Reduce Price to Improve Revenues and Margins

CHOICE 1 OBJECTIVE: ATTRACT CUSTOMERS

CHOICE 2 SEGMENTS: INTRODUCTORY OFFER SEGMENT / DISCOUNT AN EXISTING PRODUCT TO NEW CUSTOMERS

CHOICE 3 COMPONENT: PROVIDE A FREE OR HEAVILY DISCOUNTED PRODUCT FROM A THIRD PARTY

No. SIC Year Notes
1 2721 1989 Time magazine tempts potential subscribers w/ gadgets: calculators, clocks, telephones at a cost of $125m since 1983. Newsweek gave this up and instead slashed subscription prices.
2 6021 2004 As banks intensify their focus on the consumer side of their business, they are dusting off the strategy of handing out gifts to new depositors. But this time, they are skipping the free toasters and instead offering bigger-ticket items: DVD players, flat-screen televisions, personal paper shredders and Sony PlayStations.
3 6211 1999 E*Trade, eager to remain the industry's top advertiser, was expected to spend about $300 million on advertising and other marketing programs, including promotional giveaways such as free long-distance minutes, frequent flier miles, and coupons for free trades.
4 6512 1991 Many desperate developers are covering remodeling costs and even paying tenants' moving expenses. Amenities abound, ranging from free health club memberships and shuttle buses to concierge services, free shoe shines and fresh-cut flowers.
5 7941 2008 The New Jersey Nets are giving a 10% rebate to new season-ticket buyers—in the form of a gas card.

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