COMPLEX PROMOTIONSIN RETAIL

Complex promotions used by retailers introduce to the consumers several rules that must be satisfied in order to get some benefits and usually refer to multiple products (e.g. “buy two, get one free”). Rules of complex promotions can be quite sophisticated and complicated themselves. Since diversity of complex promotions limited only by marketers’ imagination we can observe broad variety of promotions’ rules and representa¬tions of those rules in retailers’ commercials. Such diversification makes no good for fellow scientist who’s trying to sort all type of promotions into the neatly organized classification. Although we can simple add every single set of rules offered by retailers as a separate form of sales promotion it seems not to be the best way of dealing with such a problem. The better way is to realize that mechanisms underlying that variety of promotions are basically the same, namely changes in demand or quantity demanded. Those two concepts alone provide powerful insight into classification of complex promotions and allow us to comprehend the variety of promotions offered by marketers nowadays.