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Promotion Effectiveness
Definition
A measure of how well a promotion achieves its intended objectives, such as driving incremental sales, increasing volume, or improving ROI. Promotion effectiveness evaluates both the impact and efficiency of promotional activity.
How It's Calculated
Varies by methodology; commonly assessed using metrics such as incremental sales, lift, percent incremental, and ROI
Example
A snack brand evaluates promotion effectiveness by analyzing incremental sales and ROI, determining that a feature & display program delivered stronger results than a price reduction alone.
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