PRICE PROMOTIONS

CHRISMA JOY M. SAMSON

BSBA-4C
 PRICE PROMOTIONS

Price promotion is a discount intended to increase sales. This frequently leads to an

increase in a sales in the short term at the price of profit margins. Alternatively, a price

reduction might be a part of a strategy to maximize long-term returns on client

acquisition and retention.

COMMON TYPES OF PRICE PROMOTION

Sale Price – Putting items on sale by offering a percentage or a dollar discount such as

50% off.

Multi-Buy Promotion – Offering a deal with multiple purchases such as buy two get one

free.

Coupons – Issuing coupons to customers. This is a form of price discrimination as price

insensitive customers may not bother looking for coupons.

 Deal of the Day – Regular deals , often loss leaders, that are designed
to encourage regular and habitual habits.
 Loss leader – is a very slow price for an item that is designed to get
your customer to visit.
 Regular Sale – a big sale whereby all items or most items are
discounted that occurs at regular and predicable intervals.
 Sales event – a sale that is combined with promotional features such
as contests, free food and giveaways.
 Clearance price – steep discount for unpopular or out of season items
that are designed to clear inventory.
 Seasonal Sale – A sale that attempts to prevent inventory problems by
discounting a seasonal items in the middle of the season.
 Limited time offer – an offer that expires very quickly so as to
create a sense of urgency.
 New customer promotion – a price promotion that is only
available to new customers.
 Subscription deal – a price that is only available if you subscribe
to regular automatic purchases that can be cancel any time.
PRICE BUNDLING

Price bundling is the practice or merging many products or

services into a single comprehensive package for a discounted
all-inclusive price. Despite the fact that the things are sold at a
discount, it might improve revenues because it encourages the
purchase of many items.

Price bundling, also known as a bundle pricing, is a retail

strategy that allows businesses to sell a large number of things
at a larger margin while also offering a discount to customers.
Bundle pricing involves shops offering multiple different things as
a package deal, then selling that package to customers at a
cheaper price that it would cost buy those items separately.
Two fundamental bundle pricing strategies :
Pure bundling – is when products are only sold together. In some
cases, products don’t exist outside the bundle. Pure bundling has
three subcategories:
 Joint bundling is when the two products are offered together for
one bundled price.
 Leader bundling is when a leader product is offered for a discount
if purchased with non-leader product.
 Mixed-leader bundling is a type of leader bundling with the added
possibility of buying the leader product on its own.
Mixed bundling also called custom bundling, is when customers are
offered to purchase a bundle or separate products on their own.
Consumers are offered complete cable, internet and telephone
packages. The price will depend on the level of service that the
package provides. If you choose high-speed internet and maximum
channels, it’s going to be much more expensive than getting a
package with low-speed internet and minimum channels.
 THANK YOU
MA’AM & CLASSMATES 