The Resurgence of Coupons into the Dominate "New" Marketing Channel
It's been a remarkable resurgence. In today's dynamic and extremely volatile marketplace, it's unusual to see anything survive the struggles of stiff competition. It's even more surprising to see something progressively lose its market share only to suddenly surge back into a position of prominence. But this is exactly what's happened to the coupons industry in the last several years and it's a story about a dynamic marketplace where the survival of the fittest is often determined by other developments which, as in this case, resulted in coupons surging back into center stage in the world of marketing.
While this resurgence of coupons developed during the economic downturn over the last several years, the two dynamics were actually unrelated. It is true that the issuance and usage of coupons increased fairly strongly in the last several years as families and individuals sought to preserve their household income, but the cause of this increase was quite independent of the current economic condition and would have happened, just as surely, in any case.
What caused this new growth and vitality in the coupons sector? Something that initially almost no one could have seen coming - the total domination of the information niche by the world-wide web. That's right, the internet. It's changed everything and along the way it's caused at least 2 former giants in the news and information niche to fade out of prominence. This loss of market share in the information niche also resulted in the yellow pages and the newspapers losing their position as marketing channels, thus opening the door of opportunity for others.
The decision to abandon the paper and phone book was a simple one for most retailers and manufacturers. They had to either find another effective marketing tool(s) quickly, or prepare their own "Going Out of Business" signs. It was as simple as that.
The key solution that most retailers have adopted so as to continue connecting with buyers, is a proven, but lately faltering medium, the oh-so-familiar coupon. In these days of urgency, of virtually instant everything, when nearly all things are changing at a dizzying pace, it's fascinating to see a hundred-year old promotional channel experience a sudden resurgence to become the chief remedy for so many vendors' marketing requirements. Who would have thought that the somewhat trivialized coupon would end up being an exciting marketing channel again for hometown, regional, national and even international companies?What made coupons the right choice for sellers?
* First of all, they were already in place and had been for over a century.
* Secondly, coupons offered both sellers and consumers a well-known and, even more importantly, a well-understood tool that could be in use instantly without any kind of time-lag between introduction and popular usage.
* And maybe the best reason: coupons are so inexpensive that producers and retailers can pass on excellent discounts to consumers.
The coupons industry is alive and well and growing both in new markets as well as in overall usage. Reliable sources indicate that sellers as well as consumers will continue to move towards coupons in the foreseeable future.
While the remarkable comeback of the coupons niche is an interesting study, when you read our follow-up article, you'll get a glimpse of the positively explosive potential of this industry driven by new innovative options as well as surprising tech applications that will transform the industry into a marketing giant.