Gift-with-purchase is a promotional tool used by marketing and brand managers to promote sales.
This is strategy entices a customer to purchase your product/services and gives your promotion and added value.
Here is a video done by the ODM Group on gift-with-purchase.
Gifts-with-purchase are especially great when you have an additional budget for your campaign.
Sales promotion strategies like gifts-with-purchase are also great to encourage trial of a new product.
Check out how Rockstar Games made their custom gift pack for launching their new video game : Grand Theft Auto IV.
As you can see, Rockstar Games leverage on gifts-with-purchase to entice customers to try out their game and also personalize their brand onto it. That way, when customers use they merchandise, they can increase their brand recognition among the masses.
Another Gift-with-purchase terminology that you should be familiar with if you're a brand manager is on-pack promotions.
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