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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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