Question

Your boss tells you that during a promotion that was run during the first week of July, sales were up 23 percent since the last week of June and 50 percent since the same week of the prior year. What is the implied causal statement? What might your boss be assuming? How would you assess the plausibility of those assumptions? What type of strategy might do a better job of isolating the causal effect of the promotion?

Answer 1

A sales promotion is a marketing technique used by retailer to drive sales. Promotion are almost always a part of sales and marketing mix if the sale increases it help to move inventory. Many of the people think that running promos will help them to improve their sales and putting a sign on the board as SALES on Window or Doors. As the Boss told that during promotion that was running during the first week of July sales were up to 23% since the last week of June and 50% since the same week of the prior Year . To improve the sales we will use the following promotions strategies:

1. Provide percentage off discounts example 20% off, 40% off, 50% off on most of the popular and effective products. As percentage of attracts a lot of customers towards them and help them to choose the product. Percent of sales are profitable and simple to.
2. We can also use X amount of dollar off It is an alternative of percentage of strategy. Example we provide $5 or $15 or $20 off. It is very difficult to judge whether the percentage discount off was better than this because many of the study showed mixed results.
3. Buy one get one free offer. This is one of the most attractive offer. Which is also known as BOGO .This promotion is applied in two ways Firstly buy one get one free and secondly Buy 1 get the second item Percent off.
4. Multi buys promotion is another good option of promotion, It largely depends on the type of product we are selling, for example buy two Jeans and get one t-shirt free.
5. Multisave promotion is one of the promotion type for sales like buy and save on specific items.
6. Conditional promotion is one of the promotion strategy of sales Like buy and get one more item for free or discount.
7. If you are Running an eCommerce website you can use free shipping. Which is a good promo for you.
8. Try before you buy is also promotion strategy Which is used by the companies like they sell products to the customers and only charge shipment and are given specific trial period if they don't return after trial period the full amount will be charged from them.