Promotional pricing

Strategies, Advantages, and Disadvantages

In the dynamic landscape of global markets, promotional pricing has emerged as a prominent strategy for businesses aiming to boost sales, attract customers, and enhance brand visibility. This article explores the concept of promotional pricing, its significance in marketing, and the role it plays for international brands. Additionally, we will delve into the design of promotional pricing campaigns for offline and online channels, the measurement of advertising campaign success, and the assistance provided by GfK in improving promotional pricing strategies.

What is promotional pricing?

Promotional pricing refers to a marketing strategy whereby businesses temporarily reduce the prices of their products or services to stimulate demand, increase sales volume, and gain a competitive advantage. This strategy is typically employed for a limited period and can take various forms, such as discounts, coupons, rebates, bundle offers, or buy-one-get-one-free promotions. The primary objective of promotional pricing is to entice customers, create a sense of urgency, and encourage immediate purchase.

SP_Sales and Market Growth_Pricing and Promotion_IN Depth

The psychological tactic: Using promotional pricing to drive sales

Companies strategically utilize promotional pricing as a psychological tactic to influence consumer behavior and drive sales. By offering discounted prices, businesses tap into the innate desire for bargains and create a perception of value for the customers. Moreover, promotional pricing can alleviate consumer fears of product shortages, especially during times of uncertainty or high demand. Companies use this strategy specifically to strengthen customer loyalty, to gain customers' trust and to persuade them to buy.

A second reason to use price reductions as a strategic tool is competition. Companies expand their market share through targeted campaigns. In extreme cases, long-term promotional pricing even ensures the consolidation of the market. For example, years of price wars with discounts and special offers had a strong impact on travel companies and airlines.

The role of promotional pricing for international brands

Promotional pricing holds a crucial role for international brands seeking to expand their presence and attract a diverse customer base. Whether selling offline or online, companies must carefully design their promotional pricing campaigns to effectively cater to different markets and consumer preferences. With the internet enabling global price research, businesses face the challenge of offering competitive prices while maintaining profitability. This section examines the considerations for international brands and highlights the importance of targeted pricing and measuring the success of advertising campaigns.

Measuring advertising campaign success with targeted pricing

To measure the effectiveness of promotional campaigns with targeted pricing, companies use various metrics and analytical approaches. Key performance indicators (KPIs) can be used to assess the impact of price promotions on sales, customer acquisition and brand loyalty. Measurement tools here are not just sales figures. In the online marketing segment, website visitor numbers and checkouts provide important insights into success.

By analyzing all data and consumer insights, companies can refine their pricing strategies and continuously optimize future advertising campaigns.

Improving promotional pricing strategy with GfK

As a leader in market research and consumer insights, the GfK offers valuable resources to businesses seeking to enhance their promotional pricing strategies. The GfK Consumer Price Lab provides comprehensive insights into pricing dynamics and market trends, enabling companies to make informed decisions and optimize their promotional pricing strategies. Additionally, the GfK Daily Pricing Monitor empowers businesses with real-time pricing intelligence, helping them stay competitive in dynamic markets. This provides you with important first-hand market data to further expand your business success.


Promotional pricing has become an integral part of the marketing arsenal for businesses worldwide. By employing this strategy, companies can attract customers, increase sales, and enhance brand visibility. However, promotional pricing must be implemented with care, considering both the advantages and disadvantages it entails. With the assistance of market research and pricing solutions like those provided by GfK, businesses can refine their promotional pricing strategies, achieve their marketing goals, and thrive in the global marketplace.

To gain valuable insights into pricing dynamics and enhance your promotional pricing strategy, explore the following GfK products:

GfK Consumer Price Lab: Visit to access comprehensive insights and market trends that will empower your pricing decisions.

GfK Daily Pricing Monitor: Stay competitive with real-time pricing intelligence from the GfK Daily Pricing Monitor.