Why Managers need to Wake up to the Century of Declines and Scarcity
From the Era of Abundance to the Era of Scarcity The era of abundance is over and we are entering an era of scarcity. Right from oil and minerals to water and food, every resource that we have used to power and drive our civilization to modernity and progress is in decline. This means that […]
Psychological Factors affecting Consumer Behaviour
Consumer Behaviour deals with the study of buying behaviour of consumers. Let us understand the effect of psychological factors on consumer behaviour: Motivation Nancy went to a nearby restaurant and ordered pizza for herself. Why did Nancy buy pizza ? Answer – She was feeling hungry and wanted to eat something. In the above example, […]
4Ps of Marketing Explained for the Age of Market Fragmentation
The Transformation of Marketing from Scaling to Un-Scaling The Twentieth century was all about mass marketing and marketing to scale wherein marketers were sure that consumers could be broadly categorized into specific patterns according to demographic, income, class, race, gender, and other categories. This in turn, led to marketing theories that sought to explain how […]
Positioning and Differentiating the Market Offering Through Product Life Cycle
Today’s markets represent the surplus market, with a wide range of product available for sell. Consumer has huge product offering to choose from, for soap, there are more than dozen brands and each brand has at least 4 or 5 varieties. Companies have to work on strategies, which would differentiate their products from competitors. This […]
Theories of Consumption & Consumer Behaviour: Social, Economic, and Cultural Perspectives
We live in a consumer society where the ownership of goods and consumption of services pervades every aspect of our existence. Ever since the global economy began to be integrated and tightly interconnected, consumption of goods and services has been taken to new heights with an accent on owning goods from economic, symbolic and consumer […]
The sale of products to the customers from a fixed location (malls, department stores, super markets and so on) in small quantities for their end use is called as retailing.
Coupons play an important role in promoting the retail stores and making the brand popular amongst the masses.
Any document which can be presented to the retailer to gain some kind of financial benefit in the form of discount on any product is called a coupon. Customers can get the coupons redeemed at the specific retail outlets to avail relevant discounts and rebates in shopping.
The concept of promoting products and brands on an extremely low budget is called as Guerrilla Marketing. Guerrilla marketing does not involve huge investments and is one of the most effective ways of creating brand awareness amongst the consumers.
Coupons are an effective tool for Guerrilla Marketing. The retailers can actually create brand awareness amongst the end users without spending much with the help of coupons.
Example - As a part of their marketing strategy, on every purchase of Domino’s pizza, the company offers discount coupons to the buyers. These discount coupons can be availed next time the customer places his order.
In such a situation, it is more likely that he would visit a Domino’s Outlet again to redeem his coupons and avail the discounts on the pizza. He would generally not prefer any other outlet as here in Domino’s he can get pizza at a lesser price as compared to others.
Dominos in this case used food coupons to attract the customers once again into the store.
Any unplanned buying is called as Impulse Buying. An individual might not require a particular product but picks it up out of mere emotions and feelings. Such a buying is called impulse buying. Impulse buying prompts the customer to purchase products which he might not even need that time.
Peter went to a retail store to redeem his discount coupons on shirts. The retailer had smartly displayed perfumes near the cash counter. While paying the bill, Peter could not resist purchasing two perfumes for himself along with the shirts. An example of Impulse Buying.
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Challenges to the Retail Sector (As per Michael Porter s Five Forces Model)
February 12, 2025
