Definition
In retailing, a premium is merchandise offered at a lower price – or free – as an additional incentive for a customer to make a purchase.
from mrbreakfast.com
In sales promotion, a premium is an item of value, other than the product itself, given as an additional incentive to influence the purchase of a product.
In sponsorship marketing, premiums are souvenir merchandise, produced to promote a sponsor’s involvement with a property (customized with the names/logos of the sponsor and the property). [1]
An in-pack premium is a small, often low-value gift placed inside product packaging to encourage purchase or reward the purchaser.
A near-pack premium is a gift or other item generally too large to be included with or in the product package that is offered as an inducement to purchase. Commonly, the premium is placed near the product’s in-store location.
An on-pack premium is a gift attached to the product or product package in some way such as banding, taping, or other adhesive. It is used to influence product purchase or reward the purchaser.
See also
References
- American Marketing Association, AMA Dictionary.