Sales Promotion Decision Making

CHAPTER 4

Monetary Promotions

Introduction

In this chapter, we explore the world of monetary promotions. In their attempts to attract consumers, many businesses offer incentives in the form of in-store price cuts that aim to both reinforce the value credentials of the company and provide the opportunity to make a saving. Monetary promotions take many forms. As well as price discounting, coupons that are made available through a variety of channels are a very popular tactic. Rebates, where consumers can claim back money post-purchase, are complex but commonplace in certain categories. Using these forms of promotions effectively demands an intrinsic understanding of their characteristics, strengths, and weaknesses. This is increasingly vital as ...