Advantages and disadvantages of coupons and rebates
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- The Benefits and Risks of a Coupon Marketing Strategy | Retail Training Services?
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- Disadvantages and Advantages of Rebate Programs;
The Benefits and Risks of a Coupon Marketing Strategy Coupons and similar marketing tools can be an effective way to build your business. Benefits of Coupon Marketing 1 Increases Your Marketing Area — Coupons, if used properly, have the effect of expanding or increasing your market area as many customers will even travel significant distances to redeem a valuable coupon.
Now For the Downsides
Avoid the Risks of Using Coupons Using coupons to drive incremental business is an old trick, and many retailers are using it to build revenue. These include: In addition, coupons can be used to convince consumers to make purchases of new sizes, flavors, or forms of an established product. Other objectives served by issuing coupons include building retail distribution and support, moving out-of-balance inventories, targeting different markets, cushioning price increases, and enhancing other promotional efforts with coupon add-ons. Coupons are frequently used by manufacturers because of competitive pressure.
When used offensively against the competition, coupons are issued to get users of a competitive product to try a new brand. When used defensively, manufacturers provide coupons to current users to keep them from purchasing a competing brand.
Because of its targeted distribution, coupons sent by direct mail historically offer higher redemption rates than coupons distributed by print media. Freestanding inserts FSIs in newspapers, which accounted for the vast majority of all coupon distribution throughout the s, are generally regarded as more effective than other coupon distribution methods. Perhaps the most popular coupon distribution method for small businesses, however, is the coupon mailer.
This is a strategy wherein a group of retail businesses in a community send out a mailing of individual coupons together; consumers within the community thus receive a variety of coupons for area businesses in one envelope. Sometimes the mailing will consist of an actual booklet of coupons for participating businesses, but most are sent out in loose-leaf fashion.
Many business communities house businesses that specialize in putting such coupon mailers together.
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These companies charge a fee for their production and distribution services. May Fields, Laura. One use is to encourage consumers to try new products; coupons have historically been fairly efficient at getting consumers to try new products by reducing the risk of trying something new.
Coupons are also issued to convert trial users into regular customers, such as when a product sample includes a cents-off coupon.
The Benefits and Risks of a Coupon Marketing Strategy
In addition, coupons can be used to convince consumers to make purchases of new sizes, flavors, or forms of an established product. Other objectives served by issuing coupons include building retail distribution and support, moving out-of-balance inventories, targeting different markets, cushioning price increases, and enhancing other promotional efforts with coupon add-ons.
Coupons are frequently used by manufacturers because of competitive pressure. When used offensively against the competition, coupons are issued to get users of a competitive product to try a new brand.
Coupons will drive customers to your business. In today's world, 96% of consumers have used a coupon in the past 90 days. JC Penney tried to. Coupons are certificates that provide consumers with discounts on goods or services ADVANTAGES AND DISADVANTAGES Like other sales promotion tools.
When used defensively, manufacturers provide coupons to current users to keep them from purchasing a competing brand. There are several ways in which small businesses can distribute coupons, including direct mail, in-store or central location, by electronic mail, print media, in-pack and on-pack, and through retailer advertising.
BIBLIOGRAPHY
Because of its targeted distribution, coupons sent by direct mail historically offer higher redemption rates than coupons distributed by print media. Freestanding inserts FSIs in newspapers, which accounted for the vast majority of all coupon distribution throughout the s, are generally regarded as more effective than other coupon distribution methods. Perhaps the most popular coupon distribution method for small businesses is the coupon mailer. This is a strategy wherein a group of retail businesses in a community send out a mailing of individual coupons together; consumers within the community thus receive a variety of coupons for area businesses in one envelope.
You know which products are profitable to you and which are not. Coupons will drive customers to your business. Rebate promotions can thus help a company increase its leverage with retailers and develop brand loyalty and repeat business among consumers over the long run. Fields, Laura. Share and Enjoy:
Sometimes the mailing will consist of an actual booklet of coupons for participating businesses, but most are sent out in loose-leaf fashion. Many business communities house businesses that specialize in putting such coupon mailers together. These companies charge a fee for their production and distribution services.
