MODEL ANSWER:
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 a 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 are just a way to influence the 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 a negative impact on company’s reputation.
A company or business that offers discounts on special occasions or to 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 a stronger relationship with its clients which increases people trust in the company. For example, I received a gift coupon for 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 it can also lower customer’s trust in the brand. Employing them strategically can prove hugely beneficial for the company. [367 words.]
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Now a day lots of big and small companies use marketing policy by offering sales and discounts on their product to increase the number of customers. Some school of thoughts gives stress on this point that these strategies destroy the organization reputation and have a bad impact on clients. This essay will discuss about the impact of such tactics on organization and why these are not good for companies.
The most of companies organized a lot of sales offer to their customer through out the year. It is a common perception that they usually put a discount only that products which are not good or have some type of defect. For example, the 50% discount on any leather shoe automatically create an idea in mind that definitely their will be any problem that’ why they decreased the price to sell that product. So such type of discount put a bad impression of the company.
Also the low price of any thing set a perception in the minds of people that these products are low quality that decrease the reputation of the company. Although, if these discount are only given on special days like Christmas, New Year and on special occasion e.g. birthdays and anniversaries etc. then these will be more effective to increase the customer relation with company.
This essay narrated about the how the various offers are bad impact on the company reputation and how we can make these strategies useful for the organization. In my opinion, it is true that such types of offers through out the year sharply decrease the image of companies rather than improve in front of clients.
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