Bendle et al. (2106) identifies 2 key considerations that should be made when evaluating a sales promotion campaign.
The first aspect is the financial component, it must be ensured that the price reduction of the sale or offering is offset by the increase of sales volume and the organisation is not put into a negative position (Bendle et al. 2016).
The second key consideration is a significant long-term component. The market position of the firm can be altered as a result of sales being too frequent or too extreme, it can cause the consumer to view the product or brand as lesser (Bendle et al. 2016).
This can have a flow on effect to increasing peak sales time and decreasing in off-peak periods which may need to be considered when taking stock or planning for revenue predictions.
This can be seen in brands like Unilever and P&G as they have reduced the frequency of their sales to protect their brand and product’s image (Bendle et al. 2016).
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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