Push promotions are a method that focuses on the supply chain and offers incentives to get the product in front of the consumer rather than creating demand to pull the product through this supply chain (Bendle et al. 2016).
When using this method of promotion there are some key metrics (or measurements) that Bendle et al. (2016) identifies as being most relevant for this style of promotional activity.
Percentage of sales on deal seeks measure how dependant an organisation is on their promotional efforts (Bendle et al. 2016). This could reveal that an organisation doesn’t require promotional activities and that the supply chain is willing to pay full price for the product, informing the organisation of potential missed profits.
Pass-through is a metric that focuses on how far down the supply chain are the promotional activities carrying i.e. are customers receiving the benefits of the promotional activities or are the retailers absorbing all of the perks at their level (Bendle et al. 2016). The most effective marketing efforts will see the promotional activities benefit all levels of the supply chain right down to the customer.
Finally, price waterfall measures a similar thing to pass through but breaks down each step to identify the percentage that each level of the supply chain benefits from the promotional activity (Bendle et al. 2016). This metric can be of particular usefulness to identify the most effective channels and allow the organisation to shift their focus to other channels they may not have been utilising enough.
References:
Bendle, NT, PW Farris, PE Pfeifer & DJ Reibstein (2016) Marketing Metrics: The Manager’s Guide to Measuring Marketing Performance, 3rd edition. Pearson: New Jersey.
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