Introduction
Some companies have an inherent understanding of discounting and promotional strategies. These companies are able to create a strong sense of value for their products and services, even when they are on sale. Their customers feel thankful when they get a given product or service at a low price, yet they still see great value in the brand and would indeed pay more for the product or service in the future.
Other companies, however, struggle with the concept and execution of discounting and promotional strategies, and thereby end up devaluing their brands with each communication and sale. Poorly planned and executed online discount promotions can come off as desperate fire sales that forever scar a brand's reputation in the eyes of consumers. One-time sales very well may become permanent price cuts when companies realize that their customers will no longer tolerate their regular pricing.
In this article, we'll take a closer look at why companies discount their products and services. We'll also review several examples of companies that promote their discounts online without harming their brands.
