Addicted to price cuts

Steven Round from Robert Dyas compares UK and European retailers’ use of price promotions in your Cover Story on pricing (MW 3 February, saying: “Retailers use promotional mechanics more aggressively in the UK than they do on the Continent.”

Indeed they do: but it’s not the UK retailers who, by and large, are funding these price promotions, although they are the ones benefiting from it. The ones footing the bill are almost always the brands whose products are on the shelves.

We at the Institute of Promotional Marketing are trying to educate brand owners about the true cost of an orgy of price promotions and nothing else. While such over-indulgence may drive sales in the short term, they are not necessarily profitable sales, and in the mid- to long-term they destroy brand value.

Companies should reduce their addiction to price promotions and divert some of the money to value-added promotions, which drive growth in sales, profits and brand equity.

Annie Swift
CEO
Institute of Promotional Marketing

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 3711 or email subscriptions@marketingweek.com

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