Seasonal Marketing Campaigns: How Elasticity of Demand Affects Your Strategy

The festive season is upon us. and many brands are all set to shoot their sales number through the roof with different types of seasonal offers and discounts. While seasonal deals are a great way to increase sales and reach new customers. The results that seasonal offers bring in are different for every niche. As a brand owner or a marketer, it is important for you to take into consideration the economic concept of "Elasticity of demand" to craft the perfect marketing strategy this festive season.

What is the elasticity of demand?

The elasticity of demand is a measure of how responsive the quantity demanded of a good or service is to a change in its price. It is calculated by dividing the percentage change in the quantity demanded by the percentage change in the price.

There are two types of elasticity of demand:

Price elasticity of demand:: This measures how responsive the quantity demanded of a good or service is to a change in its own price.

Cross elasticity of demand: This measures how responsive the quantity demanded of a good or service is to a change in the price of a related good or service.

How does the elasticity of demand affect seasonal marketing campaigns?

The elasticity of demand for a seasonal product or service will vary depending on the product or service and the time of year. For example, the demand for swimsuits is likely to be more elastic in the summer than in the winter. This means that a small change in the price of swimsuits is likely to have a larger impact on the quantity demanded in the summer than in the winter.

Marketers need to consider the elasticity of demand when planning their seasonal marketing campaigns. For example, if a marketer is selling a product with a high elasticity of demand, they may want to focus on promotional pricing strategies to increase sales. If a marketer is selling a product with a low elasticity of demand, they may want to focus on non-price strategies, such as advertising and branding, to increase demand.

A comparison of elasticity of demand: Festive apparel vs. car detailing

Festive apparel and car detailing are two products with different elasticities of demand. Festive apparel has a high elasticity of demand, while car detailing has a low elasticity of demand.

This means that media planners who are selling festive apparel during the festival season should focus on promotional pricing strategies to increase sales. For example, they could offer discounts on festive dresses or shirts, or offer bundled pricing on kurta and pyjama sets.

Media planners who are selling car detailing services during the festival season should focus on non-price strategies to increase demand. For example, they could focus on the benefits of car detailing, such as making your car look and feel new again or protecting your car from the elements. They could also create a sense of urgency by offering a limited-time discount or special package.

Tips for creating effective seasonal marketing campaigns based on the elasticity of demand

1. Identify the elasticity of demand for your product or service. This will help you to determine whether to focus on promotional pricing strategies or non-price strategies.

2. Choose the right media channels. Use media channels that are likely to reach your target audience and that are appropriate for your product or service.

3. Create a sense of urgency. Offer limited-time discounts or special packages to encourage customers to act quickly.

4. Track your results. Track the results of your marketing campaigns to see what works best for your business.

By understanding the elasticity of demand while planning your seasonal marketing campaigns you can set S.M.A.R.T goals for your marketing efforts and make the most out of this opportunity.

If you are a brand looking to scale your business with well-thought-out marketing strategies that are crafted for your specific needs. Then reach out to me at dishadokhale15@gmail.com and I can help you direct your marketing efforts in the right direction.