Trends & Innovation

The Fundamentals of Digital Discounting Smart Pack

By Sam Dwyer, Econsultancy,


Our Smart Packs explore rapidly changing areas in marketing, and quickly bring marketers up to the cutting edge. This Pack, The Fundamentals of Digital Discounting explores one of the hottest topics of the past year. Digging deep to cut through the hype, it outlays basic effects of discounting, then builds up through cultural and technological change, strategic shifts, and the new tactical opportunities for marketers that are being capitalized upon by companies like Groupon, Amazon, Gilt, and more.

About this report

The digital discounting industry has seen some explosive growth over the past few years, and new competitors are entering the field daily. How are marketers supposed to keep up?

This Smart Pack, The Fundamentals of Digital Discounting, pulls back from the relentless focus on industry changes, and pins down the few basic concepts that have remained stable.

What is a discount, and why do it? How can companies and brands make sure that a discount contributes to an overall strategy? How do consumers respond psychologically to discounts?

This report asks these strategic questions, then moves to the tactical:

  • Explain the strategy-altering changes being wrought by technology
  • Identify the new discount marketing opportunities that have resulted because of change
  • Note the companies that are attempting to leverage those new opportunities

This report will help marketers to understand for themselves what the differences are between the various third party vendors crowding the discount space, and how to evaluate their offerings. It also will be useful to marketers who are attempting to build their own sales channel through which they intend to provide discounts.

Finally, it analyses three different types of discounts "culled from the wild," collects quotes from marketers who have experimented with discounting, and ends with a series of questions for marketers to ask themselves before launching their next discount.

Table of contents

  1. Introduction
  2. About This Report
    1. About Econsultancy
  3. What is a Discount?
  4. Why is Digital Discounting so Confusing?
  5. What Discounting Can Do
    1. Build brand awareness
    2. Create positive engagement
    3. Develop psychological compulsions
    4. Sell more while costing less
    5. Clear inventory while making consumers feel special
  6. Overview: What’s New?
  7. Hunting Down Wild Discounts
    1. Playing games:
    2. Mobile targeting: Living Social
    3. Discount warehouse:
  8. Daily Deal Experiences
  9. Questions for Review


  • Pdf Disabled The Fundamentals of Digital Discounting Smart Pack (720 KB PDF)

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