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Create the opportunity for the marketer to up-sell a more profitable product.

Reward current customers - Customers are delighted when they receive the gift of savings from the manufacturer of a product that they buy regularly.

Build brand awareness - A consumer sees the brand name on the coupon even when the coupon is not redeemed.

Increase the number of new customers - A customer may try a product just because they have a coupon for it and like it enough to continue to buy it.

Coupon programs offer a host of benefits. If a company's competitors are doing it, the company will most likely consider doing it as well. Due to this fact, almost half of all retailers say that they use some type of coupon program. Coupons are an inexpensive form of marketing. Why would a company let consumers walk away paying less for their product than the displayed price? Peer pressure may be one reason. Marketers' Love / Hate Relationship with Coupons

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It is estimated that between 18 one in nine Americans had received a free Coca-Cola, altogether totaling 8,500,000 free drinks. The company gave soda fountains free syrup to cover the costs of the free drinks. By 1913, the company had redeemed 8.5 million tickets.Ĭoupons were mailed to potential customers and placed in magazines. The key to this growth was Candler's ingenious marketing, which included having sales representatives distribute complimentary coupons for Coca-Cola.Ĭoca-Cola Coupon: Believed to be the first coupon ever, this ticket for a free glass of Coca-Cola was first distributed in 1888 to help promote the drink. He transformed Coca-Cola from an insignificant tonic into a profitable business by using innovative advertising techniques. In 1887, the Coca-Cola Company was incorporated in Atlanta with Asa Candler as one of the partners. They walk away from the store with the satisfaction that they have saved money. They don't have to send anything to the manufacturer, they don't have to enter any type of contest. That means that consumers get an instant reduction on the price at the point of purchase. Coupons offer instantly redeemable savings on certain products. Why Consumers Love Coupons: It's in the DefinitionĪ coupon is a ticket or document that can be exchanged for a financial discount or rebate when purchasing a product. According to him, coupon redemption volume continued to show a marked increase in the first half of 2011. The NCH Vice President of Marketing backs up this figure. Their figures show that in the first half of 2011, consumers saved a whopping $2 billion though the use of coupons. for proof that coupons work for consumers. You don't have to look any further than the Promotion Marketing Association (PMA) Education Foundation, Inc. And consumers are following their advice. Article after article about saving money mentions using coupons. discount store: a type of department store which sells products at prices lower than those asked by traditional retail outletsĬoupons are hot and the state of the economy has much to do with their popularity.up-sell: Upselling (sometimes 'up-selling') is a sales technique whereby a seller induces the customer to purchase more expensive items, upgrades, or other add-ons in an attempt to make a more profitable sale.brand awareness: Brand awareness is the extent to which a brand is recognized by potential customers and is correctly associated with a particular product.An effective coupon program can be measured and entices consumers to use the coupons.

Coupons offer marketers both advantages and disadvantages.Coupons are an inexpensive form of marketing.Coupons gain popularity during tough economic times.