Marketing and Rebates
Are rebates successful? Your job, as the marketing director for a newly formed company, is to evaluate how successful rebates are. What are their advantages and disadvantages to the company and the customer? Prepare a report to the CEO.
January 7, 2013
Table of Contents
Introduction………………………………………………………………………1
1. Rebates Defined? ……………………………………………………………...2-3
1.1 Successfulness of Rebates……………………………………………..3-4
1.2 Who Uses Rebates? ……………………………………………..4
1.3 Advantages of Rebates…………………………………..4-5
1.4 Disadvantages of Rebates………………………...6-7
1.5 Are Customers More Susceptible to Buying Products on Rebates? ………………………………….7
1.6 High Cost Risk……………………...7-8
Recommendation…………………………………………………………………8-9
Conclusion………………………………………………………………………9-10
References………………………………………………………………………..10
Introduction
Consumers now go to stores wary of the economic recession of recent times. Many now have less disposable income to spend and as a result have changed their spending habits in an attempt to cope with this economic crisis. Presently, customers are able to save a lot of money as a result of marketing strategies such as rebates. Rebates are widely recognized as refunds, and are used by businesses to promote and advertise their products and services. Rebates are designed to reimburse the customers for part of their purchase. Rebates have been successful in many organizations that have wanted to promote and advertise their services to customers by providing them with an incentive to buy particular products. There are typically two types of rebate, an instant rebate, and the most common and widely used, mail-in rebate. Rebates usually have an expiration date of six to eight months, and can prove beneficial to some companies as consumers generally forget to mail in their documents in order to receive the rebates. This in turn benefits the company as the customer has paid in full for the product. As a newly formed company, rebates can help with customer
January 7, 2013
Table of Contents
Introduction………………………………………………………………………1
1. Rebates Defined? ……………………………………………………………...2-3
1.1 Successfulness of Rebates……………………………………………..3-4
1.2 Who Uses Rebates? ……………………………………………..4
1.3 Advantages of Rebates…………………………………..4-5
1.4 Disadvantages of Rebates………………………...6-7
1.5 Are Customers More Susceptible to Buying Products on Rebates? ………………………………….7
1.6 High Cost Risk……………………...7-8
Recommendation…………………………………………………………………8-9
Conclusion………………………………………………………………………9-10
References………………………………………………………………………..10
Introduction
Consumers now go to stores wary of the economic recession of recent times. Many now have less disposable income to spend and as a result have changed their spending habits in an attempt to cope with this economic crisis. Presently, customers are able to save a lot of money as a result of marketing strategies such as rebates. Rebates are widely recognized as refunds, and are used by businesses to promote and advertise their products and services. Rebates are designed to reimburse the customers for part of their purchase. Rebates have been successful in many organizations that have wanted to promote and advertise their services to customers by providing them with an incentive to buy particular products. There are typically two types of rebate, an instant rebate, and the most common and widely used, mail-in rebate. Rebates usually have an expiration date of six to eight months, and can prove beneficial to some companies as consumers generally forget to mail in their documents in order to receive the rebates. This in turn benefits the company as the customer has paid in full for the product. As a newly formed company, rebates can help with customer
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