What does the phrase ‘Pay as you go’ mean? Then what is a ‘contract phone’? Although the terms may seem confusing but the meaning is very simple. The former phrase refers to phones which help you to keep a track of your spendings and the latter refers to phones which come with monthly bills. When a person buys a phone he normally gets a gift. These gifts may be T-Shirts, pen in the case of pay as you go phones and Laptops and CD’s in the case of contract phones. Hence these free gifts with mobile phones are varied in number and types. However, whatever be the gift, the feeling of getting it is always fantastic.

The gifts that come with pay as you go phones are of many types and forms. Some handsets come with free mobile phone themes while others offer wallpapers, games and also snazzy T-Shirts. There are also some brands which come with marvelous mobile skins and covers. A couple of them give mobile holders too. These gifts are though simple in magnitude play a very significant role when it comes to marketing factors. Any brand sells when people start liking it and express their desire to possess it. The brand image thus rests on the psychology of a human being. Since ages, it has been a known fact that gifts carry many positive aspects and vibes. There have been gifts which have led to peace in times of war and there have been gifts which have been the catalyst for a major turnaround in fortunes. Hence for any smart individual, it will be quite easy to sell a product by giving some of those items as gifts which the buyer will not get free when buying the phone but will have the desire to posses it. Hence all those gifts which come with pay as you go mobile phones have a laid out motive for their induction. The target market for pay as you go phones is mainly the low and the middle income group and they know their limitations. Hence they hope for gifts which are possible to have with these pay as you go mobile phones. Hence all those free gifts with mobile phones in the pay as you go genre will be successful to get more revenue by selling the phones with the gifts which the user will want to have.

The scenario with contract mobile phones is absolutely different. The target market for these handsets are mainly the higher income groups who do not have any problem with paying a monthly bill. They are thus those kind of people who have money to spend. When the same logic gets applied the promotional strategy for these contract phones is absolutely different. Gifts that this income group will expect will not be themes or wallpapers but mostly those with which they can utilise their time and money. Hence laptops, televisions and iPods fall under this category. The free gifts with mobile phones of the contract type are thus expensive items and cost a lot of money to buy. Hence the proper marketing tools for selling this product will be gifts like 27 inch LCD TV’s and gadgets like SAT NAV”s made by TomTom and Garmin. The target customers being rich would like to get fancy and expensive gifts and therefore all those brands will have a high sales revenue which give gifts like the SAT NAV.

The free gifts with mobile phones are thus different in terms of price factors and their respective niche markets. Gifts like TVs are available by many brands like LG and Toshiba and they have their respective target markets. The fun is when people get these kind of gifts free without spending a penny, they get elated and further when they get these gifts by buying contract phones which are far cheaper than the gifts that they receive.