Product Trial

1.Think about some examples of products that you have tried for the first time – these can be a new or existing product. What was it that persuaded you to try out the product? Were you satisfied with it? Do you still buy it? 2.Think time – 1 minute 3.Partner 1 go first- wait for start 4.In pairs, Partner 1 shares, Partner 2 listens 5.Time up 6.Partner 2 responds by summing up what Partner 1 has said 7.Partners switch roles – wait for start Take timed turns listening, sharing and responding Think, Pair Share

Learning Outcomes AllMostSome Understand what is meant by ‘product trial’ Identify the main methods of encouraging product trial Understand how the main methods of encouraging product trial work Suggest appropriate methods of encouraging the trial of a given new product Explain and justify the choice of method of product trial

What is ‘Product Trial’? Product trial is the way in which a business persuades customers to buy and try out a new good or service It is intended to help raise awareness of the new product’s existence and gain feedback on its possible success Product trial is also designed to help build loyalty to the product and thus establish repeat purchase

Methods of Product Trial There are a number of different ways in which a business can get customers to try out a new product: –Advertising –Free publicity –Free samples –User testing –Low trial prices –Targeting trade buyers Task: On your handout you have examples of different methods of product trial. Neatly cut out the different methods and match them up with the explanations before sticking them in your book.

Advertising Customers are more likely to trial a product if they know about it Advertising is one way in which customers can be informed about the product Advertising can use the media i.e. television, radio, cinemas, newspapers and magazines Outside of the media, advertising can be via direct mail or and can also be placed on billboards, posters, etc

Advertising Some funny TV adverts!

Free Publicity This is also referred to as public relations (PR) Businesses launching a product want journalists and producers in magazines, newspapers, the TV and on the Internet to write about their new product – free publicity! So, journalists and producers may be invited to a launch party or sent articles and information which the business has written itself – this is then adapted by the journalists to use in their own publications

Free Publicity – Viral Marketing On the internet, one way of getting publicity is to get people recommending a product to a friend This is called viral marketing because the message is spread like a virus from one person to another Sites like MySpace, Facebook, Twitter and YouTube can be targeted in this way

Viral Marketing Some famous viral marketing campaigns…

Free Samples A special stand in a supermarket is sometimes used to give out free samples of a new product For some products, such as perfume or make-up, free samples may be given away in magazines Have you been offered any free samples recently?

Free Samples (and PR!) The following video is about a business that could not afford to use advertising to encourage product trial

User Testing With some products, it is not possible to give out samples Potential customers can be offered a test trial of a product instead For example, cars can be taken for a test drive and games consoles or games can be tried out in shops or at roadshows

Low Trial Prices Businesses may choose to offer new products at a lower price – this is known as penetration pricing For example, a product might have a low price for the first month after launch, or there may be special offers such as two for the price of one Coupons given away free in magazines and newspapers or over the internet may give money off

Targeting Trade Buyers Some businesses do not sell directly to consumers – they sell to trade buyers such as supermarket chains New products can be promoted to trade buyers in the same way as consumers i.e. advertising literature can be sent out or low introductory prices can be offered Sales people may also visit large trade buyers to show them the new product

Targeting Trade Buyers The following video is about how Bulldog Natural Grooming products got into Sainsburys

Activity For this activity, you will need to be working in groups of 4. Each group is going to be considering how they would encourage product trial for one of the following products: A new chocolate bar, a new soft drink, a new hair styling product or a new model of VW car. What methods will you use and how and why will they work for your particular product? Be creative! Use the paper I have given you to write down your group decision. Each group needs to have scribe who is responsible for writing down. Be ready to present your findings to the rest of the class !

Plenary Activity Time to present your product trial plan!

Learning Outcomes AllMostSome Understand what is meant by ‘product trial’ Identify the main methods of encouraging product trial Understand how the main methods of encouraging product trial work Suggest appropriate methods of encouraging the trial of a given new product Explain and justify the choice of method of product trial