Fixed fee promotional campaigns require a client (marketing manager) to pay a pre-determined amount for a whole promotional campaign, but use a campaign mechanic whereby the redemption rate and cost of the promotion are subject to variations.
As a marketing manager, redemption campaigns can allow you to offer much higher value gifts to clients based on assumption that redemption rate is usually far lower than straight gifting. If you offer a nice/expensive product and there is a big take up from end customers it can blow your marketing budget. This is why Fixed Fee Companies offer a method to calculate these costs and insure marketing manager against over redemption and cost overruns.
What is the role of marketing manager:
- Fix a Budget
- Agree on the prizes/gifts/rebate and marketing space
- Define how much promotion will be done (Magazines, TV, Radio, On-Pack, Newspaper, POS, Internet …)
- Decide on the starting and ending date for the promotion
- Design your artwork
- Launch the promotion
- Agree with client on fixed fee for this promotion and associated mechanics/terms.
- Make sure that all the redemptions are fulfilled according to the terms offered to end customers.
- Manufacture the product to be redeemed and hold sufficient stocks, if applicable.
- Logistics and fulfillment of the orders.
- Take full responsibility on all the associated costs.
- Maintain adequate insurance against massive cost overruns.
What kind of products/campaigns could use a fixed fee promotion?
- Petrol station – collect coupon every visit and customers select gifts from catalogue.
- Collect XX tokens on cerial packets and get a set of free kitchen bowls..
- Select a lucky customer. Give them get a chance to score a goal/get a hole in 1 at golf etc.. If they score they win US$1 million.
- Lucky draw for chance to win small to very big prizes.
Fixed Fee gives marketing managers scope to use a new level of creativity flow without having to worry about budget.
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