When using share points to make marketing resource allocation decisions, marketing managers must estimate: (1) the market share for the product, (2) __________, (3) the contribution to overhead and profit (or gross margin) of each share point, and (4) possible cannibalization effects on other products in the line.
A)total production costs
B)number of market segments
C)stage of the product in its product life cycle
D)the total financial resources available for a sustained marketing effort
E)the revenues associated with each point of market share

Question

Quizplus · Accepted Answer

The missing item in the list is the revenues associated with each point of market share. Marketing managers need to estimate the revenue generated by each share point to determine the optimal allocation of marketing resources. The other options listed (total production costs, number of market segments, stage of the product in its product life cycle, and total financial resources available for a sustained marketing effort) are also important factors in marketing resource allocation, but they are not directly related to estimating share point revenue.

When Using Share Points to Make Marketing Resource Allocation Decisions