A common marketing strategy for big companies is to introduce various offers and discounts. However, these strategies may have impact on their reputation. What are some of the impacts? Support your point of view with details from your own experiences.
Complete the topic within 20 minutes. Write a 300 word essay.
Running a sale or offering discounts is great for companies who are looking for cash and improvement in liquidity but some people believe that this marketing strategy can have negative impact on their reputation. I am of the opinion that offers, discounts, vouchers etc stimulates product sales and impact reputation in both positive and negative ways.
As some people believe that offering discounts can cause people question the authenticity of the product. Studies have shown that people often perceive that the products selling at discounted prices are not of good quality and cutting its cost is just a way to influence customer. For example: the cost of original leather is much higher than the fake leather so if a leather boot is selling at 40% discount than it makes the customer think that the product is not original or is of sub-standard quality. So this marketing strategy can have negative impact on company’s reputation.
A company or business that offers discounts on special occasions or to a certain groups like defense personnel can even improve its reputation. These type of strategies shows that the company is making effort to recognize their hard work which in turn improve their reputation. Furthermore giving special offers on customer’s special days like birthday or marriage anniversary shows that the brand is making an effort to build stronger relationship with its clients which increases people trust in the company. For example: I received a gift coupon of 20% discount from Gucci on my birthday which made me shop more from the brand.
Many people regard businesses as money-hungry, so cost cutting for a limited period cause people to buy the product who otherwise may not buy the same product and instead prefer the competitor product because of variation in price. So to make new clients while retaining the faith of old clients, this time bound strategy can do wonder. Any deviation from the ‘money-hungry’ for the business can improve reputation.
At the end I am of the view that this type of marketing strategy can boost sales and revenue but using them the whole year can lower customer’s trust in the brand. Employing them strategically can prove huge beneficial for the company. [367 words.]
To Stay Connected, like Us On Facebook.