Special event pricing is not always implemented with an objective to drive sales for a business organization; rather, sometimes, an enterprise uses it to deliver brand recognition and awareness among the general market. This increased awareness not only helps a business organization to increase its customer base but also provides satisfaction to their existing customers as they start visualizing more value in the companyâ€™s products. It also promotes word-of-mouth advertising of the company and its products, as it is often observed that customers tend to share lucrative, special, and limited period schemes to their relatives, friends, and colleagues. This helps an organization to increase sales as well as grab a higher market share. Usually, special event pricing is adopted and implemented during these times:
Festival and Special Days: Festivals, such as Christmas, Halloween, etc., and special days, such as Memorial Day, Independence Day, Lincolnâ€™s Birthday, etc., are celebrated and enjoyed by the entire country. During these days, prices are usually kept lower than usual.
Seasonal Sale: The start or end of major seasons such as summers, springs, and winters are also used as special events.
Specific Days: During the part of the year without any major festival or buzz, business organizations themselves announce a few specific days on which the customers would be able to get special prices on the products.
Benefits of Using Special Event Pricing
Business organizations prefer to offer discounts during special events, as it brings them a variety of benefits, such as:
Enables to Capture Momentum: During festivals as well as on holidays, usually, the entire country is in a celebration mode, with moods swung toward buying goods or availing services. It is easier during these times to capture their attention by offering deep discounts upon the products and services. By special events, an organization basically tries to capture the momentum or energy generated and directs it towards making buying decisions.
Instant Satisfaction to Customers: Money is the biggest motivator for humans, and their satisfaction levels vary in and around it. By pricing the product at a lower than usual rate, the customers tend to enjoy the benefits of special prices, giving them immense satisfaction and value from their purchase.
Challenges Faced Upon Using Special Event Pricing
Despite being widely used by several business organizations across the world, there are several challenges and issues that arise upon the usage of special event pricing as a marketing strategy, such as:
Attracts Customers with Lower Loyalty: Any discount from the usual price would undoubtedly attract customers. During festivals, holidays, or any other special event sale, usually those customers have attracted that value money more than quality and loyalty. They might purchase the companyâ€™s products at any particular event and easily switch over the rivalâ€™s in any other special event.
Develops Trust Issues: Frequent use of special event pricing can prove detrimental to the overall goodwill and reputation of the business organization in the consumer market. At some point in time, the customers would simply refuse to believe the high prices of the products, as they would perceive it to be of a lower value and price.
Risky Strategy: Special event pricing is a high-risk strategy as there are higher chances that a business organization can sustain losses due to such an act. This can prompt the customers of the organization to wait for any specific special event and postpone their purchases till then. Frequent selling of goods at special prices would not only contribute towards losses but also severely affect the financial position of the company.
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