Question

Topic: Research/Metrics

Measuring Effectiveness Of A Promotional Campaign

Posted by Anonymous on 25 Points
Hi all i am working in a watch company,i want to know the methodology of measuring effectiveness of a promotional campaign.I am doing promotions for the large format stores(big retailers like lifestyle etc) channel only,and hence want to measure effectiveness of the promotions done in this channel only.
Can someone suggest me some quantitative & qualitative parameters evaluate effectiveness of the promotions.
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RESPONSES

  • Posted by Dawson on Accepted
    Qualitative I can't comment on. Questionnaire design is important but it is worthwhile assessing what people's views are of the promotions.

    Re quantitative, there are some basic ways of assessing the effectiveness of the promotion and some more complex ways.

    For example, you can look at "year on year" performance improvements, improvements in performance vs stores without this promotion and maybe benchmark with other friendly retailers.

    If the promotions are attached to specific categories or items then the effectiveness of the promotion is slightly more complex because you need to look at the opportunity cost of not having run the promotion - in other words try and assess the cannibalisation that the promotion generates to the existing business, the "base sales" that would have otherwise been achieved on the items in question and the "post promotion" dip if any occurs.
  • Posted on Author
    Hi dawson and balnalytics,thanx for your answers, you actually have answered all my queries

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