• Attract attention.
• Offer a substantial discount without misredemption problems.
• Reward non-users of coupons.

Disadvantages of Rebates

• Affected by rising postage costs.
• Reward loyal users.
• May be less appealing to consumers who want immediate gratification.

When planning a rebate, marketers should consider the following:

• Removable proof-of-purchase.
• Offer length.
• Complexity (complex offers can depress redemption).
• Exposure vehicles (in-store, in-pack, on-pack, etc.).
• Percent reward.
• Copy.
• Slippage (rebates sent to consumers, but never cashed).

Source: PMA

On-pack and In-packs - Premiums or coupons inserted in or attached to a product.

Advantages of On-packs and In-packs

• Can differentiate the product at point of sale.
• May serve as a future reminder to buy.
• Can allow costs to be determined in advance.

Disadvantages of On-pack and In-packs

• Can be expensive to manufacture and distribute.
• May be refused by the retailer.
• Can be pilfered.

Source: PMA