Promotional Pricing Strategies: Boosting Sales and Enhancing Brand Image

Promotional marketing Promotional pricing is when you reduce the price in order to boost sales, and thus attract new and existing customers. It is also known as promotional pricing which helps increase the demand for a product. This method’s optimizes the number of customers by decreasing the price. Some of the promotional prices strategies are as follow: Special event pricing is when companies reduce some prices at special occasions, like for example holidays or festivals. Cash rebates is when the customer gain some cash when he purchases some goods or services under some conditions. Loss-leader price: in this case some companies lean towards minimizing the price for some brands in order to boost the customers’ traffic to the store. This strategy is often rejected by retailers because it has a bad effect on the image of the brand. Low interest rating is when cellular companies offer an EMI scheme with less rate of interest, so as to boost the sale of their mobile sets. Some other promotional price are: 1) Warranties and service contracts. 2) Psychological discounts Promotional; pricing is important for both manufacturers and retailers. It is typical given for many product instead of one particular product, and the aim is to boost sales from the manufacturers and merchandisers side. This crucially helps them to: 1) Have more customers 2) Increase sales 3) Increase profits 4) Enhance brand image Another important benefit for the promotional price is to encourage customers to buy new goods or try new services. In addition, this increases the loyalty of customers towards a new brand or one they used to interact with.