Promotional Pricing
One of the most powerful sales promotion techniques is the short-term price reduction or, as known in some areas, "on sale" pricing. Lowering a product’s selling price can have an immediate impact on demand, though marketers must exercise caution since the frequent use of this technique can lead customers to anticipate the reduction and, consequently, withhold purchase until the price reduction occurs again.
As we will see in the tutorial Setting Price: Part 2, promotional pricing is also considered within the framework of the Price marketing mix component. More on of this technique is provided in that discussion.
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