What-if Analysis — Market Response Modelling


What-if Analysis - Promotions Response Modelling

Exhibit 17.18   What-if analysis for price discounting. (Promotions planning simulator.)

The output of a market model is a set of equations that spell out the relationship between sales and the variables of the marketing mix. With these equations one can predict what will happen if changes are made to the mix variables.

Exhibit 17.18 provides an example of a “What-if” analysis tool to simulate the impact of price discounting. By changing the discounts in “Discount Price” column the user is able to see how those discounts will affect the sales volume and sales value, for the items in the category. 


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