What is 'incremental ROI' in SAP CRM-MKT-MPL-TPO - SAP Trade Promotion Optimization?

incremental ROI - Overview

• Component: CRM-MKT-MPL-TPO

• Component Name: SAP Trade Promotion Optimization

• Description: Additional volume of sales that a short-term trade promotion creates minus the cost of the promotional activity.

incremental ROI - Details

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  Key Concepts: 
  Incremental ROI is a metric used to measure the return on investment (ROI) of a trade promotion. It is calculated by subtracting the expected ROI of a promotion without the trade promotion from the expected ROI of a promotion with the trade promotion. This metric helps to determine the effectiveness of a trade promotion and whether it is worth investing in.
  
  How to use it: 
  In order to calculate incremental ROI, you must first calculate the expected ROI of a promotion without the trade promotion. This can be done by taking the total sales generated from the promotion and subtracting any associated costs. Then, calculate the expected ROI of a promotion with the trade promotion by taking the total sales generated from the promotion and subtracting any associated costs. Finally, subtract the expected ROI of a promotion without the trade promotion from the expected ROI of a promotion with the trade promotion to get your incremental ROI.
  
  Tips & Tricks: 
  When calculating incremental ROI, it is important to consider all associated costs such as advertising, marketing, and promotional materials. Additionally, it is important to consider any potential long-term effects that may result from investing in a trade promotion.
  
  Related Information: 
  Incremental ROI is an important metric for evaluating trade promotions in SAP Trade Promotion Optimization (CRM-MKT-MPL-TPO). It can be used to determine whether or not investing