Essay: Criterion for Effective Rebate Program
A strategic rebate program embarks on market catalyst impacts while making efforts that must reduce the negative effect to almost zero. There are four major principles that guide marketing directors while developing the best and most effective rebate program. These are:
- Long term planning
- Development of specific rebate program for specific technologies
- Employment of integrated approach of market transformation program
- Employment of market based rebate strategies
LONG TERM PLANING
It is essential to note that market transformation is a long period process. Therefore, the rebate program needs to be evaluated in respect to their long-term impacts. Severally, the budget runs form a year (financial year), and this requires the strategy cycle to also run annually. The marketing director is required to focus on the long-term effect, which are impacts beyond the present planning period. The long-term rebate program needs to give respond to a set of questions. Among the set of questions that an effective rebate program needs to categorically answer are:
- How will the rebate program achieve its objectives in the long run of acting as a catalyst in the market?
- How will the rebate program be changed overtime in the long run since changes brought about by globalization are inevitable?
- What are the market conditions at the market such as the changes in market prices, kind of market, market shares?