Promotional Pricing

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The promotional pricing are resource marketing that many companies use throughout the year , whether or not time discounts (For example, in Spain and there is no regulation of the sales period, regulated and restricted to two periods a year ). The periods of discounts group lower prices in the market with the aim of attracting more consumers, attracting customers, releasing inventories, promoting purchases in the company, influencing the price image, etc.

How do promotional pricing affect the consumer?

Is the consumer as sensitive to promotional pricing as you think? It's not enough only to put discounts and promotions on the products or services that are normally offered, but the price strategy on offer must be focused on the target audience that you want to achieve, describe a buyer profile as Buyer Persona ) and check how much that profile is willing to purchase the product at that time.

Price is known to be one of the determining factors in consumer choice over different brands, and even different products. Still, it's not the only thing that affects your decision. The context of purchase, the use of the product, if it's fashionable at the time, etc. Both factors of the person and their environment will influence the consumer's buying behavior , and, therefore, their behavior in the face of sales. That is why we want to explain how the consumer reacts to these discounts and give some advice on how to guide discount pricing strategies.

The importance of sale prices

Discount prices are established to capture the attention of consumers and, therefore, to expect a reaction to their reference prices and for them to choose said sale product. Being more or less sensitive to these discount prices will depend on certain factors, which are:

  • The type of buyer: Their economy has a lot to do with choosing a product on sale or not.
  • Use of this information in purchasing decisions.
  • Carrying out price comparisons.

If the buyer's profile adapts to these characteristics, it will be easier for him to analyze the different prices of products or services that are presented to him in the market and take advantage of those opportunities, if he considers it as such. And it will do so if the company performs the correct management of the strategies of these prices.

These are economic motivations , although there are clearly others of a social and cultural nature . As for example, the entertainment that is applied to the purchase activity or the role that the correct family expense represents accepted by society. Although, under all these reasons, there is an underlying one that is a main element of the economic question: the best purchase options are sought in the market with the idea of minimizing monetary costs.

However, the reactions of consumers to a stimulus will vary according to the importance they give to the purchase decision . The more important it is, the higher the level of involvement by consumers and the higher the level of use of the evaluation premises you use. It's the job of the company itself to convince the consumer that they really need that promotional product or service. Keep reading and know the profile of these consumers!

How do consumers analyze prices?

Consumers who are more price-sensitive conduct a search for information , which they then analyze and, over time, accumulate into an apprenticeship . This learning can be both intentional and accidental , that is, the consumer can make an effort to learn and memorize prices, or simply do it without any intention (fortuitous result of the information obtained).

The way you analyze prices may differ from one customer to another. Within the literature on the subject of prices in promotions, there are two ways that are usually adapted to the evaluation of these types of prices.

When faced with discounts, the consumers who are most attracted to them are more likely to see their behavior affected and the probability of acquiring a commercial offer increases , aided by the companies' price reduction strategies . In this altered behavior, actions such as the choice of the brand, the quantity of the product to buy, the purchase time, etc., are the ones that are influenced.

Profile of the most sensitive consumers

As we have mentioned previously, it's necessary to carry out a complete investigation of the Buyer Persona and its environment so that the company can direct its marketing actions , and specifically, its discount strategies. However, various studies have confirmed that there is a sociodemographic profile of consumers who are more likely to purchase promotional products .

Income level

In this case, it's logical to think that lower-income customers take more into account the products in promotion , and indeed, it happens this way. The need to optimize the available budget and allocate it to that objective is sought . A good example is the segment of students who live outside the family home , since they must manage the budget they receive from their parents or from different types of scholarships, and for this they seek savings. The company that would like to reach them should consider an offer price strategy for these young people.

Level of education

The level of training, that is, of studies, is one of the characteristics of consumers that differentiates them in terms of price sensitivity . A person with a higher level of training tends to be associated with jobs that offer higher income. Therefore, the lower the level of training, the customer will be more aware of the reduced prices since they will have less income.

kind of product

The product category also influences the customer's sensitivity to prices. Companies must consider when price is an important factor for Buyer Persona and when it's not . In the event that it is, marketing strategies focused on price will be needed, while if the product doesn't play a relevant factor, these strategies will focus on another objective.

How do you know if the pricing is appropriate? The fixing of the selling price is very important and decisive in the success of a company . To know in what range the budget that people spend in the sector of the company moves, the prices established by the competition can be studied .

Strategies to attract customers looking for promotional prices

If you want to promote your sale prices, you must take into account certain characteristics. Raising your offer isn't a task to be taken lightly. The most important thing for any pricing strategy you follow in your business is planning . It's the first and most important step to prevent unexpected situations. Here are some steps:

1 - Limited Time Offer

Promoting that the products and services that are on sale , and will not be around, is a way of telling the buyer that they must hurry if they want to take advantage of that opportunity. How many "bargain" trips are found online each day? It's a pricing strategy to capture the attention of consumers, and a way to convince them to purchase the product or service at that time.

2 - Clearly express the benefits

It's necessary to put yourself in the shoes of the customer, to know what they will get if they buy your product . If it satisfies a need, in what way and at what level are an example of what can be explained when an offer is presented.

Not only do you need to make it clear what the customer gains by buying your product or service, but you also have to take advantage of what differentiates it from your competitors . Communication is basic and success or failure may depend on it.

3 - Complement with tests and examples

For users, checking how your product or service works can alter their decision to purchase it . That is why if you have the means to demonstrate to the customer how, and that the product actually works, it's better to do so.

Another option is to use testimonials from other clients . Many consumers consult the opinions of others who have already tried that brand before making any decision. And many companies choose this strategy each time.

4 - Convince yourself of the value for money

A customer satisfied with the purchase made takes into account that the value he has obtained is much higher than the price paid for that product or service. To get to this, the user can be explained that the results of their purchase will be very beneficial and it will be worth paying for them.

5 - Guarantees

This strategy must be applied in all seasons, whether they are sales or not. Especially if it's about companies that sell over the Internet . The risk that users have in mind is very high, and it's necessary to reduce it and affirm that who bears the risks is the company . A satisfaction guarantee can help the consumer trust the company a little more.

We hope that after reading this article you can put your coupons using these 5 promotional strategies and you can attract your ideal customer at that moment of decision regarding your product. And as always, we recommend that if you want to know more about how your ideal customer profile behaves and adapt your marketing strategies to it , get in touch with us. We are experts in digital marketing and consumer behavior.

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