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.

Question

Quizplus · Accepted Answer

Share points are essentially a measure of market share, so in order to use them for marketing resource allocation decisions, managers need to estimate the revenues associated with each share point. This will help them determine the potential return on investment for any given marketing initiative. Factors such as total production costs, number of market segments, stage of the product life cycle, and financial resources available are important considerations as well, but they are not directly related to share points. Cannibalization effects on other products in the line are also an important consideration, but this is not something that needs to be estimated. Rather, it should be analyzed based on existing data and market trends.

Using Share Points to Make Marketing Resource Allocation Decisions,marketing Managers