Question

Topic: Advertising/PR

Penetration Cost Per Consumer

Posted by Anonymous on 6/4/2010 at 12:46 PM ET 125 Points
Hi all, I am trying to find out how much money, in terms of either dollars or cents, a medium sized manufacturer spends to get their product known to Consumers, including these promotional methods, on a per Consumer basis:

1. Average cost per Consumer to get a coupon in the Consumers hand.

2. Average cost per Consumer to get a sample of their product into a Consumers hand.

Any help would be greatly appreciated!

Sorry if I sound like a layman, b/c I am.

Thanks in advance!

Jim
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RESPONSES

  • Posted on 6/4/2010 at 2:54 PM Author
    ADDENDUM: OK - Lets say 100,000 Customers as an example. I am just looking for some kind range of high/low cost per Consumer. $.50 per Consumer? $2.50 per etc?
  • Posted by mgoodman on 6/4/2010 at 5:00 PM Moderator
    The range is probably so broad as to be useless. Maybe it's $0.05 to $500.00. It depends on the market, the value of a customer, the price point of the item being sold, the frequency of purchase, etc., etc.

    If the coupon is for a car, it might be $500 or $1,000 or more. If it's for a dozen eggs it might be for just $0.50.

    Separately, I question whether coupons are necessarily the best way to "get a product known" to consumers. But that's a question for another day.
  • Posted on 6/4/2010 at 6:13 PM Author
    Hi, to clarify, I am not asking what the coupon amount would be. That would be whatever the company wishes to offer.

    I am asking what would be the approximate cost, for a middle sized manufacturer company, or how much would a typical company like that, pay for either:

    1.having a company distribute a coupon to a consumer, or,

    2. having a company distribute a sample to a consumer.

    So if a company has a coupon for $x.xx OR a product sample which they want distributed to say 100,000 consumers, roughly, what would they typically pay another company to distribute the coupons of products, directly to those consumers?

    The basis for my question is this: I am going to sell a product. Lets imagine it is a sponge. In addition to buying my product, I want to add as a bonus, coupons, or samples from other companies products, for my buyers. I want to offer say, 100,000 buyers, either a coupon for $x.xx and/or a product sample for a particular product that consumers would use with MY product. As an example, imagine window cleaner solvent which would work great with my sponge.

    So I am trying to establish a figure which I could use to present to a the window cleaning solvent company for this distribution to, say 100,000 consumers. Should I offer this guaranteed distribution [and endorsement] of their product to each of MY product buyers for a fee of $.50 per consumer ($50,000), or $1.00 per consumer ($100.000) etc?

    Sorry that I did not make this more clear. My error! Thanks for your responses!
  • Posted by Chris Blackman on 6/6/2010 at 8:58 AM Accepted
    Jim

    If the product is really a window cleaning solution which might retail for say $3 or $4, I can't imagine any manufacturer being willing to spend 50c or $1 to get either a coupon or a sample into a consumer's hands. Not without some questions, anyway, such as:

    1. Do these consumers actually wash their own windows?
    2. Are they buying a competitor's product now?
    3. Would they switch?
    4. Are they in an area where we have good distribution through stores?

    I'm guessing they can put coupons into prospective consumer's hands through print media for a few cents per unit. You have to be able to compete with that.

    Maybe there's a better way. mall sales teams demonstrating this product (sponge and solution) working together might actually SELL the product at full retail or even at a premium to launch the product prior to sales through established retail chains. That seems like a far more effective way to raise consumer awareness and actually get some sales at the same time.

    Hope that helps

    ChrisB
  • Posted on 6/13/2010 at 11:21 AM Author
    I was hoping to get a more definitive answer. But thank you to all who responded!
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