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Why do companies give out free cosmetic samples?

Free Samples
Giving out free cosmetic samples is a popular method of advertising for many makeup companies. As a rule, consumers enjoy it when they receive something for free. This is especially true in a difficult economy as people are cutting back and trying to save money any way that they can. When a company decides to give away beauty and makeup samples as part of a promotional effort, they are likely going to receive positive feedback just because it is free. Additionally, a free product presents an interesting opportunity for companies as it is likely to draw in new customers. Some consumers will try the samples and come to realize that it is a satisfactory product and subsequently become a paying customer.
How do companies go about this?
Although the process may seem simple enough, there is a lot of planning that goes into these promotional offers. Once the company has decided that they are going to adopt this marketing strategy, there are many different aspects to consider. First, the company must decide the financial cost of the giveaway. After all, giving away samples is going to detract from the company’s overall profit. Deciding on a particular sum is important as it will present the opportunity to control the situation. Additionally, the parameters of the marketing strategy needs to be considered. Elements such as age, income, geographical location, and race will be collected in order to determine future advertising strategies as well as product development. Once the planning is complete, the company will then distribute the samples. There are many ways to do this including by mail, Internet, or actual brick and mortar stores.
Does it work?
Overall, it appears that giving away free cosmetic samples tends to be successful for the company. Statistics show that name recognition and visibility of a makeup company increases when an advertising strategy such as this is utilized. Name recognition can be a very powerful psychological tool for marketing as consumers in certain age groups tend to exhibit brand loyalty. Of course, this is all dependent on the quality of the sample. If the quality is poor then the consumer will just as strongly disassociate themselves from that particular brand http://www.flickr.com/photos/o5com/5081000707/

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