Strategic Marketing

Assignment 2

Submitted by:

Tausif Iqbal

400819

Submitted to:

Dr. Sobia Asghar

Date:

29-11-2022

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 Why brands offer sales on their products at the end of month/season
when they know that people have less money at that time?

1: Why brands offer end-season/month sales?

Brands go for end of season sales prior to season change, as the whole stock is required to be
rotated now and changed as per the requirements of season and customers
This will ensure that all the accumulated stocks are cleared and the inventory is put to good use
and this will also boost the marketing of the brand as the product reaches to the customers by the
way of discount. Also clear the space for the newer inventory, this way the retail outlet will look
good with new products.
The end of the financial month/season is the time for the brands to close their sales records and
financial ledgers. So every business holder would want to have a high ending closure for their
financial season with as much sales as they could achieve. This is achieved by discounting the
products at the end of the season.
There is a historic expectation in the minds of customers and so it needs very little advertising
expenditure to be successful because customers are always waiting in high anticipation at this
time season and most of the times customers are not buying during the month just in the wait for
end-season sales. Thus, it would make the customers to come out and shop.
Also for the business manager and marketing head of the company it is their sales report that
plays a very important role in maintaining their repute and ultimately helps them for their
promotion. So they would try to maximize the sales with every possible tactic they could use.
Another reason that makes end of season successful is that when at the start of the month
customer has surplus money he would become choosy and start comparing product with its value
for money and alternatives being offered by other competitors but if sale is being offered on a
product the customer’s only concern is to milk the opportunity.

2: Why customers would still buy from the end-season sales in spite of low budget at the end of
month?

End of season sales is the most valuable time in the minds of the customers for shopping.
According to them it the only time when they could have the best value for money against a
product that they are buying.
Although at the end of the month is the time when a person (buyer) is having the lowest budget
and only focuses on buying the products that are essential for survival but at the same time he
goes for shopping the end of season/month sale mainly due to the following reasons:

i. Sales work best when the herd mentality is activated and nothing activities this as well as pent-up
demand coupled with the feeling of missing out on the one genuine sale of the season.

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 ii. FOMO (fear of missing out) also plays a crucial role as nobody wants to miss on the most
valuable sale of the season so even with scarce resources people would go shopping due to this
fear.
iii. The scarcity close fear also compels the customers to buy as there would be a limited stock
available for sales and the sales would last for a limited duration of time and no one wants to
miss this opportunity before it runs out.
iv. The customers also thinks that at some point in the future time I am going to need this product
but at that time maybe the product is not on sale or maybe the supplies had ran out so in spite of
buying it at that time at higher price or being left out I should buy it now

The different type of end of season sales (example: flash sales, hot sales, day sales, hourly sales
etc.) create so much pressure and hype on the mind of the buyer that he thinks that if he skips
this opportunity he might lose a big deal so in spite of low budget at the end of the month, the
fear of missing out on the sale becomes as much important as the need for survival goods.

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