Various marketing strategies have to be utilized in order
to augment the profits of a business. These marketing strategies depend largely
on the customer base and the goods and services sold. Many businesses consider
offering discounts a superior way to amplify sales. Offering discounts to
customers, in a business, can either be positive or negative in terms of
company’s affluent status.
However it will boost company’s sale and popularity
albeit at a cost of less benefit, but it may bring downfall in company’s
reputation as they buyers may doubt at quality of products and can create a
negative perception in their minds. Apart from this, it will elude customers to
neglect items at market value and they will always demand discounts causing
further degradation in company.
At the highest level, discounting makes
sense from a marketing and sales perspective, especially when companies are in
a slump and they wish to attract a slew of new customers to save their economy.
It will decline customer’s trust on company and can it even lose old regular
customers who bought same items on market value before the company announced a
discount.
It is not an easy task deciding if offering discounts in
a business is good choice or a bad one. However, a business needs to consider
these factors closely in order to run it successfully and profitably. Discounts
can be offered on certain days once a year on certain selected items just to
replenish the stock.
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