Product demonstrations generally aim to increase sales for specific merchandise in a target market. Product demonstrations are a form of sales promotion that involves interactive sales presentations such as providing test samples and showing video presentations of a product. This marketing technique is used to introduce new products into retail markets, such as mass-merchandise outlets, by attracting prospective customers to demonstration booths.

Brand Positioning

In marketing, brand positioning aims to communicate to consumers the unique features of a particular product. Product demonstrations in retail outlets give producers an opportunity for direct communication with consumers about their product and its attributes and benefits. This helps merchandise stand out within competitive retail markets that increasingly include a retailers' own competing store brand.

Consumer Education

Prospective customers are able to closely inspect products during a product demonstration. For example, a grocer's flower department uses a product demonstration to illustrate floral arrangement techniques that can be examined. Printed information might be included in the demonstration to teach consumers how to properly handle fresh flowers. In this situation, the demonstrator takes on the role of teaching consumers how to use the products.

New Ideas for Old Favorites

Product demonstrations can give consumers new ideas about how to use products. For example, a food product can be prepared in an assortment of new recipes and featured in a product demonstration. Food samples are given to prospective customers as an incentive for them to try an old favorite in a new way. The demonstration might include distributing free recipe cards as a take-home "tutorial."

Take-Home Samples

Take-home samples are used in product demonstrations to encourage prospective customers to test new products. For example, plant food products that extend the life of fresh flowers might require special promotions to encourage consumers to try them. Sample packages can be distributed in an in-store demonstration as an incentive to prospective customers to test out the new products.