Promotions are a crucial element of the marketing mix. They contribute to a large proportion of total sales for most product categories, and help to build brand awareness, engage with customers, and foster brand loyalty.
But how effective are promotions? Considering that the proportion of on-promotion sales is so high, one would imagine that manufacturers can barely afford not to evaluate their impact.
This chapter provides an overview of the various types of trade and consumer promotions, emphasizes the importance of evaluating and rationalizing them, and discusses the metrics and techniques used to evaluate their effectiveness. It presents an elementary approach for assessing promotions in terms of volume, value, and profit gains. It also explores the concept of market modelling for promotion evaluation, and outlines the essential structure of such models.
While this chapter covers the metrics, analysis, applications, model validity and fitness tests, and watchouts and guidelines, Volume IV’s Marketing Mix Modelling chapter goes into the details of econometric-based techniques for evaluating promotions.
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In an analytics-driven business environment, this analytics-centred consumer marketing workshop is tailored to the needs of consumer analysts, marketing researchers, brand managers, category managers and seasoned marketing and retailing professionals.
Automated online solution for analysis of promotions.
Is marketing education fluffy too?
Marketing simulators impart much needed combat experiences, equipping practitioners with the skills to succeed in the consumer market battleground. They combine theory with practice, linking the classroom with the consumer marketplace.
The Plannogrammer is an experiential learning facility for category managers, trade marketers, and retailers in consumer markets. Ideally suited for hybrid learning programmes, Plannogrammer imparts hands-on training in the planning and evaluation of promotions and merchandising.
It supports a collection of simulation and analysis platforms such as Promotions and Space Planner for optimizing space and promotions, Plannogram for populating shelves and merchandising, a Due To Analysis dashboard that decomposes brand sales into the factors driving sales, and a Promotion Evaluator to evaluate the volume, value and profit impact of promotion plans.