Developing a model to identify the fade-awayimpact of promotional activities onmarket share of firms

Abstract

When a particular promotional tool is used, the impact of that promotional tool is not restricted to the current period, but the effect permeates across future periods as well. The study identifies this impact as ‘fade-awayimpact’ of promotional activities on the financial performance. The traditional practices restrict the impact of promotional activities only to short term results and completely ignores the medium and long term impact of promotional activities on the market shares of the firm. The purpose of this study is to develop a model to identify whether there is a fade-away-effect of promotional activities over the market share values of the firm and identify how the impact behaves over the time. Promotional activities bring tangible and intangible benefits. Most of the marketing literature is focused on understanding the immediate/short term impact of promotional