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Assessing promotional effectiveness
The assessment of promotional
effectiveness is captured in four areas:
- Defining promotional objectives
- Promotional production : promotion communication
internally and externally is just as essential
as the production of special packaging and promotional
products
- Timely distribution and placement of promotions
- Regular evaluation of the promotions
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Assessing promotional efficiency
It is important to identify possible efficiency
improvements in promotion execution and organization.
Improvements are possible in terms of cost reduction
or choice of alternative methods. Total costs
and revenues should be made clear to better point
out any promotion efficiencies.
Calculations include specific promotional costs
such as refunds, special packaging, displays,
trade deals and evaluation costs. Organizational
analysis focuses on the cost and efficiency of
each department involved in the making the promotion
happen, in both the manufacturer and retailer.
In addition to the analysis of the cost of the
current promotions, alternative promotions and
suppliers should be evaluated, as well as undertaking
a consideration of internal organization issues
like alternatives in personal, departmental and
trading partners responsibility and planning procedures.
The scorecard looks at the quality of internal/joint
promotion planning and evaluation.
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