Marketing Metrics: The Manager’s Guide to Measuring Marketing Performance, Third Edition

8. Promotion

Introduction

Key concepts covered in this chapter:

Baseline Sales, Incremental Sales, and Promotional Lift

Redemption Rates for Coupons/Rebates

Percent Sales on Deal, Percent Time on Deal, and Average Deal Depth

Pass-Through and Price Waterfall

Price promotions can be divided into two broad categories:

Temporary price reductions.

Permanent features of pricing systems.¹

With both of these, firms seek to change the behavior of consumers and trade customers in ways that increase sales and profits over time, though a promotion’s short-term ...