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TERM
Subsidized (non-incremental)
Sales that would have happened without the promotion.
Definition
Subsidized volume is the portion of promoted sales that are not incremental.
How to Calculate
Subtract incremental volume from promoted volume.
Why it Matters
Shows waste in trade spend.
Key Advantages
Helps tighten promotions.
Example
Of 500 promoted units, 300 were subsidized.
Use it to
Measure the share of promoted sales that would have occurred without support to identify subsidy. Reduce subsidy by adjusting deal type or depth to increase incremental share.















