Measurement and evaluation of retail promotions

[摘要] Promotions involve a complicated interplay of factors and are a result of a synchronized sequence of activities between manufacturers and retailers. The outcome of promotions pivot on several elements beyond the control of any one party in the supply chain. ;;How;; a promotion performed has a more straight forward answer than ;;Why;; a promotion performed a certain way. This research attempts to define a quantitative methodology to measure performance of promotions and reveal insights to consumer product manufacturers and retailers that will help answer the ;;How;; and the ;;Why;; of promotions. The measures used are simple, but the combination of analysis creates a complex structure of many dimensions that reveals intricate insights into the functioning of the supply chain, the most important asset in executing promotions. We present to you a three dimensional framework termed the ;;Promotion Performance Cuboid;; with structural elements consisting of three foundational supply chain measures, inventory, stockouts, and performance of sales against target forecasts. The measures when viewed together through the Promotion Performance Cuboid, tell a revealing story of the underlying dynamics of promotions and the elements that actually control promotional become lucid.

[发布机构] Massachusetts Institute of Technology