The consumers are provided discounts on services or goods when offers are provided to them by manufacturers or retailers. These codes are offered by the manufacturers and for promoting their goods to achieve better sales and the market goals. Being very effective, these are quite popular with smaller business owners. The codes are FREE and provide customers immediate relief, saving and value. But recently these coupons have been flooded in the market which is known as “coupon clutter”. As a buyer it is important to be smart to be able to differentiate between a fake and genuine sale.
Advantages and Disadvantages:
As in the case of other tools of sales promotion, coupons too have advantages and their disadvantages. Unlike trade allowances provided by producers to retailers, the Flipkart discount coupons offer advantage of passing of savings to the consumer directly. Consumers take the code as a special offer and not as reduction in cost. Thus if these offers are withdrawn or are not available, it does not affect sales adversely. Added traffic is created by offers for retailers who may double or triple value of coupons of manufacturers at own cost for creating more store traffic. Normally manufacturers provide additional compensation to retailers for handling their discount sales.
The codes might be issued for serving various strategic marketing objectives. One option is to make use of Snapdeal coupon codes to encourage customers in trying new items. It also helps in converting the trial users to the regular users particularly when this product is available cheaper. It is also utilized for convincing the consumers to go in for new flavours, sizes or forms of another established item.
The other objectives served by coupons are cushioning price increase, moving out-of-balance inventories, providing retail support and distribution, targeting various markets and improving promotional efforts with other coupon add-ons. Manufacturers also use coupons frequently due to competitive pressure and publicize their offers on www.CouponMama.co.in. These are also used to make users of competitive product to go for new brand. It is also used to prevent existing users from buying a competing brand.
The critics of sales promotions by coupons are of the view that its effectiveness has been reduced to great extent because of the clutter. They are not certain whether these really increase business from the new users and believe that increase in offers has resulted in higher redemption rate of coupons. Excessive distribution of coupons increases chances of mis-redemption and fraud. They believe that coupons are issued for the brands already established and are mainly redeemed by the loyal users who in any case would purchase the item even without a coupon.
Small businesses might distribute coupons by means of direct mail, print media, on online advertising on sites like CouponMama. The offers that are sent using direct mail provide higher rates of redemption compared to those that are distributed by the print media but coupon mailer is most popular method of coupon distribution by small businesses.