Monday, August 20, 2012

Promotions - Free Gas


I do not believe it when the idea was introduced to me. It seemed too good to be true. Free gas? Let's go. With the price of gas that can afford to give it away?

The answer is simple, the people who compose it.

These companies know that when you combine marketing and promotions, they can do anything. And when they promote things correctly, everyone wins.

They also know that their continued growth depends on establishing a dominant market share position.

And one of the big oil companies are going after market share is to establish brand loyalty.

They know that the real profit comes from a constant, repeatable business, the pump and the store. That's because they have advertising campaigns and those cute names for their gas. They want us to think that their gas is somewhat better than their competitors.

This marketing approach helped to strengthen brand loyalty, at some point. But not enough.

All advertising in the world only brings in so much business. In order to increase market share, had to be creative. So, are giving the stuff, well, more or less.

You see, they are working with companies to promote and sell, free gas gift cards. These companies sell gift cards for associations, churches, schools and other companies to use as a brilliant promotional offer: free gas.

The gas gift cards are sold for a small fee, and are offered in denominations of $ 100, $ 300 and $ 500 as gifts.

Here's an example of how it works. A marketing manager in a non-profit organization offers donors $ 100 in free gas for a donation of $ 100. This means that the organization receives tax deductible donations over $ 100 worth $ 100 of gas. And, the organization observes a peak of their donations. Everybody wins.

There is a "catch". The person using the card must choose a brand of gas to use for the gift card. They buy the gas, keep the receipt, and then send it for a refund.

That's all, a true win / win.

By Wayne Douglas ......

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