the present invention provides a promotion pricing system and a related model for producing a value evaluation and recommendation for promotion on a targeted product so as to analyze , evaluate , improve , and design promotions to meet a user &# 39 ; s need . the promotion pricing system generates promotion price evaluations and recommendations for each product promotion related to a target product of a user along with associated competing products from the user and competitors . the user can be an individual , an organization , a corporation , an association or any entity providing , including activities related to making , selling , resale , offering for sale , distributing and other commercial conducts , products or service or both in the stream of commerce in the preferred embodiment , the promotion pricing system of the presenting invention is comprised of modularization of the necessary analytical steps along with specifications for these modules . these modules cooperate to implement statistical market response estimation that provide statistically stable , fact - based information on customer response to a promotions . the modules further allow data capture to leverages enterprise and supply chain data sources . the modules include a product segmentation module , an incentive translation module , a customer segmentation module , a data aggregation module , a model selection module , a calibration module , an evaluation module , a constraints generation module , a cost structure module , an optimization module , a market channel performance module , and an alert module .