Marketing Management, 16th Edition

Managing Incentives

Incentives are sales promotion tools, mostly short-term, designed to stimulate quicker or greater purchase of particular products or services by consumers or the trade.46

Incentives as a Marketing Device

Sales promotion expenditure increased as a percentage of budget expenditure for a number of years, with the fastest-growing area being digital coupons and discounts, redeemed via smartphone or downloaded to a consumer’s printer. Digital coupons eliminate printing costs, reduce paper waste, are easily updatable, and have higher redemption rates. Many retailers are now offering customized coupons based on consumer purchase histories.47

Sales promotions can produce a high sales response in the short run but little permanent ...