Sales Promotion Models

Harald J. Heerde () and Scott A. Neslin
Additional contact information
Harald J. Heerde: Massey University
Scott A. Neslin: Tuck School of Business, Dartmouth College

Chapter Chapter 2 in Handbook of Marketing Decision Models, 2017, pp 13-77 from Springer

Abstract: Abstract Firms spend a significant part of their marketing budgets on sales promotions. Since the impact of promotions on sales is usually immediate and strong, promotions are attractive to results-oriented managers seeking to increase sales in the short term. This chapter discusses models for measuring sales promotion effects. Part I focuses on descriptive models, i.e. models that describe, analyze, and explain sales promotion phenomena. We start by discussing models for analyzing the immediate impact of promotions and decomposing the resulting sales promotion bump into a variety of sources. Next we examine what happens after the immediate bump, and describes models for measuring feedback effects, reference price effects, learning effects, permanent effects, and competitive reactions. Next we turn to descriptive models for promotions aimed at retailers (“trade promotions”), and discuss forward buying and pass-through. In Part II we discuss normative models, i.e. models that tell the decision maker what is the best (profit maximizing) decision on sales promotion activities. We cover models for planning promotions to consumers as well as decision models on trade promotions for manufacturers, and normative retailer models for optimal forward buying and pass-through. Part III concludes this chapter with a summary, practical model guidelines, and directions for future research.

Date: 2017
References: Add references at CitEc
Citations: View citations in EconPapers (11)

There are no downloads for this item, see the EconPapers FAQ for hints about obtaining it.

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:spr:isochp:978-3-319-56941-3_2

Ordering information: This item can be ordered from
http://www.springer.com/9783319569413

DOI: 10.1007/978-3-319-56941-3_2

Access Statistics for this chapter

More chapters in International Series in Operations Research & Management Science from Springer
Bibliographic data for series maintained by Sonal Shukla () and Springer Nature Abstracting and Indexing ().