Striking a balance: Marketers on navigating the price promotion ‘tightrope’
Price promotions can be dangerous if overused, but done right they are an important part of any brand’s growth toolkit.
Driving sustained growth requires marketers to use every tool at their disposal. While tools like investment in brand and innovation are generally considered universally good – so long as your company can afford them – price promotion is typically seen as a more risky tactic.
Promotions and discounting have been likened to a “drug” by Marketing Week columnist and Mini MBA professor Mark Ritson, due to their addictive nature. Utilising price promotions will drive short-term sales, but can undermine long-term goals and risk getting companies hooked on the “high” they provide.
Navigating promotional dynamics can be like walking a tightrope, says KP Snacks marketing director Kevin McNair. Promotions can work to drive more attention on the shelf, or drive consideration.
