What is the main goal of promotional pricing?

The main goal of promotional pricing is to increase short-term sales. This strategy involves temporarily reducing prices to attract customers quickly, often during a specific period or campaign. By offering discounts or promotional deals, businesses aim to boost sales volume and draw in consumers who may be more price-sensitive or who are looking for a good deal.

Promotional pricing can also stimulate demand for new products or clear out inventory for older ones, creating a sense of urgency that encourages customers to make purchases they may not have otherwise considered. This approach often works well during festive seasons, clearance sales, or when launching new products, allowing businesses to capitalize on these opportunities to enhance immediate sales figures.

In contrast, increasing brand loyalty is typically achieved through consistent branding and customer engagement strategies rather than short-term price cuts. Undermining competition may be a byproduct of aggressive promotional pricing strategies but is not the primary focus. Similarly, while companies aim to maximize profit overall, promotional pricing is more focused on generating immediate sales rather than long-term profit maximization.