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Topic : New Pastures For Marketers - 2011
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Marketing & Branding

 

Discount factor is give positive or negative effect in retail industry

Created by : Virag Shah, Confidential  | 01 22 2011 05:25:08 +0000
Industry : Advertising/PR/MR/EventsFunctional Area : Pricing(Sales & Marketing)
Keywords : discount sales promotion promotional discount flat discount
Activity:  576 views;  last activity : 02 09 2011 17:53:39 +0000

In retail industry segment like Apparel and garment segment, Jewellery segment, mall, hand watch, wellness- fitness centre, hotel, resort-spa segment, beauty parlour, footwear,consumer durable, electronics, IT- computer etc.. they (All branded items) are giveing flat discount or other discount either during the season, off season or 365 day (Promart is giving 365 day discount strategy). So, all of these brand are give positive or negative effect in mind of consumer. Competition is becoming tough, discounting strategy is good up to some extent level.

 
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Discount factor is as positive Vs Discount factor is as negative
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Giving discount doesn't mean the product/service has any flaw or it not upto the mark, its just a strategy used by companies to boost its sales by provoking customer to buy within a stipulated time frame.
By Rahul Pandey, Branch Manager/Regional Manager, CoCubes.com  02 02 2011 14:28:30 +0000
 
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There are low end, medium end and high end products are there in the market with different price tags. Each product group are having their own customers base. Here there is definitely quality/service difference for products, since there is no monopoly for a particular brand/product due to competition emerging from various brands/products having similar nature & usage/application, hence the price & discount plays the dominant role. Sometimes even the high end products are forced to match the prices with other end products. Ultimately who is benefited... the end users or the customers base from different segment who may be the buyers of low end, middle end and high end products.
By NATTERAJA R. ARIKRISHNAN, GM-Projects, Bentec Electricals & Electronics Pvt. Ltd  | 02 09 2011 17:53:38 +0000
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we Indians really run toward the discount stores.We have live example of Bigbazaar.
By pradhnya meshram, Sales Executive/Officer, Tata Communications Ltd  | 02 08 2011 16:56:47 +0000
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Discount factor is positive if you are using it to deplete your ageing stocks but becomes negative if you use it frequently. Frequent use reduces the image of the product and also affects the bottomline.
By Jaygopal Raghavan, Marketing Manager, Landmark Group  | 02 08 2011 12:50:09 +0000
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it really works, it attracts the buyer............
By HEMANT VERMA, Marketing and Branding, NAVNEET PUBLICATION INDIA LTD.  | 02 04 2011 14:49:00 +0000
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Discount is Very Good In Retail Marketes. Discount Factor is poosible . if we are giving Discount factor it will useful to selling the retail Market itemes.
By T.Nagaraju , Logistics Executive  | 01 31 2011 09:33:56 +0000
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Rightly said by Mr. S.Baalu it stimulates the consumers to buy in a specified time also to be added in greater numbers. People should understand that discounts are to clear stock as it gets expiry.
By Ajay Mishra, Owner at MBAnetbook.co.in and inSAP.in  | 01 25 2011 19:15:56 +0000
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Rightly said by Mr. S.Baalu it stimulates the consumers to buy in a specified time also to be added in greater numbers. People should understand that discounts are to clear stock as it gets expiry.
By Ajay Mishra, Owner at MBAnetbook.co.in and inSAP.in  | 01 25 2011 19:13:57 +0000
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discount are good for customers as well as the company, it is best and easiest brand promoting strategy, where customer get some value benefits and company get the visibility and numbers, and  there is nothing called beyond the limit discount in market,no such retailer or company gives offers which will make negative impact on there margins


By karthikrathnam , Branch manager,  | 01 25 2011 12:52:15 +0000
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It stimulates the consumers to buy in a specified time span and the consumer prepones or increases the purchase quantity to utilise the benefit.
By s.baalu , Consultant, XYZ LTD  | 01 25 2011 11:59:35 +0000
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Natteraja I agree with your point of view.
By Rathin Deb, Freelance Retail Consultant  | 01 25 2011 10:31:10 +0000
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Discount downplays Quality! Discounts force suspicion! However, discount generates volume sales too!
By S. Muralidharan, Executive Director, Knowledge Foundation & Campus Around the Corner  | 01 23 2011 16:09:29 +0000
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This is just a mechanism to purchase today what we strictly do not need today but may be day after tomorrow. Because od discounts, no one will purchase anything that he does not need or is not in his priority list. If it is there, and there is a discount available, item may be purchased today instead of 2-3 weeks from now
By V. Srinivas, Freelancer, Information Technology  | 01 23 2011 15:35:52 +0000
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it gives positive aspect to the retail industry as consumers willing to purchase more at this amount of time.rather than when discount is off.....
By Abhishek Pandey, B.Ed student, BRCM CET  | 01 23 2011 10:26:50 +0000
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Of course beyond the limit the discount factor becomes giving negative impact Mr.Virag Shah. But, by and large the discount factor plays the dominant role in markets of different segment with a view to attract the consumers to sell more. Moreover today is buyers market and hence the influencing discount factor becomes more import in selling as it is being compared with the competitors products.And this way the consumers are benefited. However, I could not support the sales offers declaring " if you buy one or two and one will be free" This types of offers can not, in fact, give any benefits to the buyers because nothing can be bought free of cost in this world. These are all marketing gimmicks/tactics.

Further the consumers are also more conscious about the cost they spend and expect value for their money spent. 


By NATTERAJA R. ARIKRISHNAN, GM-Projects, Bentec Electricals & Electronics Pvt. Ltd  | 01 23 2011 07:30:04 +0000
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it is negative because by giving suchtype of discou nt you know customer want more and by this they always think that they will get discount in every product but we can't ignore that due to competition in the market so my point of view its negative
By neeraj dixit, MBA/PGDM student, business school of delhi  | 02 02 2011 18:56:58 +0000
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Beyond the limit, discounting factor is giving negative effect, Today, majority retail brand each and every segment is giving like flat discount upto 50%,80% , discount 10% on purchase of Rs.500,Rs1000 during the season, off season. No doubt discount will give benefit to consumers and consimers are also became price concious. Consumer will buy the product on discount still he/she will discuss some negative point between their group.
By Virag Shah, Confidential  | 01 22 2011 05:25:08 +0000
Argue for "Discount factor is as positive"
Argue for "Discount factor is as negative"
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