Depending upon the industry sector, promotional budgets are often larger than marketing budgets and can be difficult to measure for many reasons.  In order to understand promotional effectiveness you need to be able to understand how much of the investment actually drove incremental sales versus those that would have happened regardless of the investment.

Successful promotions have the ability to pay for themselves while unsuccessful campaigns can have adverse effects on both profitability and brand equity.  The questions of timing, depth and length of discount, frequency of promotion, inventories and a variety of other items come into play, including the impact of marketing, operational and product investments.

MMA’s approach to understanding and optimizing promotion effectiveness applies a rich and holistic set of commercial data spanning not only promotional data, which includes:

  • Pricing depth and frequency
  • In-store display and shelf
  • Assortment
  • Advertising
  • In-store banners and other marketing
  • Couponing
  • Loyalty and shopper incentive programs
  • Special packs
  • Special in-store events
  • Local marketing programming and events

But also factors in relevant data sets including marketing, weather, seasonality, competition, sales force, operational and macro-economic factors.

MMA’s commercial effectiveness platform combined with promotional effectiveness analysis supports key findings that can help organizations optimize their promotional investments by providing insights into the following areas:

  • What combinations of promotions and marketing (traditional, digital, consumer) programs work best together?
  • How do individual customer segments respond to the various promotional programs and activities?
  • What is the short term versus long term impact of promotions?
  • How can I optimize my promotional mix within the context of my sales and marketing plans?
  • What is the optimal depth of discount and frequency for promoting specific products?
  • What is the cannibalization effect of promotions on other brands?
  • What is the true incremental sales and impact on profitability of my promotional strategy and tactics?
  • What is the impact on forward-buying and/or cannibalization?
  • What types of promotions are most effective for driving sales, share and/or profitability and to what levels?
  • Which products and brands should I promote most frequently and where in order to achieve my financial objectives?
  • How do specific markets react to promotion types and activities? What should the frequency of promotion be in specific markets?

MMA provides a holistic combination of data management, analytics and high-value consulting to help organizations develop and implement more effective, efficient and productive promotional strategies and tactics in conjunction with their overall commercial effectiveness programming.