The basic assessment of sales promotions reveals the impact of the promotions on sales, revenue and profitability. It does not however answer a number of critical questions, including the ones listed below:
Econometric promotions response models yield answers to the first five questions posed above, and the remaining question can be addressed by retail analytics.
The outline of the econometric promotions models, in terms of inputs and outputs, is shown in Exhibit 17.8. These models analyse data to establish the impact of each individual element of a promotion on sales. The sales response functions derived from these models yield estimates of discount elasticity of demand, discount cross elasticity of demand, and sales lifts due to displays, co-op advertising and other causal factors. It is possible to decompose sales into all of the elements contributing to the volume. Promotion response models can also forecast what impact a possible combination of initiatives will have on sales. These econometric modelling methods are covered in some detail in the chapter Market Mix Modelling.
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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.