Tips for Managing Your Company's Promotional Strategy

A deep discounting strategy, historically categorized as buy-one-get-one-free (BOGO) offers or dramatic markdowns of 30 percent or more, was originally popularized as a method to incent consumers to purchase a brand within highly competitive business sectors. It was a methodical marketing strategy to encourage trial and purchases, but also to induce consumer change.
Times have changed, however. In the age of online shopping and city-sized warehouse stores, brand loyalty is at a crossroads. Consumer preference is now increasingly driven through new experiences like product reviews, social media and other forms of communication that both allow and empower consumers to compare prices, products and services. Best quality and best pricing are musts for consumers in the decision-making process. As such, brands and retailers must take a long, hard look at their short-term discounting strategies.