Evaluation of the effect on the promotion of standards and methods

Promotions: in short, sales promotion, it includes most of the short-term stimulus tool belongs to. Mainly used to stimulate consumers or channel more rapid, more to purchase a particular product or service. In the increasingly competitive market, the promotion has become a common means of operational staff, is also important for the survival of their chips. However, the assessment of the effectiveness of promotions is that managers very headache. As the industry's popular: 80% of advertising only produces 20% of the role, another 20% but up to 80%, 20% of what is the key, no one can say that it is not clear, promotional resources. According to the author of hands-on experience, promotional evaluation method has the following main categories: a, input-output ratio evaluation of input-output ratio mainly reflect promotional investment and sales output balance, namely the sales unit of input. Formula: promotional costs ÷ promotions-output example: for development, b two markets, Sales Director decided on these two markets have put 2 million organizations in a promotional activity, carefully-crafted, post-implementation:? Realization of market of the month, 20 million sales for input-output ratio: 2 million ÷ 20 000 = 10 per cent? B market month for 12 million sales, input-output ratio: 2 million ÷ 12 000 = 16.67%? From input-output ratio, a market promotion than b market input-output ratio evaluation method of advantages: simple, intuitive disadvantages: too broad to reflect promotional resources inside the actual use of results. Usage: there is no market base, or very weak market base, restart the market and new product introduction phase. Second, sales return ratio evaluation method for incremental sales incremental return on investment than mainly reflecting sales and sales growth of the balance, i.e. the unit into the sales growth. Formula: 1-(sales promotion costs for the sales and after sales ÷ difference) case study: a, b two market monthly sales in 15 million, respectively, around 5 million, with a view to enhancing the performance of sales guest decided on each market are invested $ organizations a promotion. After a carefully planned and implemented: Realization of market of the month, 20 million sales than the incremental return: 1-2 ÷ (20-15) = 60%? B market month for 12 million sales, incremental return ratio is: 1-2 ÷ (12-5) = 71.43%? From incremental return ratio, b market promotion than a market. Return on sales compared with assessment method increments: reflect promotional resources on sales growth contribution of disadvantages: not reflect sales for the enterprise profit contribution apply: each market maintenance, market development, such as blocking, depth, apply to a single product or product gross profit margin, the difference is not great promotions. Third, the benefits of incremental return incremental benefit than assessment method returns than assessment method mainly reflecting sales resources on the enterprise benefits of incremental contribution. Principal amount by Maori. The unit of input received by the sales margin growth. Formula: 1-(sales promotion costs and gross profit/sales margin) example: a company with A, B, C, D, E, F, six varieties of various product gross profit margin: 15%, 18%, 20%, 60%, 40%, 10%. A, b two market original sales base of 15 million, 5 million. Similarly invested $ cost promotion, the results are as follows: