What are the advantages and disadvantages of discount promotion

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in many promotions, discount promotions are the most common, directly to consumers, can get the fastest return. However, there are also some drawbacks. In general, clothing discount promotion often is a double-edged sword, use of good for the enterprise to create interest and visibility, improve sales force; do not grasp, often easy to put products into discount after sales difficult dilemma.

Advantages of

discount promotions

1. effect is obvious. Prices tend to be one of the major determinants of consumer choice, especially for those with high brand awareness. Therefore, the discount is the biggest impact on consumers, but also the most effective promotional methods. Because of the discount promotion effect is obvious, manufacturers often use this as the emergency response to the market against rival product promotion activities, products or processing due season products, reduce inventory, accelerate the return of funds, with business promotion, one of the emergency measures is sometimes to finish sales target.

2. activity easy operation. According to the different regions and different time, the manufacturer can design different discount rate in the range of the budget. This kind of promotion method has less workload, cost and risk.

3. the simplest and most effective means of competition. In order to resist competition brand product sales growth, in order to resist the rival listing of new products or new policies, timely use of discount to stimulate consumers to buy the product, reduce customer interest in competing products, and through the promotion of a large number of consumers to buy or buy in advance, to seize market share, against competitors.

4. is conducive to the cultivation and retention of existing consumer groups. Direct discount activities can produce a certain advertising effect, create high-quality products at low prices to attract consumers to use the product has been repeated purchase, the formation of a stable existing consumer groups.

Limitations of

discount promotions

1. blindly discount can not solve the fundamental problem. Although the short-term discount promotion can increase product sales and improve market share, but can not solve the fundamental problem of the manufacturers sales, but manufacturers will mislead the correct understanding of the market, is not conducive to the adjustment of product structure. In this way, the sales manager will be obsessed with the illusion of the current sales, do not think about ways to solve the problem, or even rely on this promotion.

2. loss of profits is difficult to compensate for losses. Discount sales promotion in the scope of the implementation of the profit rate is good, if the manufacturers compete with each other due to the uncontrolled discount will make the sale of the enterprise more and more deep, resulting in loss of discount is difficult to clean up.

3. often discount will damage the product and brand. Consumers tend to think of a constant discount

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