Almost every day, we're exposed to multiple enticing discount offers from Groupon, Deal of the Day, Retail Me Not, FourSquare and practically zillions of others. About 15 years ago, Payless ShoeSource pretty much pioneered "Buy 1 Get 1" and internally referred to it as BOGO. Now, many retailers are offering BOGO and most consumers understand what that means—and take advantage of it.

Those who have a product or service to sell can be intoxicated with the visions of all the new dollars these sales can bring. But they should approach discounting with a level head and a specific goal for what they want to achieve. Coupons and other sales promotions are great for:

• stimulating trial from new customers
• getting current customers to try something new
• encouraging people to buy up/spend a little more
• creating buzz

At MB Piland, we think coupons and discounts can have a place in an advertising plan's marketing mix. But like any good sundae topping, they should be used sparingly, and to boost interest. When first piled on, those sprinkles look fantastic. But eventually, it becomes apparent they were a bad idea. Too much discounting just trains customers to buy only when there's a "deal." Over time, that erodes the brand because it's viewed as a commodity. It takes another sales promotion to drive traffic—and a vicious cycle ensues. Profit margins shrink. Doors close.

Of course you can offer discounts. But be sure you're balancing them with the things that really build loyalty: an excellent product, great service and branded customer experience. —Martha