Price and promotion together

Promotion shapes the price customers expect to pay. An advert, social media post or in-store display is often the first time someone sees a product, so it creates an impression of its value before they check the price.

If the actual price does not match that impression, customers can be put off buying. A polished campaign that suggests something special can make a very low price feel confusing, while a cheap-looking promotion can make a high price feel too expensive. The customer may decide the product is overpriced or that the advert was misleading.

Match the promotion to the pricing strategy

The pricing strategy should influence the style of promotion. A premium-priced product suits high-quality, well-designed promotional material that supports a premium image. A low-priced product suits simple, low-cost promotion that keeps costs down and communicates value for money.

For example, a mobile phone repair shop charges £120 for a screen repair and £12 for a battery health check. The £120 repair is promoted with close-up photos of the repair bench, a short video of a technician fitting a screen and a clear written explanation of the 12-month guarantee. The £12 check gets a small counter card with a bold price. Each promotion matches its price: the detailed material shows why the repair costs £120, while the simple card makes the £12 check an easy, low-risk purchase.

Price and promotion should therefore tell the customer the same story. When the promotion creates the right expectation and the price fits it, customers are more likely to see the offer as believable and fair.