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promotions and discount codes
promotions and discount codes


Understanding difference between promotions and discount codes

Whenever a brand launches a new product or product line, the whole team has to work hard to make it successful in the market. So, in order to bring out the product effectively, the business tries a whole lot of tactics and trick to get through.

Here, the most common ways are promotion of the brand and product and offering discounts in the initial stage. When a product is launched, sales promotion method is used as a common tool to promote sales of the newly launched product.

The idea behind this method is to create publicity of the item. It creates awareness and compel people to buy the product.

When it comes to promotion, there are 3 motives of promotion:

First – To inform the public about the product.

Second – To raise the demand of product in the market.

Third – To create a competition and tell people how this product is better than the other similar existing products.

Here, if we talk about the ways in which the brand can promote the product, it can be anything from internet marketing, newspaper ads, special ads and other methods.

Imagine seeing an email from a brand informing you about the new mobile phone which is launched just a few days back and when you visit their store, they ask you to have a demo of the same mobile phone.

All these activities are a part of the promotion game. And if everything goes as per the plans of the business, then the customer might make a purchase.

Now that you know the game of promotion, let’s imagine that the brand offers the product at a certain lower price than its market price, then they are providing you a discount as part of the early launch scheme.

The discount can be offered in various ways and nowadays, the most common is the discount codes.

With that, let’s look at some more points of difference between promotion and discount.

A simple reduction Vs a whole procedure

While discount is just a basic deduction in the usual maximum retail price of the product, on the other hand, promotion is a set of activities that is done to motivate a customer to make a purchase and help business to reach their sales goal.

Discount is a part of sales promotion

Discount and discount codes are a part of the sales promotion process and promotion is one of the seven imperative aspects of the promotion mix which are sales promotion, advertising, direct marketing, personal selling, PR, corporate image, and exhibitions.

One facilitates sales and the other gives power to it

The purpose of discount is to rapidly increase short-term sales of a product and completely sell out old and outdated inventory. Apart from that, discounts are introduced to reward loyal customers.

In promotion, the brand focuses on informing the customer about the qualities of the product and attract the customers.

What are the common examples?

Some of the common examples of discount are discount coupons, senior citizen discount, rebates, etc. And sales promotions can be demos, samples etc.

So, that’s it for now! This was our quick guide to the differences between promotions and discounts. We hope that your doubts are clear now.

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