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Chapter 8

MKT 300 Chapter 8: MKT300-Chapter8


Department
Marketing
Course Code
MKT 300
Professor
Armand Gervais
Chapter
8

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MKT 300
Chapter 8: Promotion
8.1: Baseline Sales, Incremental Sales, and Promotional Lift
Baseline Sales: expected sales results, excluding the marketing programs
under evaluation
Total Sales ($,#) = Baseline Sales ($,#) + Incremental Sales from Marketing ($,#)
Separating incremental sales into portions attributable to the various
marketing activities used to generate them:
Incremental Sales ($,#) = Incremental Sales from Advertising ($,#) + Incremental
Sales from Trade Promotion ($,#) + Incremental Sales from Consumer Promotion
($,#) + Incremental Sales from Other ($,#)
OR
Incremental Sales ($,#) = Total Sales ($,#) Baseline Sales ($,#)
Lift (%) = Incremental Sales ($,#) / Baseline Sales ($,#)
Cost of Incremental Sales ($) = Marketing Spending ($) / Incremental Sales ($,#)
Additive model:
Total Sales ($,#) = Baseline Sales + [Baseline Sales ($,#) x Lift (%) from
Advertising] + [Baseline Sales ($,#) x Lift (%) from Trade Promotion] + [Baseline
Sales ($,#) x Lift (%) from Consumer Promotion] + [Baseline Sales ($,#) x Lift (%)
from Other]
Multiplicative model:
Total Sales ($,#) = Baseline Sales ($,#) x (1 + Lift (%) from Advertising) x (1 + Lift
(%) from Trade Promotion) x (1 + Lift (%) from Consumer Promotion) x (1 + Lift
(%) from Other)
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