David Ogilvy: The risks of discounts
Adaptation of the original post: David Ogilvy: The Danger Of Discount Pricing
David Ogilvy, a legend of marketing and branding, in 1986 delivered very strong words about discounts and price it deserves, at the time of fever discount coupons, worth repeating:
- Any damn fool can offer a discount but building a brand requires genius, faith and perseverance.
- The financial rewards are not always reflected in earnings per share next quarter, but always arrive. When Phillip Morris bought General Foods for five billion dollars they were buying brands.
- There used to be a thriving brand of coffee called Chase & amp; Sanborn. Then they began offering discounts. They became addicted to rebates. Where is Chase & amp; Sandborn today? Completely dead.
- The manufacturers focus their advertising to build a favorable image, more defined personality for your brand, are the ones that get the highest percentage of higher margin market
- It has come time to pound the alarm! You have to announce what will happen if brands are dedicated to providing offers when no money are left for advertising.