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.

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.

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.