Posted in Marketing and Strategy Terms, Total Reads: 1305

Definition: Load

In marketing, customers and trade partners are provided with different types of promotions. They are divided into two categories namely front-loaded promotions and rear-loaded promotions.

Front-loaded promotions:

Front-loaded promotions are promotional strategies where the customers get the benefits while buying itself. For example coupons, price packs, peel-off coupons customers get the benefit immediately.

Rear-loaded promotions:

Customers get the benefits of buying the product after buying. For example, when they buy products with in-pack coupons or products affiliated with loyalty programs, promotion incentives are obtained on the next purchase occasion or later.

The decision of whether to buy front-loaded incentive or rear-loaded incentive is taken by the customer based on his/her choice processes. When we consider variety and inertial markets, the sales impact and the sales on discount are higher for front-loaded promotions but from a profitability perspective, rear-loaded promotions may be better than front-loaded promotions.

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