WHEN DO PRICE PROMOTIONS MAKE SENSE

Scott Davis

No 279599, Promotion in the Marketing Mix: What Works, Where and Why, April 28-29, 1994, Toronto, Canada from Regional Research Projects > NECC-63: Research Committee on Commodity Promotion

Abstract: Price promotions are frequently used to increase the sales volume of a product. however, it is not always true that price promotions increase profits. This paper summarizes key factors that make price promotions profitable for retailers and Manufacturers. There can be some significant problems with the implementation of effective price promotion policies due to conflicting incentives of manufacturers and retailers. The conditions under which promotions are the most attractive to the Manufacturers are often the conditions in which retailers are least likely to provide suPPort for the promotion, and vice versa.

Keywords: Demand and Price Analysis; Marketing (search for similar items in EconPapers)
Pages: 19
Date: 1994-04
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Persistent link: https://EconPapers.repec.org/RePEc:ags:rr6394:279599

DOI: 10.22004/ag.econ.279599

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