Is sales promotion expensive?
A 20 per cent money-off coupon for entrance to a visitor attraction can cost very little. If the visitor has to produce the leaflet/coupon to gain a reduction, the response can be directly measured. The effectiveness of business gifts (calendars, diaries) is much harder to quantify. Sales promotions such as sales or money-off promotions should be capable of comparison with the same period last year or month. However, you need to take a broader view to gauge the effect on profitability – your sale may just have stocked up the buyer’s larder in advance for goods they would have bought anyway. On the other hand, customers brought to your premises by a promotion for one product may have bought something else as well.
