A method and system for predicting the profit attributable to a proposed
sales promotion of a product, wherein the product has a wholesale price
and a manufacturing cost per unit sales, including establishing a base
volume for sales of the product in the absence of promotions; determining
a sales lift for the plurality of single promotions; and correlating the
sales lift with promotion information to provide a sales lift model. The
method and system also include proposing a promotion having a cost per
unit sales for a promotion time period and having a planned sale price
for the product; applying the sales lift model to the proposed promotion
to predict sales of the product for the promotion time period; and
calculating manufacturer profit based upon the product's predicted sales,
cost per unit sales for promotion, wholesale price, and manufacturing
cost per unit sales during the promotion time period.