Everyone likes a deal. The Power of Deals in Marketing

Recently we asked "Do you use coupons or special offers in
your marketing?" The resounding answer was yes: 88% of survey
respondents said they do. The interpretation was that maybe
the economic times called for a way to bring in more people
and keep cash flowing. So this week we will talk about the
power of offering deals, and how they can be used as a
powerful marketing tool for your business in good times and
bad.

Everyone likes a deal, even the mega-rich. There are two
deal types that consumers respect and respond well to: work
& reward and one-time/blow-out. Work & reward
involves a reward for consumers doing some work where
consumers feel that what they are gaining is more valuable
than what they are giving up; if there is no give and take,
there is no perceived deal. A blow-out or one-time deal is
something that is drastically reduced in price with the
perception that the reduction is a once in a lifetime offer.

Examples of "real deals"

· - A "buy one get one free" requires the consumer to
buy something in order to get the deal

· - Save $100 off the normal price of a $500 item
because we need to reduce inventory or we made a great buy at
a drastically lower cost. Only 10 are available at this
price.

As the saying goes "If it sounds too good to be true...it
probably is." Consumers are skeptical, so when you want to
create a "real deal" follow this simple rule - Consumers know
you are trying to lure them in, so be straight forward about
it and either give them a reward for their efforts or a
price/discount that they can't pass up. As obvious as this
may sound, it is not practiced often. When it comes to deals,
quality is much better than quantity. One well advertised
"real deal" will produce more new sales and customers than
many so-so discounts that just dilute your regular offer.