The high popularity of discount coupons is the best indicator of their effectiveness in marketing a product or service in many cases. Sometimes, the marketer may like to enter a new market segment, or introduce a new product to the market. Or, there may be a situation where the marketer has a large unsold inventory waiting to be cleared. In all such cases, a discount coupon offer can provide an immediate boost to the sales within a short period of time, or attract new customers to try out the product or service.
It is not necessary that every discount coupon scheme must offer a flat cash discount only. There are innovations within discount coupons as well. A scheme offering “Buy One, Get 50% off on the second purchase”, or “Buy One, Get One Free” may encourage the customers to buy more quantity at a discounted price.
In businesses where there is excessive competition, such as the mass consumer goods segment, discount coupons serve an effective purpose for the marketers to stay competitive in the market. Discount Coupons also have an inherent word-of-mouth publicity potential, as the word gets around regarding any special offers to promote a particular brand.