Summarize the advantages and disadvantages of coupons

What will be an ideal response?

The dominant form of price-oriented promotion is couponing. Marketers prefer coupons because of two main reasons. Firstly, coupons are an effective way to target discounts and other incentives to households that are particularly sensitive to price. Second, coupons are flexible in that they can achieve different kinds of goals.
There are also several drawbacks to coupons. First, because they are so common, there is no way to gain a competitive advantage using a coupon program. No competitor will reduce the amount of couponing for fear of a precipitous drop in market share. Second, the response rates are very low, so the expense per redemption is high. Third, there is considerable potential for fraud, ranging from counterfeiting to misredemption.