One notable example is the viral video Will It Blend? demonstrating Blendtec blenders.
Product demonstration videos have become increasingly important for the sale of music equipment. With the increase of online shopping, there are fewer opportunities to try a product prior to purchase. This has a particular problem for music equipment which, unlike other technology, the quality of the sound produced may come down to a more personal preference and may not be as closely related to the specifications of a particular product.
YouTube is one of the main hosts of music equipment videos, and channels may be run by retailers, publishers, musicians or even manufacturers themselves. [9] With decreases in music sales, demonstration videos have become an additional source of revenue for full-time musicians, with artists such as Rob Chapman (musician, 1975) having over 400,000 subscribers.
Ronald Martin Popeil, was an American inventor and marketing personality, and founder of the direct response marketing company Ronco. He made appearances in infomercials for the Showtime Rotisserie and coined the phrase "Set it, and forget it!" as well as popularizing the phrase, "But wait, there's more!" on television as early as the mid-1950s.
Sales are activities related to selling or the number of goods sold in a given targeted time period. The delivery of a service for a cost is also considered a sale. A period during which goods are sold for a reduced price may also be referred to as a "sale".
Sales promotion is one of the elements of the promotional mix. The primary elements in the promotional mix are advertising, personal selling, direct marketing and publicity/public relations. Sales promotion uses both media and non-media marketing communications for a pre-determined, limited time to increase consumer demand, stimulate market demand or improve product availability. Examples include contests, coupons, freebies, loss leaders, point of purchase displays, premiums, prizes, product samples, and rebates.
An infomercial is a form of television commercial that resembles regular TV programming yet is intended to promote or sell a product, service or idea. It generally includes a toll-free telephone number or website. Most often used as a form of direct response television (DRTV), they are often program-length commercials, and are typically 28:30 or 58:30 minutes in length. Infomercials are also known as paid programming. This phenomenon started in the United States, where infomercials were typically shown overnight, outside peak prime time hours for commercial broadcasters. Some television stations chose to air infomercials as an alternative to the former practice of signing off, while other channels air infomercials 24 hours a day. Some stations also choose to air infomercials during the daytime hours, mostly on weekends, to fill in for unscheduled network or syndicated programming. By 2009, most infomercial spending in the U.S. occurred outside of the traditional overnight hours. Stations in most countries around the world have instituted similar media structures. The infomercial industry is worth over $200 billion.
Best Buy Co., Inc. is an American multinational consumer electronics retailer headquartered in Richfield, Minnesota. Originally founded by Richard M. Schulze and James Wheeler in 1966 as an audio specialty store called Sound of Music, it was rebranded under its current name with an emphasis on consumer electronics in 1983.
In marketing, a coupon is a ticket or document that can be redeemed for a financial discount or rebate when purchasing a product.
A blender is a kitchen and potaxie appliance used to mix, crush, purée or emulsify food and other substances. A stationary blender consists of a blender container with a rotating metal or plastic blade at the bottom, powered by an electric motor that is in the base. Some powerful models can also crush ice and other frozen foods. The newer immersion blender configuration has a motor on top connected by a shaft to a rotating blade at the bottom, which can be used with any container.
Direct marketing is a form of communicating an offer, where organizations communicate directly to a pre-selected customer and supply a method for a direct response. Among practitioners, it is also known as direct response marketing. In contrast to direct marketing, advertising is more of a mass-message nature.
Online shopping is a form of electronic commerce which allows consumers to directly buy goods or services from a seller over the Internet using a web browser or a mobile app. Consumers find a product of interest by visiting the website of the retailer directly or by searching among alternative vendors using a shopping search engine, which displays the same product's availability and pricing at different e-retailers. As of 2020, customers can shop online using a range of different computers and devices, including desktop computers, laptops, tablet computers and smartphones.
Ginsu is a brand of direct marketed knives. The brand is owned by the Douglas Quikut Division of Scott Fetzer, a Berkshire Hathaway Company. The brand was heavily promoted in the late 1970s and 1980s on U.S. television using infomercials characterized by hawker and hard sell pitch techniques. The commercials generated sales of between two and three million Ginsu sets between 1978 and 1984.
Ronco was an American company that manufactured and sold a variety of items and devices, most commonly those used in the kitchen. Ron Popeil founded the company in 1964, and infomercials and commercials for the company's products soon became pervasive and memorable, in part thanks to Popeil's personal sales pitches. The names "Ronco" and "Popeil" and the suffix "-O-Matic" became icons of American popular culture and were often referred to by comedians introducing fictional gadgets and As-Seen-On-TV parodies.
Anthony Joseph "Chef Tony" Notaro is an advertising pitchman for cooking and kitchen products, seen primarily on infomercials and home shopping channels.
K-tel International Ltd is a Canadian company which formerly specialized in selling consumer products through infomercials and live demonstration. Its products include compilation music albums, including The Super Hits series, The Dynamic Hits series and The Number One Hits series and consumer products, including the Record Selector, the Veg-O-Matic, the Miracle Brush, and the Feather Touch Knife. The company has sold more than half a billion units worldwide.
Brick and mortar is an organization or business with a physical presence in a building or other structure. The term brick-and-mortar business is often used to refer to a company that possesses or leases retail shops, factory production facilities, or warehouses for its operations. More specifically, in the jargon of e-commerce businesses in the 2000s, brick-and-mortar businesses are companies that have a physical presence and offer face-to-face customer experiences.
The term mobile commerce was originally coined in 1997 by Kevin Duffey at the launch of the Global Mobile Commerce Forum, to mean "the delivery of electronic commerce capabilities directly into the consumer’s hand, anywhere, via wireless technology." Many choose to think of Mobile Commerce as meaning "a retail outlet in your customer’s pocket."
Didi Seven, and DiDiSeven or DiDi7, and Didi7, is a stain remover made famous by its infomercial television marketing campaign.
Price-based selling is a specific selling technique in which a business exclusively reduces their price in attempt to close the sales cycle. Price-based selling clearly exists in businesses such as: commodity sales, auto sales, hospitality, and even some retail stores. However, it is only recommended that commodity items like petroleum be sold exclusively by price. Selling on price is even more apparent now in the current US economy as most businesses make the switch to the lowest price approach in attempt to attract more consumers. Car insurance companies like Progressive Auto Insurance advertise specifically with their price, as they promote the amount of money that can be saved by making the switch.
Philip Kives was a Canadian business executive, entrepreneur, and marketing expert from Winnipeg, Manitoba. He is best known for founding K-tel, which sold household gadgets including the Miracle Brush, Feather Touch Knife, Veg-O-Matics, as well as many compilation record albums.
In marketing, premiums are promotional items — toys, collectables, souvenirs and household products — that are linked to a product, and often require proofs of purchase such as box tops or tokens 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 an item that is packaged with the product and requires no additional payment over the cost of the product.
Vita-Mix Corporation, doing business as Vitamix, is an American company that manufactures and sells commercial and residential blenders. Vitamix was founded in 1921 by William Grover Barnard and is privately owned by the Barnard family. It has been based in Olmsted Township, Ohio, since 1948. It employs more than 700 people, most at its Northeast Ohio headquarters and manufacturing facilities. Vitamix products are sold in over 130 countries.