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Author:Jones, J. P.
Title:The double jeopardy of sales promotions.
Journal:Harvard Business Review
1990 : SEP-OCT, VOL. 68:5, p. 145-152
Index terms:SALES PROMOTION
COSTS
ADVERTISING
Language:eng
Abstract:The stagnation of most consumer markets in the USA has induced manufacturers to search new ways for growth. They have shifted emphasis to sales promotions at the expense of advertising. But promotions mean price reductions. Trade promotions are always rebates, and consumer promotions are usually temporary price reductions or coupons. The cost in reduced profit is severe. In addition, promotions bring volatile demand, while the producer seeks stable demand. In a well-planned marketing campaign, there is often good reason to include trade or consumer promotion, e.g., to counter a leading competitor's moves. Mathematical methods can aid in planning and efficiency of marketing campaigns and promotions.
SCIMA record nr: 82664
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