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.


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.”

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