What is pre-promotion dip in SAP SCM-IBP-DM - Demand?

SAP Term: pre-promotion dip

• Component: SCM-IBP-DM

• Component Name: Demand

• Description: A drop in sales before a promotion that lasts a certain period of time.

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• Key Concepts: 
  Pre-promotion dip is a term used in SAP's Supply Chain Management - Integrated Business Planning - Demand Management (SCM-IBP-DM) component. It refers to the decrease in demand that occurs when a promotion is announced before it is actually implemented. This decrease in demand can be caused by customers waiting for the promotion to start before making their purchase, or by customers switching to a different product or supplier. 
  
  How to use it: 
  Pre-promotion dip can be used to help companies plan their promotions more effectively. By understanding the potential impact of pre-promotion dip, companies can adjust their promotional strategies accordingly. For example, they may decide to delay the announcement of a promotion until closer to the start date, or they may decide to offer additional incentives to encourage customers to purchase before the promotion begins. 
  
  Tips & Tricks: 
  When planning promotions, it is important to consider the potential impact of pre-promotion dip. Companies should also consider other factors such as customer preferences and competitor activity when planning promotions. Additionally, companies should monitor customer behavior during and after promotions to better understand how pre-promotion dip affects their sales. 
  
  Related Information: 
  Pre-promotion dip is related to other concepts such as price elasticity and promotional effectiveness. Price elasticity refers to how sensitive customers are to changes in price, while promotional effectiveness measures how successful a promotion is at driving sales. Understanding these concepts can help companies better plan their promotions and maximize their sales.