Wednesday, June 08, 2011

Discounting as a Marketing Strategy

Discounting as a Marketing Strategy

Dear Tom: I have a new photography business. My framed portraits typically go for $800, but to bring in new customers I would like to offer a special promotional price of $300. Do you think I will get new customers from this?image

Dear Reader: I am going to answer your question with a few questions. Who is your target market? What is their income level? Are discounts important to your target market? Will this promotion attract your target market or just one-time customers who want to take advantage of your deal? Answering these questions yourself will help you answer your own question.

If you have any marketing questions, please send them to me. In each issue of Under the Oak Tree, I will respond to reader questions.

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