Understanding  Discounts

Are discounts really as simple as they sound? Absolutely not! They are a complex marketing strategy that have been used for centuries. What are discounts, you might ask? Let me break it down for you in a simple yet creative way!

Definition

Discounts are a marketing practice where businesses offer customers reduced prices on products or services. Discounts can take many forms such as sales, promotions, coupons, clearance and incentives.

6 Most Popular Questions about Discounts

1. Why do businesses offer discounts?

Businesses offer discounts as a way to attract new customers, retain existing ones, promote new products, increase sales volume and reduce inventory, among other reasons.

2. What types of discounts exist?

Discounts can be categorized into different types such as percentage discounts, volume discounts, seasonal discounts, loyalty rewards and bundling.

3. How do I find out about discounts?

You can find out about discounts through social media posts or by subscribing to a business's newsletter. Additionally, you can check websites like Groupon or RetailMeNot which provide discount codes for various businesses.

4. Can I combine discounts?

It depends on the business's policy. Some businesses allow the combining of various types of discounts while others restrict the use of multiple offers.

5. Are all discounts created equal?

No, different types of discounts have different benefits and drawbacks for both the business and consumer.

6. How do I know if a discount is worth it?

The value of a discount depends on your specific needs and budget. It is important to compare prices from different retailers or services to find the best deal.

Promotions, Coupons, Sales, Clearance and Incentives

Each type of discount has its own unique features:

• Promotions: This type of discount involves offering free gifts or bonuses with purchase.
• Coupons: These are vouchers or codes that can be redeemed for discounts on specific products or services.
• Sales: Sales offer a percentage or dollar amount off regular prices for a limited time.
• Clearance: This type of discount is used to reduce inventory by offering a significant reduction in price for discontinued items.
• Incentives: Offered to encourage specific behavior, such as referrals or repeat purchases.

References

1. Kotler, P. & Armstrong, G. (2010). Principles of Marketing. Prentice Hall.
2. Vrontis, D., Thrassou, A., & Lamprianou, I. (2009). Marketing Intelligence & Planning. Emerald Group Publishing Limited.
3. Hutt, M.D., & Speh, T.W. (2013). Business Marketing Management: B2B (11th Ed.). South-Western Cengage Learning.
4. Clow, K.E., & Baack, D.E. (2010). Integrated Advertising Promotion and Marketing Communications (4th Ed.). Pearson Prentice Hall.
5. Samuelson R.W., Marks S.G., Breach M.J., Baer R.A and Berman D.L.(2005) Managerial Economics - 4th Edition: Wiley Edition.

Discounts are a win-win for both businesses and consumers! Stay creative and always make sure you are getting the best deals out there!