Click here to go to Win A Day Casino Mobile!

5 Killer Tips for Your Discount Marketing Strategy

As bloggers we hear quite a bit about marketing strategies, largely because most bloggers have something to market, if not their blog then it’s a product, an affiliate or even a service. As you would know there are many ways that people may use to get their product or service where it can be seen by others in the hope that they will eventually become customers.

Just the other day I was approached by a charming Aussie lass who asked if I would kindly help to promote her very unique marketing strategy. Seeing as how I’m not one to turn a pretty lady down I surprised myself by saying I would but only after I had a look at what she was offering. She kindly pointed me in the right direction and after giving it the once over I decided that I would succumb to her charms, and it’s to this end that I offer you, what I believe to be a very interesting sponsored post.

Are you considering using discount marketing as part of your business’s advertising strategy?

You must ensure that this form of promotional marketing is appropriate for your business’s brand image. It is also vital to plan whether your business can withstand the costs of this venture.

Any business considering a discount marketing strategy should take these tips into account.

1. Market a discount as another form of advertising.

Consider what incentive will work best for your particular consumer base: discount coupons, contests or free samples. Choose an advertising vehicle like direct mail, email or in-store that will not exceed your promotional budget.

2. Offer only what your business can afford.

Determine your reason for promotion and consider if you planning to discount an item as a loss leader to gain a larger consumer base. Ensure that you set your budget early on.

3. Set the target market.

By knowing exactly who your customers are, you can maintain control by offering an appropriate discount. You must know where and when your consumers will use your discount.

4. Ensure that all ground staff are aware of the discount!

Consumers will have an extremely negative experience if your staff doesn’t know what’s going on. This will turn them off your business. Ensure that staff also knows about the exact terms of expiry for your discount.

5. Keep testing!

Set specific goals and keep track of the feedback you are getting from your discount. If it is unsatisfactory, the discount is either not attractive enough or it is improperly targeting the consumer base.

“To learn more about local business marketing to sign up to Myzerr.com and start promoting your business online today!”

Digiprove sealCopyright secured by Digiprove © 2010
Previous Post

Teaching People The Proper Way To Comment

Most people probably don't realize this but there was a time when I was studying ... Read more

Next Post

What You Post Could Cause Google To Disable Your Account!

How many of you have actually read Google's TOS? Did you know that they could ... Read more

Please follow and like:
3
2
Follow Me
Tweet
LINKEDIN

Peter Pelliccia

I'm an Aussie blogger who loves to blog and share everything that I've learned on my blogging journey, including blogging tips and ways to blog for money. I am also trying to make my way on YouTube. You can follow my progress by subscribing to My Bonzer Channel.

This Post Has 49 Comments

  1. Just got my new laptop. So good to be blogging on a keyboard I am familiar with although I did appreciate the loan of a friend’s when mine crashed!
    On a small biz management course I recently attended one of the things the successful biz owners taught us was to NEVER discount! Offer gifts, something extra but don’t discount. This is an enterely different concept to the one I have encountered.
    You are right in pointing out you have to look at your overall picture as if you discount and make a loss you will soon be out of business! Will be interested to see how this one goes.
    Patricia Perth Autralia

    1. Actually Patricia, I’ve been involved in retail for quite a few years and one thing I have learned is that it’s not unusual for them to offer discounts on certain items, even if it means selling them at a loss, just so they get customers into their stores. This is because they know the majority of customers will buy more than just whats on special and that’s where they hope to cash in.

      Oh, in case you’re wondering I used to work for Coles many years ago and actually got to management level. I then decided I would be better off working for myself and so I left.
      Sire recently posted…Teaching People The Proper Way To CommentMy Profile

      1. I guess it works for big stores. For me just starting out with my small blog I was thinking of doing small gifts if spend over certain amount. You obviously know a lot more than me about retail as before I started blogging I was a nurse for 30 years. Just found it interesting that what I was taught on my course was a different view. Will have to see how things go once I monetize my blog eh.
        Patricia Perth Australia

        1. Definitely for big stores. I doubt very much it would work for your corner Deli.

          It would be different for your blog Patricia. You would want to make sure that you make some profit on whatever you sold. That’s the good thing about finding the right products as an affiliate, they handle all the hard work, all you have to do is make the sale.

  2. Uhm, actually I think we both have the same weakness, I as well can’t resist favors from pretty ladies, LOL. Anyway, It’s also a great idea to give freebies as “bonus”, like your own product, when selling through Affiliate marketing. And as proof of the sale, you can instruct your readers to show you first a copy of the receipt before they can get your free “valuable” product. Well, that’s what I’m actually planning at the moment :)

    Regards,
    Jason

    1. Not a bad idea at all Jason. Giving them a ‘free’ product as an incentive for purchasing an affiliate product could secure the sale as well as getting your brand out, as long as the ‘free’ product is something that you put together, such as an eBook for example.

      You must let us know how it all works out for you.

  3. disounting maybe our last resort to promos but as business people, we still have to consider giving these things because admit it or not, price is all that mainly matters for our costumers.

  4. Sire, your catchy title bring me from a friend’s blog!

    I love the discount marketing strategy idea, I must say that I am following it now for one of my new projects that will be launched soon!

    I see most of marketer or products owners plan their marketing strategy starting from a low price (under name of discount), then increase price after discount ends! this allow them to hit the market twice with their product!

    E.G. if discount is offered for one month, then the do more sales on the first week and again at the last week while discount still valid! I like this idea because affiliates will have the chance to promote more the product twice with out boring their blog readers (in case they promote through a blog)!

    I have been targeting my market and getting connections since I started working on the project, wish me good luck!

    Thank you for the good read!

    1. Hey Hesham, all the best of luck mate with your venture, and I wish I could take credit for the title but that was the brain child of the person who put the post together.
      Sire recently posted…How To Save Time Replying To CommentsMy Profile


  5. Twitter:
    I hadn’t realized that discounting had ever been frowned upon. However, there are rules for it, as you’ve written above. I’ve had to work with one of my friends to stop discounting her services immediately after offering them because it made her look like she didn’t value herself as a professional. Once she stopped doing that, she started getting more work. Not sure why that seemed to work, but it does. However, she also has the option of offering a Chamber member discount, which she does, but that’s only 10% as to the 50% she kept giving away.

    1. Reckon there are rules for everything these days Mitch, and usually if you follow the rules things tend to work out.

      Naturally if you only had one product you wouldn’t want to offer it at a discount where you weren’t making any money. That is of course unless you wanted to start a list or something, but let’s not go there.


      1. Twitter:
        You’re talking products, I’m talking services. Discounting services immediately makes it look like you have no faith in yourself.

        1. Now discounting services is something else entirely and it’s not something that I would do lightly.

  6. Discount Marketing Strategy should be good for the business which has large profit room. Every week, I get flyers with discount information of different stores. Sometime, the only reason I go to shopping a store is that it has something on sale.
    Peter recently posted…SQL INMy Profile

    1. Yep, that’s how they get you in the door Peter, and once in the door most people purchase more than just the discounted product and that’s where they make their money.
      Sire recently posted…Teaching People The Proper Way To CommentMy Profile

  7. I owned 3 clothes shops before and I found the best marketing strategy to get new clients and keep the old clients was a combination of always have high discount of some products and give a gift cheque of XX euros with a time limit on, when they bought for more that XX euros so they always come bake for using the gift cheque.

  8. Without a shadow of doubt this Discount Marketing Strategy is helpful. Of course we can’t deny the fact everybody has a unique perceptive on their respective domain when it comes their market strategy. But as for me this kind of strategy is worth trying.

  9. The part I am struggling with is that if for example you are online marketing and therefore promoting other peoples products how would you be in a position to negotiate a discount?

    A lot of marketers nowdays give other incentives such as free coaching or a mailing to their list but I have never seen the type of activity you describe in action.

    Regards

    Pete

    1. That’s a good point Peter. Obviously this sort of ploy wouldn’t work when promoting your affiliates products. Then again, depending on what you were offering, it could be used as a way to get traffic. Say for example you were giving away a free eBook that naturally had links to your site.
      Sire recently posted…The Importance Of Using Professionals For Your Printing NeedsMy Profile

  10. Once your website is ready, then you need to promote using the various social media platforms like Facebook, Twitter and social bookmarking sites. Post good content to your fan page regularly so that people will be engaged with your shop’s events and offerings. Adding Twitter to the mix is a good idea and make sure you’re following people who are part of your industry.Email marketing is an important part of your online promotion strategy. You should establish a regular schedule where you send out useful and valuable content in the form of a newsletter to your list as well as incentives to get them to come back to your site.

  11. Discount marketing seems good if you have a lot of products and few diferent categories and you offer few from each category at the lower price. You can get returning buyers that way.

    1. Yep, major stores do that just to get heads in the door.

  12. Consumers look for an offer that is appealing and has value, and they may respond immediately. But with big ticket, high commitment items, they are likely to take more time to consider the offer and wait until they need to make the purchase.

    1. I’ve usually found with big ticket items people are more likely to shop around. The trick once they walk in the door is to captivate their attention and seal the deal. getting them in the door is what marketing is for.

  13. Owning and operating a business and actually having it survive in today’s economy is challenging. Every dollar you spend needs to give you maximum return. This is where the benefits of marketing strategy come into play. Is it expensive to market your business? Well yes and no. I guess that would depend on what you think is worth investing to promote your product or services and what type of marketing you chose to implement.

    1. It also depends on the type of business you have. I had a convenience store one and I never once advertised it. I relied on word of mouth advertising which worked extremely well as long as I provided exceptional service.

  14. One big problem with offering discounts is that it communicates that “really” the product/service is only worth that much and that the companies were overcharging previously. Then again, in tough times, if someone wants me to buy something unnecessary, they’re going to have to offer a substantial discount to secure my purchase.

    1. Sure that may be the case sometimes Brent but may not be true for all discounted products.

  15. Hi Sire,

    While I know that there is a whole discount marketing industry I don’t think that I would want to participate in discount marketing unless it would be on a mass scale and for a good quality consumer product for a limited time to get rid of old inventory or similar reason.

    Unfortunately it seems that all kinds of businesses seem to think that the only way to compete is to provide the lowest price. This attitude eventually hurts both the the sellers and the customers.

    Eventually nobody makes any money and the quality of the product or service goes down.
    This can force many out of business and result in unhappy customers.

    While your post provides some good points to check on first before plunging into discount marketing, I won’t be doing that anytime soon.

    Vance
    Vance recently posted…Top 10 Traffic Sending Blogs aka Sally’s Secret Traffic BlogsMy Profile

    1. Hi Vance. If you provide a good service then I would suggest not to offer discount as this belittles the service you’re offering.

      If on the other you were offering discount on a product that had a good margin, I see nothing wrong with that especially if you were able to sell add on items at full cost.

  16. Offering discounts is an edgy topic.Depending upon the type of customers you can decide on that.Say you are a car dealer you can offer discount on the car,so the client will trust you and come to you for other car accessories in the future so by this way you get a recurring customer by offering an initial discount.

    1. Funny you should mention car dealers, I’ve always felt that they jack up the price just so they can offer some discount.

      1. Hi sire
        Yep,car dealers and designer clothes are the most notorious ones in this regard.They jack up prices by 60% and offer 35% discounts or such :-)

  17. The level of discounting to get traffic and sales back in is also of importance, and for those brands that have not been successful in correlating value to price will have to discount deeper.

    1. Actually discounting can be an art form and you need to try different things to see what works. Getting it right means you may get the optimum results.

  18. I run a small cafe and I’ve been advised not to give discounts too. I think it’s because people perceive your products to be of lower value than they are once you give a discount and then they view you differently after that. In my experience, it’s better to give freebies and bonuses. Not only is it relatively cheaper to do so, it also makes people happier!

    1. Freebies over discounts? OK, if you say so.

      Personally I’ve found that running discounts on days, or times, of lower patronage can increase turnover.

  19. Your Unique Selling Proposition sets you out from the rest, don’t try to develop a marketing plan without one.It’s important that you have a budget developed for your marketing plan. Marketing is an investment.Business owners often rely solely on their intuition to make business decisions. While this informal knowledge is important in the decision making process, it may not provide you with all the facts you need to achieve marketing results.

    1. It’s also a good idea to try a develop a marketing plan that will make more for you in profits than it actually costs.

  20. This one is a must for all businesses out there.

    Offer only what your business can afford.

    Some people or business entity tends to promise all good things to their buyers or customers, but at the end of the day, they end up with broken promises.

    1. That’s a great tip Ron.

  21. One of my clients offers discount vouchers to existing customers and it works well (10% discount), although it doesn’t seem to bring in much new customers when we try and advertise it so I need to look at improving the discount marketing.

    1. Maybe it’s not finding the right targets?

  22. Great tips. I found your post very helpful to people who are just starting a new business, like my self. I’m about to open a software developer company. Your tips would help me a lot. Thanks.

  23. Great tips.

    2. Offer only what your business can afford.

    So true. If you don’t know your numbers, you can even end up in trouble.

Comments are closed.