Advantages and Disadvantages of medicine coupons

posted on 16 Dec 2012 22:19 by pharmacycoupon
Pharmacy CouponsIn marketing, a coupon is a ticket or document that can be exchanged for a financial discount or rebate when purchasing a product. Coupons are issued by manufacturers of consumer packaged goods, medicines, or by retailers, to be used in retail stores and pharmacies as a part of sales promotions. They are often widely distributed through mail, magazines, newspapers, the Internet, and mobile devices such as cell phones. For medicine coupons, it appears to become a popular marketing tool because merchants can provide consumers with incentives to buy their medicines in return for sales. Medicine coupons are permits that entitle the bearer to stated savings on the purchase of a specific medicine or pharmacy bundle. These medicine coupons claim to assist marketing strategies that satisfy such goals as promoting a new brand and influencing customers to switch to the promoted brand through manufacturer-issued coupons.

Medicine coupons might be successful because they allow the merchant to collect information about current customers as well as indicate new drugs in market. However, medicine coupons are said to have downsides also. Distribution channels might be slow and long lead-times. Often, less than 1% of the distributed coupons are redeemed. This is largely due to the opportunity costs associated with searching for coupons. It appears to that redemption rates are quite low. It shows that it is hard to tell whether how many consumers will use coupons and when, and often only loyal consumers will purchase. On the plus side, it appeals to price sensitive for consumers attracting them to avail one. It claims to offer discounts without the retailer cooperation. And lastly, it appears to be an effective way to induce trial medicines.