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Price Promotion Strategy

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13 Types of Price Promotion Strategy

A price promotion strategy is a plan to achieve marketing goals with price price reductions. The following illustrative examples.

Price Discrimination

Price discrimination is a pricing strategy that charges price insensitive customers more and price sensitive customers less. For example, price sensitive customers may be willing to collect coupons to get a discount. Price insensitive customers are far less likely to use coupons unless they are easy to find and use.

Customer Acquisition

Discount offers that are only available to new customers. For example, an internet provider that offers to pay the cancellation fees charged by a competitor.

Impulse Purchases

Sales designed to create impulsive purchases. For example, an ecommerce site that has a 12 hour deal with a timer that counts down.

Behavior Reinforcement

Sales that encourage habitual purchases such as a sale every Tuesday at a hardware store that encourages customers to visit weekly.

Customer Visits

Sales that are designed to get customers to visit such as a loss leader whereby you offer a single product at an unprofitable price to attract customers.

Tit for Tat

In some cases, a sale isn't aimed at customers but at competitors. For example, quickly matching any sales by your competitors as a tit for tat response designed to prevent them from starting a price war.

Market Share

Sales designed to increase your market share whereby they are a long term strategy that may decrease short term profitability. For example, a night club that's relatively unpopular that offers cheap beverages to grow its customer base.

Loyalty Breaking

A sale price designed to get the loyal customers of your competitor to try your product. For example, a cola that seeks to grab brand loyal customers from a competitor with a sale price of 50 cents a bottle where the competitor is charging $1.99.

Loyalty Reinforcing

A sale that leverages your base of loyal customers or that seeks to reinforce their purchasing behavior. For example, coupons mailed only to loyal customers.

Target Market

A sale aimed at a particular target market such as a seniors discount day.

Psychological Discounting

Sale prices and discount rates that are perceived positively. For example, sale prices that feel honest and low such as $9 as opposed to $8.99.

Revenue Management

Revenue management is the process of optimizing prices for inventory that expires at a point in time such as a seat on a flight or night in a hotel room. This calls for complex strategies that are responsive to inventory levels. For example, a flight that is expensive four months before departure that is steeply discounted if seats don't begin to fill a month before departure.

Inventory Clearance

Sales aimed at preventing inventory problems or clearing inventory. For example, a seasonal sale in the middle of a season designed to clear inventory before it becomes out-of-season.
Overview: Price Promotion Strategy
A plan to achieve marketing goals with price price reductions.
Related Concepts


This is the complete list of articles we have written about pricing.
Algorithmic Pricing
Bargaining Power
Benchmark Price
Price Fixing
Cost-plus Pricing
Price Gouging
Customary Pricing
Decoy Effect
Everyday Low Price
Marginal Utility
Willingness To Pay
Dynamic Pricing
High-Low Pricing
Market Value
Flat Pricing
Loss Leader
Predatory Pricing
Price Discrimination
Snob Effect
Market Price
Price Competition
Price Leadership
Premium Pricing
Price Economics
Price War
Revenue Management
Veblen Goods
Price Floor
Price Promotion
Price Sensitivity
Price Skimming
Price Umbrella
Pricing Power
Pricing Strategy
Sticky Prices
Value For Money
More ...
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Pricing Strategy

An overview of common pricing strategies.

Value Pricing

The definition of value pricing with examples.

Loss Leader

An overview of loss leaders with examples.

Marketing Management Examples

An overview of marketing management with examples.

Sales Promotion Examples

An overview of sales promotions with examples.

Cost Plus Pricing

An overview of cost-plus pricing with detailed examples.

Customer Incentives

A list of common customer incentives.


The common types of pricing.

Cost vs Price

The key differences between cost and price explained with a comparison table.

Price Promotion

A list of the common types of price promotion.

Marketing Environment

An overview of the marketing environment with examples.

Price Floor

An overview of price floors with examples.
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