Product Demonstrations

April 13, 2006

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For a small business, a demonstration is often the most effective and cost-efficient selling tool.

Demonstrations are often more expensive per sampled target buyer when compared to advertising costs per target reached. However, demonstrations are many times more effective than single advertising ad exposures in any media. According to recent studies, because of sampling, 51 percent of shoppers tried products they normally would not have tried. And 79 percent of those sampled bought the product when they felt they needed it.

Demonstrations should be conducted at point-of-purchase whenever possible to maximize the opportunity for a buyer or end user to purchase immediately. It is estimated that over 85 percent of all grocery purchases are not planned in advance. Buyers purchase many items on impulse because of a product or service demonstration. Go to your local supermarket at noon on a Saturday and observe (and enjoy) the moveable feast the product demonstrators offer.

A promotion demonstration often takes the form of a free product sample or free trial service. Demonstration personnel also act as a mini-sales force in explaining product features and benefits and providing personal consumption and use testimony. A small business is well-served to arrange as many promotion demonstrations and sampling opportunities as affordable on a continuous basis to build business. Demonstrations are particularly valuable as an effective (and often, low-cost) way to introduce new products and new services.

Also, demonstrations of products and services are the foundation for potentially free, word-of-mouth advertising, the most effective form of advertising known.

Show and Tell!

Demos come in many forms including open houses (to show off your new facilities), trade shows, local fairs, taste tests, test drives, and seminars. Product demos are very effective but service demos are sensational.

The popularity of seminars is growing, as they are effective in enabling service providers such as financial planners, physicians, and dealers in art and antique items to target and educate their potential customers.

While you will generally want to reach your target audience when you conduct seminars, you can also use them to build your business's community image. For example, a good place to try out your seminar might be at a senior center. Every community has one and they are often looking for program presenters. You don't want to put on a blatant commercial — just an informative, generic talk will win friends and influence people. The residents of the center may not be your target audience, but if you favorably impress them, others in the community will hear about it.