Patent ID: 7287000

Claim:
A computer-implemented method of promotion price organization, comprising: a product segmentation module identifying products to be analyzed under a plurality of promotion schemes; a customer segmentation module identifying customers of the products to be analyzed under the promotion schemes; an incentive translation module providing incentive typing of the products to be analyzed under the promotion schemes by collecting incentive offers for promotion programs over a time period and transforming the promotion programs to fit market modeling requirements; a data aggregation module evaluating historical promotional transactions by aggregating for the products to be analyzed under the promotion schemes; a model selection module selecting a model for analyzing the aggregated data by performing the step of steps (a) through (e) which the model selection module determines to be appropriate from the availability of product data, and, as required: the completeness of product data, the cross-impactedness of product segments, and the number of products: (a) selecting a standard model if product data is unavailable, (b) selecting sales volume as a dependent variable and evaluating using a multiplicative model if product data is available and complete, (c) selecting sales volume as a dependent variable and evaluating using a multiplicative model if product data is available but incomplete and product segments are cross-impacted, (d) selecting market share as a dependent variable and evaluating using a multiplicative model if product data is available but incomplete and product segments are not cross-impacted but the number of products to evaluate exceeds a predetermined maximum value, (e) selecting market share as a dependent variable and evaluating using an attraction model if product data is available but incomplete and product segments are not cross-impacted and the number of products to evaluate does not exceed a predetermined maximum value; a calibration module calibrating the selected model by determining values for dependent variables used in analyzing the aggregated product data within the selected model; an evaluation module estimating an effect of promotional schemes on profits by evaluating the aggregated product data in accordance with the selected model; a constraints generation module for a user defining constraints on variables in the selected model; a cost structure module determining costs associated with the promotion schemes; and an optimization module determining optimal discount for the products to be analyzed under the promotion schemes and ranking the products by profitability based on the model and dependent variable selected by the selection model.