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Product Offers Are For Increasing The Demand In The Market!

Last week I got a newsletter from my provider about the latest Offers that are available with them. It made me wonder how they find profit if they are going to provide their service with discounts and reductions on their service. Well they would not be going on a loss, but the profit margin would be comparatively less. Advertising is a field that had always intrigued. I read a sentence in magazines which goes something like “advertising has the power to make and break a business” which I find is very true. How do we know about the latest product in the market? How do we know about the various brands? It is true advertising. Though creators are the ones who are behind the making of a product, it is the advertisers or the marketers who launch the product in to the market and to the right kind of targeted audience.
When I was browsing through the ways in which advertising or a PR company works, it amazes me to see the amount of work that goes behind the launch of a particular product or service or even advertising a product that is launched in the market. There are many agencies that have teams just for researching on ...
... a particular product or service. This is the platform for the making of an advertisement. Ideas are usually generated with the help of these researches. Unlike what many of us think, it is not the designers or the creative heads that come up with an idea for the advertisement.
Advertising agencies have an exclusive department called client servicing. They are the pillars and driving forces for an advertising industry. An advertising agency is run by these guys and not the creative guys. They are responsible for coming up with an idea and helping the creative department implements the idea. The work of the creative is to design the advertisement or direct an advertisement, the rest are done by the client servicing department. From convincing the client to sending the advertisements to the publishing agencies, they do everything. The pressure is mainly on these guys as they have to meet with the deadline and client’s expectations. They are basically organizers and managers. They are the only point of contact between the client and the agency. Any work that goes out or come in should go through them.
Coming back to the discounting strategies that various businesses have for their product and service, it made a pretty interesting study. Whenever a new product or service is being introduced in the market, the most effective way to create awareness in the market is by providing them with discounts. There is clearance sale that comes up during certain reasons which comes in a completely different category. But when a certain product or service is available on discount or when there is something free with the product, there is always a reason. There is nothing given freely in a profit making business. There is always a reason behind every discount.
When the overall demand reduces a notch, when the product is forgotten in the market then that particular product would definitely have an offer. It can be a reduction in the MRP, an addition to the quantity, something free with the product, additional features, etc. so once the product picks up again, then it is again sold without any fringe benefits. So benefits for products or service are offered not just for launching a product in the market but also for various reasons. Money is spent on advertising these offers so that the demand increases in the market. Once the demand increases, then the product’s value is brought back to the original price.
Samantha Kirk is a freelance writer and an active blogger. She enjoys television entertainment and gets monthly Offers through her providers!
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