Life as Seen Through a Marketer's Eyes

I love marketing, just ask my husband, who listens to me analyze every piece of marketing we are exposed. Here's some of the the random things I think about.

Monday, November 27, 2006

I just read something interesting about marketing. I found an article that talks about the danger of discount pricing through consumer promotions. I never really thought about the dangers. The article explained that discounts and promtions provide immediate increased sales, but they also teach your customers to be price sensitive and buy based only on prices. This means that your customers are not loyal. As soon as a competitor offers a lower price, consumers will switch brands. So maybe it is better to use more traditional advertising to develop a valuable brand image so that consumers care less about your price and more about buying your product and only your product. Interesting...

1 Comments:

Blogger Unknown said...

Where did you find that article I would like to read it? Were there any comments about the differences about the posistion of a brand, whether premium or discount, and the effects of a promotional discount?

2:58 PM  

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