Product Demonstration - Meaning, Importance, Types & Example
Published in Marketing and Strategy Terms category by MBA Skool Team
What is Product Demonstration?
Product demonstration or demo is a technique to introducing or promoting the products to its potential customer base. Product demonstrations can be for products new to the market or revised versions of older products or a whole new category of products. Such demos enables display of the performance of the product in real time, facilitates trial purchases and helps the customer to evaluate the product. Product demonstration has been identified as one of the best sales tool and also helps in knowing the target customers better.
Product demonstration may be done through several channels. Products may be demonstrated physically or online. The product is demonstrated to potential customers with the intention to make them purchase the product.
In store product demonstrations are usually done in large retail shops like department and discount stores, supermarkets and shopping malls. Product demonstrations in store could be foods & beverages, housekeeping products, food preparation equipments, personal care items etc. The samples so distributed may be in the form of readymade packets which are pre assembled for the purpose of demonstration. Some demos may also require prepared food distribution to the customers. Some distribution involves coupon distribution only. These demonstrators are the trained employees of the store. It is a kind of promotion strategy adopted by companies to get closer to their customers and make loyal customers.
1. In-store product demo- Demos done in stores and retail outlets
2. In-home product demo- Demonstration done through visit into customers; home
3. Trade shows & Fairs having people showing demos at kiosks
4. Demos using TV & online advertisements
Advantages of Product Demonstration
Some advantages of demos are:
1. Product demonstration stimulates interest through a touch and feel factor. This is especially true if the key selling points and unique features of the product design, such as with fashion, lifestyle, furnishings, etc. The ability to see, feel and sometimes smell your product is generally more attracting to the prospects than merely hearing the sales pitches.
2. It conveys a sense of ownership. Example- free trials of products.
3. Product demos provides a ready proof. The product, sample, video, brochures, pictures and other tools used in any demo are known as devices for providing the proof of the product. They show a tangible evidence which effectively compliments what the sales person says. Buyers’ general assumption is that all sales people talk good about the product. They would never inform any bad. Showing what the product offers, what it is capable of doing, making the customers experience it, further stamps the proof.. For example, food samples help grocery shoppers experience the taste quality and know all the ingredients themselves.
4. Product demonstration helps combat all the product related concerns of the buyer. Sometimes due to the market reviews the buyers have wrong information have a set of pre conceived notions. Demonstrations help break into these and provides a clear knowledge about the product.
5. Such demos helps to grow sales faster by helping the customer experience the product. So, there is a faster conversion rate.
6. The customer can check if the product fulfills his wants and has the time and authority to trial and test before he purchases.
7. Tackling discernible problem becomes easier during the demonstration and the resolution of the problem almost confirms the sale
8. Product defects and lacuna are easier to point out
Disadvantages of Product Demonstration
Certain drawbacks of such product demos are:
1. Increase in Cost- Product demos may require home visits and lot many sales persons for the task. Also, products meant for the purpose of demonstration have to be produced and kept at all places. These add cost to the company.
2. Invest of time in wrong prospects- Many a time, customers may take test and demo of the product but they don’t purchase it. Investing time on such non-potential customers yields no benefits to the company.
3. Increased product wastage- Customers during product demonstration are likely to identify defects in products or frequent demonstration may even render products defective. These demo products turn into wastes for the company which is additional loss for the company.
Examples of Product Demonstration
Showcase of electrical appliances is a good example of product demonstration. Such products are made to run to demonstrate its function to the customer. The customer takes the feel and then makes a decision depending on whether he liked the product or not.
Another example could be another example. Car testing where the customers go for a ride is nothing sort of a product demonstration. The customer may not experience the product if he does not himself use for a considerable amount of time. For meeting this purpose, customers are left to drive freely with a complete test-drive.
Hence, this concludes the definition of Product Demonstration along with its overview.
This article has been researched & authored by the Business Concepts Team. It has been reviewed & published by the MBA Skool Team. The content on MBA Skool has been created for educational & academic purpose only.
Browse the definition and meaning of more similar terms. The Management Dictionary covers over 1800 business concepts from 5 categories.