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The Marketing Uses Of Coupons
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Posted On :
Apr-04-2011
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Article Word Count :
381
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Coupons can be used to encourage non-brand users to be regular customers. They help in persuading buyers to try out their brand since they do not have to risk too much money doing so.
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A coupon is a ticket or a slip that can be exchanged for a rebate or discount when purchasing a product. Normally, coupons function as a form of price reduction which allows retailers to offer a lower price on products they sell.
The use of coupons is one marketing strategy used by companies to research the price sensitivity of different groups of consumers. By sending out coupons of different values to different groups, they are able to find out the approach of the consumers to the price of the product they are selling. It is generally assumed that only the price sensitive consumers are the ones who collect and use coupons.
The use of coupons in marketing has many advantages; they can either bring new customers, or create loyalty among current customers. Coupons are frequently used as a marketing strategy in times of strong competitive pressure. When used offensively, they can steal other brands’ regular customers and make them their own.
Coupons can be used to encourage non-brand users to be regular customers. They help in persuading buyers to try out their brand since they do not have to risk too much money doing so. This way, once they tested that the brand they just tried is of better quality and is more effective than the brand they had been using, they will be regular customers starting that day.
As a defense mechanism in times of strong competition, manufacturers use coupons to maintain their current users. They use coupons to encourage current customers to keep on purchasing the brand, and keep them from trying out other competitive brands thus, building a stronger consumer-producer loyalty. In addition they also persuade the customers to make larger purchases and try out new forms, flavors or sizes of the established product they have been using.
Coupons are also effective in promotional sales since it effectively encourages customers to try out new products by reducing the risk of purchasing something that they have never tried before. Because of this they also help in speeding up the consumer’s acceptance in new products that are available in the market. If they liked the new product they tried, then they will be transformed from trial-buyers to regular customers.
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Article Source :
http://www.articleseen.com/Article_The Marketing Uses Of Coupons_58053.aspx
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Author Resource :
For public informative information about coupons, Visit this site to discover a lot more: http://www.couponnetwork.com/
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Keywords :
coupons, coupon,
Category :
Business
:
Marketing
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