Which pricing strategy offers special low prices to gain market share or sell off excess stock?

Promotional pricing is a strategy that involves offering special low prices for a limited time to encourage consumers to purchase a product. This approach is often used to gain market share, especially when a company wants to attract new customers or to quickly sell off excess inventory. By reducing prices temporarily, businesses can create a sense of urgency, prompting consumers to take action and make a purchase before the special pricing ends.

For instance, during promotional periods such as seasonal sales or grand openings, companies may significantly decrease their prices to draw in customers. This can be particularly effective in competitive markets where attracting customer attention is crucial for increasing market share and enhancing sales volume.

While loss leader pricing can also involve low pricing to draw customers, its primary focus is to attract customers in hopes of selling them additional products at regular prices, rather than simply moving excess stock or aiming for market share growth. Other strategies like price skimming and branding have different objectives, such as maximizing profits from early adopters or establishing a brand identity, respectively.