Do you discount if a consumer ask for a discount? And if so by how much? And is there a difference between customers in terms of the discount strategy?
When you answer, please support your answer by scientific papers so I can read more on the topic.
In the West African context , retailers do a discount towards customers because the majority of people live in poverty or extreme poverty. Retailers do you it because they see that customers do not have the same standards of living.
In the West African context , retailers do a discount towards customers because the majority of people live in poverty or extreme poverty. Retailers do you it because they see that customers do not have the same standards of living.
Check...
https://www.vendhq.com/blog/how-to-discount-in-retail/
Most of the retailers have set a specific margin in selling its goods for giving a discount to their customer, like it doesn't affect retailer's price and customer get the discount as well.
There are different price strategies in retail, so you can adjust prices according to the special days and occasions. Like today, February 14, quite a few retailers give a discount of 14%. But it is impossible to give a discount just because consumer asks for it. If there is no special offer today it may come tomorrow but not by request.
The first step is yours. Business Strategy.
When the customer goes to a very competitive retail (for example Walmart), the price is there and he/she understands to take it or leave, but even when he/she is looking for a TV set or computer, there is some room to ask for discounts or payment terms.
The first read of this question is ‘how does the sales team react when a customer says “What discount are you giving me?” This situation demands that the establishment has a clear and consistent policy as to who is given a reduced price – and the extent of it. If this is not in place then the retailer could end up losing margin or sales. Margin as a result of everyone wanting a discount, and possibly sales as customers go elsewhere because other retailers are prepared to cut their prices.
But then there is the question of the use of discounts as a strategic weapon within a general retailer. The balance of my response to this aspect is based on personal experience working in major ad agencies that had retail clients and for leading producers of food products. You are right to start from the premise that there are different reactions from consumers depending on who they are. How an offer is made and its content influence their reactions.
Before you ask which strategy to use to discount retail products, you have to understand the situation. Which market segment do you want to influence? Is it the store or the product manufacturer who is driving the lower prices? You need to know: How many suppliers of the product are there in the market? What are the various brand positions? (Some producers will NEVER allow their products to be obviously discounted or made cheaper. e.g., Louis Vuitton) Are you looking for quick turnover? Are you trying to clear stock? Is the aim to increase market share / get people to try the product? Act against a competitor? Using the discounts for social responsibility? Do you want more feet in the store?
Simply put, you need to be clear about the marketing objectives for the discounting so this can guide the strategy, the implementation steps and advertising that you flight to make people aware of the opportunity. Also do the sums to check the impact on profitability.
Check out how effective were previous strategies. What impact do different levels of discount have on sales? Are special holidays or seasonality related to the success of a promotion?
It is a well-known fact that the way in which a discount statement is made, can have a big effect on a consumer’s response. (e.g. 50% off and ‘Two for the Price of One’ are essentially the same offer. The second offer should move more stock, but you need to test whether it is the stronger incentive to open your purse. See: https://bettermarketing.pub/should-you-offer-50-off-or-buy-one-get-one-free-e7fd8d17df37 ) The implication is that you should test offers before sending them out to the market.
If a retail chain has introduced a loyalty programme, then experimenting with different offers is very possible. You can work out the demographics of responders. You can pin-point geographic areas that provide the required lift in sales.
Vend identifies several types of retail sales promotion including: Percentage discounts / “xx dollars off” / Buy One Get One (BOGO) / Multi-buys / Multi-save and Conditional promotions / Free shipping / Try before you buy / Gift with purchase. (https://www.vendhq.com/blog/sales-promotion/)
The key is to understand the consumers’ needs and values. What is the role of the product in their lives? How do they react to the different offers … and then make sure the discounts are backed with suitable marketing strategies to make them aware of, and sufficiently interested in the offers to either go to the store or buy online.
ظروفك السوقية ووضعك الحالي في السوق هي من تحدد الاستراتيجية المناسبة للبيع
Technically, in that situation people usually give coupons to customers what will be more profitable for them when they purchase for a second time
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