Retailers: Do you need to choose between investing 1€ in granted discount in promotion/markdown or 1€ in marketing spend?
November 23, 2022 | Juha Nuutinen
Actually, our experience has shown us that this is not a choice retailers need to make. We compared our customers from the FMCG industry with the ones from the Retail industry. This made us realize that for the FMCG companies, there is a real choice whether to invest 10,000£ in a trade promotion campaign with Tesco or 10,000£ in airing a TV commercial. Therefore, for FMCG companies trade promotions, shopper marketing and marketing spend are real options to each other, and MMM helps in prioritizing how much of the total budget to invest in trade promotions vs. media. However, we did not notice the same dynamic for Retailers.
Sellforte can help you optimize your marketing spend & promotions/markdowns with a tool that analyzes the effects of both in a single model. Try it out here!
For more information we recommend this blog post: Marketing Measurement: should promotions, markdowns & marketing spend be optimized together or separately?
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