Thursday, February 11, 2010

Promotional Pricing

This Sears ad is an excellent example of promotional pricing. According to Kotler, promotional pricing occurs when "companies will temporarily price their products below the list price and sometimes even below cost to create buying excitement and urgency" (p. 277). This particular Black Friday ad illustrates special-event pricing, which is intended to attract customers during a certain time (in this instance, during the holiday season).

The sense of urgency is apparent because the ad explicitly states that the doorbusters will only be going on from 4 AM to noon on the Friday after Thanksgiving. In addition, the ad shows a variety of sales that Sears planned to have, including $9.99 pair of jeans and $79.99 diamond bracelets. These low-priced items are intended to draw customers in to purchase the items as quickly as possible, and judging from the lines outside of Sears on Black Friday this past year, the company's marketing seemed to be quite effective.

Karlyn Kurokawa, Section E

1 comment:

  1. You sharing a really very valuable article on promotional pricing. I would like to read your blog and it's very informative summary for me. and also good for those people who have been interested in promotional pricing and product.

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