What is the impact of discounts and promotions on the behavior of consumers?
If you are in the consumer business, chances are you’ve already heard of consumer sales promotions. These are special pricing schemes on products. In the best interest of the company, the goal is to entice customers to buy your wares.
Some of the most common consumer sales promotions include contests, free samples, and sweepstakes. Contests are an excellent way to entice customers to buy your newest wares while giving you a little extra cash to boot. The winning entry is awarded a cash prize and a t-shirt or other prize item.
There are many online merchants offering free shipping. You can also find sites that offer rebates on selected items. Several of them even offer a free return shipping option.
A company should have a clear grasp of consumer behavior before committing to a promotional scheme. Getting a handle on consumer behavior is important not only in attracting new customers, but in retaining current ones as well. By analyzing the most popular purchases and behaviors of your customers, you can determine which sales promotions will generate the most profit for your company.
Consumer sales promotions also give your company a chance to showcase your knowledge of your customers. For example, if your company produces a product for children, you can promote the benefits of a healthy lifestyle to a younger audience by promoting free or low-cost snacks or lunches.
Another nifty marketing gizmo is the use of point of purchase displays. These can be as simple as a sign displaying a special discount or as elaborate as a wall-sized poster.