Promotion–Commotion–Demotion


Exhibit 27.6   Sales of a major brand reflecting the impact of promotions.

Recurring promotions encourage consumers to lie in wait for attractive deals, and maintain high pantry stock. Highly attractive promotions entice consumers to stockpile for future consumption resulting in post promotion losses — i.e. dip in baseline or regular sales in the weeks immediately succeeding the promotions. Baseline sales are also affected by the intensity of promotional activities. For instance, reflected in Exhibit 27.6 is a declining trend in the baseline as the intensity of promotions increases over the course of the year.

Losses on account of cannibalization compel competing brands to strike back. As competitors get drawn into the battle ground of promotions, brands retaliate in quick succession creating commotion in the market place.

The growing incidence of promotions heightens their awareness in people’s minds, and induces brand switching. The resulting erosion of brand loyalty leads to the demotion of brands. And as brands vitiate, the market heads towards commoditization.

Theoretically if no brand promotes it is a “win-win”. In reality however new brands need to promote to induce trial, and established brands promote to continue to attract new or lapsed consumers as well as retain and reward existing consumers. If they do not promote, they land on the “lose” side of the fence in a “win-lose” situation. And so the vicious cycle of promotion–commotion–demotion becomes the reality of a competitive marketplace.

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Promotions Evaluation

Promotions Evaluation

Automated online solution for analysis of promotions.


What they SHOULD TEACH at Business Schools

What they SHOULD TEACH at Business Schools


Is marketing education fluffy too?


Experiential Learning via Simulators | Best Way to Train Marketers

Experiential Learning via Simulators | Best Way to Train Marketers


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.


Online Apps for training on Promotions

Online Apps for training on Promotions


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.