Measuring the Effect of Promotional Marketing

How to Measure the Effect of Promotional Marketing
Jairaj B. Jatar, Business Consultant, India
Joanna, there are number of things that need to discussed BEFORE you can begin the measurement. Nearly all of them involve experimental design in which you need pre-promotion data against which the post-promotion results have to be compared.
In a retailing environment where scanner data is available, your task will be to assess sales volumes of promoted brand and competition.
In other situations you will have to conduct a primary study. Write to me for more details. Regards.

The Effect of Promotional Marketing on Diversification
Joan Go, Student (Other), Hong Kong
@Jairaj B. Jatar: Thank you for your reply!
The question I have set for myself is essentially asking how successful the promotional marketing of a new product was in aiding the diversification of a company. I was thinking of simply looking at the profit made versus costs of this new venture, and conducting primary research to see how it has affected brand image and overall sales. (I'm afraid there is no pre-promotional data as it is a new product.) Thoughts?

The Effect of Promotional Marketing on Diversification
Jairaj B. Jatar, Business Consultant, India
@Joanna Tan: Joanna, I still feel you need primary research in the form of experimental design.
I have assumed there is a market already in existence for products like the one you wish to introduce. You will need a "simulated test market" (or STM) study to be conducted. The target group for the study will be regular consumers of the product.
Maybe, you could also include those who lapsed out of the category (these could be a secondary target group). The questionnaire will have to first establish existing consumption and brand preference. You will then have to introduce a Concept Card that describes your product, and obtain reactions to it.
If your product is a consumable product then you should have consumers try it out, and then collect reactions again.
Your analysis will revolve around the proportion that reacted positively to your concept and product experience. If the proportion is large then you could say your diversification is likely to be successful. Regards.

Effectiveness of Promotional Program
Soma Sinha Roy, Professor, India
The measurement will be preceded by determining the promotional objectives that the organization intends to fulfill. This has to be followed by a feed forward control system to identify the area of understanding vividly. Once the promotional plan is executed a feedback session will enable to determine the success or failure of the program. Thus it will help in casting a true picture regarding the effectiveness of the promotional program.