Promotions do not lead to waste

Promotions, such as buy one get one free (BOGOF) deals, don’t encourage consumers to buy unnecessary products, according to research from the Advertising Association.

Sale

But within the promotions sector, companies should look to price promotions only when appropriate.

The AA findings show that more than two-thirds of consumers view promotions as a valuable way to ease financial pressure and try new products. Only one in five say that promotions encourage them to buy products they don’t want.

The Institute of Sales Promotions (ISP) is using the data to counter claims that promotions, such as BOGOFs, encourage shoppers to buy unnecessary items.

ISP chief executive Annie Swift says: “This research shows that far from creating a nation of mindless hoarders and wasters, as some critics have suggested, promotions are welcomed by the vast majority of consumers who, in the current credit crunch, are actively searching out deals that deliver real value.”

Price promotions particularly have come under fire in the recession for ultimately devaluing a brand and industry experts, including the Chartered Institute of Marketing, have warned that it can be very difficult for a brand that has price promoted too heavily to return to a more premium position.

Swift says: “Pure price promotions can have an impact in the short term but in the long term they devalue brands. We strongly believe that marketers shoudld be looking to use added value promotions, which are brand-building, behaviour changign and which can also help consumers save money.”

Latest from Marketing Week

NOT REGISTERED? IT'S FREE, QUICK AND EASY!

Access Marketing Week’s wealth of insight, analysis and opinion that will help you do your job better.

Register and receive the best content from the only UK title 100% dedicated to serving marketers' needs.

We’ll ask you just a few questions about what you do and where you work. The more we know about our visitors, the better and more relevant content we can provide for them. And, yes, knowing our audience better helps us find commercial partners too. Don't worry, we won't share your information with other parties, unless you give us permission to do so.

Register now

THE BEST CONTENT

Our award winning editorial team (PPA Digital Brand of the Year) ask the big questions about the biggest issues on everything from strategy through to execution to help you navigate the fast moving modern marketing landscape.

THE BIGGEST ISSUES

From the opportunities and challenges of emerging technology to the need for greater effectiveness, from the challenge of measurement to building a marketing team fit for the future, we are your guide.

PERSONAL AND PROFESSIONAL DEVELOPMENT

Information, inspiration and advice from the marketing world and beyond that will help you develop as a marketer and as a leader.

Having problems?

Contact us on +44 (0)20 7292 3703 or email customerservices@marketingweek.com

If you are looking for our Jobs site, please click here