The Journal of Research in Marketing (JORM) recently published a paper by TABS Analytics' founder Dr. Kurt Jetta on the impact of retailer price promotions (trade promotions). Key highlights from the paper include:
- Complete Category Expansion Effects (CCEE) can be created from incremental sales derived from retailer promotional spikes.
- These CCEEs come from very small reductions on spending from every other good considered for purchase in consumers' discretionary incomes.
- When properly executed, trade spending drives incremental sales for consumer packaged good manufacturers and retailers alike.
JORM is a peer-reviewed, interdisciplinary marketing journal committed to publishing scholarly research articles, empirical or theoritical, that impact all disciplines of marketing. Its primary goal is to develop, promote and coordinate marketing theory, research and practice and bring together both academicians and practicing managers.