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By Lee G. Cooper

Publication through Cooper, Lee G., Nakanishi, Masako

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Extra info for Market-Share Analysis: Evaluating Competitive Marketing Effectiveness

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Reuyl (1984), "On the Predictive Power of Market Share Attraction Models," JOHmal of Marketing Research, 21 (May) 211-15. lOThe planning process would still require a substantial effort as is discussed in Chapter 7. 32 CHAPTER 2. UNDERSTANDING MARKET SHARES a marketing-mix variable. 14) where Si is the market share, and Xki is the value of the k th marketingmix variable, for brand i. The symbol 6 indicates a change in respective variables. There is nothing conceptually difficult in market-share elasticity.

THE PROCESS OF MARKET-SHARE ANALYSIS 15 1. Forecasts of industry sales volume were off. 2. Forecasts of market shares were off. 3. Marketing activities were not carried out as planned. If the actual performance is at variance with the planned, It is essential for the analyst to pin-point the cause of vari an ce by careful analysis. The so-called variance analysii' may be a useful technique for this purpose. We have summarized here the process of market-share analysis as we view it. The reader will find that the organization of Chapters 2 through 7 of this book follows closely the stages of this process.

18) where Q is the sales volume for the entire industry. 7. 19) combines the essential elements of interbrand competition. In order to expand a firm's brand sales, one will have to increase either industry sales or the market share for the brand, or both. But one would expect that in many cases the industry sales will be rather inelastic to a single firm's marketing activities. If this were indeed the case, brand sales could 11 Lambin, Naert & Bultez [1975], "Optimal Marketing Behavior in Oligopoly," European Economic Review, 6, 105-28.

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