MKT 300 Chapter Notes - Chapter 8: Diminishing Returns

• School: Ryerson University
• Department: Marketing
• Course: MKT 300
• Professor: Armand Gervais

Document Summary

8. 1: baseline sales, incremental sales, and promotional lift. Estimates of baseline sales establish a benchmark for evaluating the incremental sales generated by specific marketing activities. This baseline also helps isolate incremental sales from the effects of other influences, such as seasonality or competitive promotions. Total sales ($,#) = baseline sales ($,#) + incremental sales from marketing ($,#) Incremental sales from marketing ($,#) = incremental sales from advertising + Incremental sales ($,#) = total sales ($,#) baseline sales. Total sales can be analyzed or projected as a function of baseline sales and lift. Profitability of a promotion ($) = profits achieved from. Promotion ($) estimated without promotion (baseline) ($) The baseline is the level of sales that can be expected without significant marketing activities. It is common to measure sales performance against historic data: sets the historic sales as the baseline level for analysis of the. It is common practice to adjust the profitability of promotions for longer term effects.