Abstract

Sales promotion is a significant part of firm’s marketing activity, especially in the modern state of Ukrainian economy, when prices are growing fast and consumers are becoming more sensitive to the price changes. But firms are becoming more careful about their expenses too. So now it’s exceptionally important for firms to evaluate properly effect of the sales promotion. Nowadays not only total effect of sales promotions is the subject of scientists’ and firms’ interest but factors that contribute to it. Decomposition of sales promotion effect allows us to understand which factor is responsible for sales enhancing and what to expect in future periods. World economists are already developing the issue of decomposition of sales promotion effect. Started by S. Gupta topic is being discussed for more than 20 years. Despite of that, Ukrainian scientific literature remains silent about decomposition of sales promotion effect. There are no strict terms in scientific Ukrainian language for labeling certain basic concepts that are used in articles of foreign colleges. The aim of the article. The aim of the article is to form such terminology in order to bring broad discussion of decomposition of sales promotion effect into both Ukrainian science and practice. Following terms were considered in the paper: primary demand, secondary demand, purchase incidence, purchase quantity, cross-period effect, category-expansion effect, brand switching, store switching and category switching. The results of the analysis show that strict translation into Ukrainian is not always a good choice because of several reasons. There was discovered that some terms are already used in Ukrainian literature in different meaning. For instance, term «secondary demand» is already used in Ukrainian literature for describing demand for a product that depends on demand for other product. The same problem occurs when translating term «category-expansion effect» in Ukrainian as «category-expansion» which means firm’s activities aimed to bring to the market new product using already known brand. Other terms, although don’t seem to have different meaning in Ukrainian, can’t be translated easily without using complex phrases that are difficult to use. As the conclusion we can claim that because of the reasons mentioned above, Ukrainian scientific language requires its own terminology for discussing decomposition of sales promotion. Such terminology was proposed in the paper.

Keywords: sales promotion, economic effect, decomposition of effect, types of demand

JEL Classification: C52, М31.

Cite as: Yusupova, O. (2015). Sales promotion effect: concepts and terminology. Marketing and Management of Innovations, 2, 88-96. https://doi.org/10.21272/mmi.2015.2-07

This work is licensed under a Creative Commons Attribution 4.0 International License

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