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Why Use Loss Leaders - Higher Business Management - Marketing
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Why Use Loss Leaders - Higher Business Management - Marketing

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Why do companies sell certain products at a loss?

Why do companies sell certain products at a loss?

This is a marketing strategy and one that you need to know for Higher Business Management!

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  • Very interesting ppt. The research indicated PPT only contains 30% of information; therefore the 70% valuable information comes from the presenter himself/herself. soEZLecturing.com provides you a chance to record your voice with your PowerPoint presentation and upload to the website. It can share with more readers and also promote your presentation more effectively on soEZLecturing.com.
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    Why Use Loss Leaders - Higher Business Management - Marketing Why Use Loss Leaders - Higher Business Management - Marketing Presentation Transcript

    • Why use loss leaders? Higher Business Management Visit: www.mrmcgowan.blogspot.com
    • Loss Leader
      • A loss leader or leader is a product sold at a low price (at cost or below cost) to stimulate other, profitable sales.
      • OR
      • A business strategy in which a business offers a product or service at a price that is not profitable for the sake of offering another product/service at a greater profit or to attract new customers. This is a common practice when a business first enters a market; a loss leader introduces new customers to a service or product in the hope of building a customer base and securing future recurring revenue. 
      • Brings customers into the shop to buy the products.
      • Customers then buy other products which are normally priced.
      • Profits are made on the whole amount a customer purchases
      • Creates customer loyalty as customers don’t go to competitors shops.
      • Can be used in a marketing campaign.