O'Reilly logo

The Definitive Guide to Marketing Analytics and Metrics (Collection) by David Reibstein, Phillip E. Pfeifer, Neil Bendle, Ronald T. Wilcox, Paul Farris, Rajkumar Venkatesan, Cesar Brea

Stay ahead with the world's most comprehensive technology and business learning platform.

With Safari, you learn the way you learn best. Get unlimited access to videos, live online training, learning paths, books, tutorials, and more.

Start Free Trial

No credit card required

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 effect on profits will often be negative. There are multiple routes to sales and profit growth and many potential reasons for offering price promotions. Such programs might be aimed at affecting ...

With Safari, you learn the way you learn best. Get unlimited access to videos, live online training, learning paths, books, interactive tutorials, and more.

Start Free Trial

No credit card required