An Integrated Bargaining Solution Analysis For Vertical Cooperative Sales Promotion Campaigns Based On The Win-Win-Win Papakonstantinidis Model

Abstract

Authors intention was to examine the possibility to investigate win-win-win papakonstantinidis model in order to develop an integrated bargaining solution analysis for vertical cooperative sales promotion campaigns. Based on previous theoretical extensions (Spais and Papakonstantinidis, 2011; Spais, Papakonstantinidis and Papakonstantinidis, 2009), this study presented an integrated bargaining solution analysis for cases of optimal allocation of a promotion budget in a cooperative sales promotion campaign in vertical marketing channels. This integrated bargaining solution analysis included: a) three (3) adjusted utility functions, considering the parameters of sales response budgeting method, the break-even sales analysis and the marketing channel members trade promotion goals; b) the referee solution, the optimal solution for the three players and the constraints; c) the definition of the third win in terms of a continuous sensitization process and perfect information; and d) the presentation of the potential outputs from a bargaining process regarding to the sharing of the cooperative sales promotion cost among A, B and C parties/players for different sales promotion offerings. Encouragingly, the review of the modern literature and the four (4) critical case studies of cooperative marketing programs confirmed the need for a win-win-win approach in cooperative sales promotion planning in vertical marketing channels.