Navigating the pitfalls of product promotion

Published on May 29, 2024

Look at Black Friday promotions, and you will notice a troublesome trend. Retailers offer everything from Kindles to vacuum cleaners and bed linens at increasing discounts. Even more troubling is that Black Friday is not an exception. It is just a better-marketed and publicized version of what happens daily in retail.

This article discusses handling this “Prisoner’s Dilemma” and highlights the top four traps retailers fall into with their promotions. 

The challenges with product promotions

Retailers are locked in an intricate, high-stakes prisoner’s dilemma. Heavy discounting and promotions are hit-or-miss, profit-draining activities. But paradoxically, no retailer can afford to stop them. 

On the surface, neither option in the retailers’ prisoner’s dilemma looks attractive. Imagine a world where every day is Black Friday, and even Walmart can’t get…

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