Strategic marketing: When should you offer a product or service discount?Some of you will say never to discount price. Getting your pricing right is an important element of marketing. And to get the extra sales boost you may want to consider price promotions. One of these is offer a price discount that can be an effective tactic to get more customers. This article is not about reducing your price to get a one off sales and hope extra business will someday follow. It is about using discounting in a smart and simple way to get your business new customers and increased sales in short term....
Price cutting gives a false sense of confidence because it consistently shows a spike in sales whenever it occurs. Getting your price right is an important element and to boost sales considering price promotions is an option. This article discusses how to discount in a smart manner to get your business new customers and increased sales in the short term. In the article it explains four different scenarios when to use price promotion. These include when you are launching in a competitive market, if there are going to be on going repeat sales, as a lead in price and if your product if bought on a regular basis. The key factor to think about when using a price reduction strategy is to focus on the short term reward and not one that you have to rely on to attract customers to your business.
Sales promotion as an Integrated Marketing Communication tool to help reducing competitors. Sales promotions ate therefore needed to correct a bad situation or avoid a donwturn. Not only discount origional prices, there are two kinds of sales promotion. Trade promotion and consumer promotion. only cutting the prices down is a false sense of confidence. we should care about long term health of the brand not be tempted by short term gains in sales generated by price discounts.