A framework for analysis of sources of profit contribution variance between actual and plan

Article Abstract:

A model is formulated to study the profit contribution variances between the actual and plan. It shows the decomposition of total variance into partial variances that are correlated with potential sources, including inaccurate market responses, differences in the marketing of the actual and plan as well as reaction variance. In general, the proposed method provides distinct information on the effects of assuming inaccurate values for the planning, execution and reaction variances.

Marketing Management, Planning

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Marketing data, models and decisions

Article Abstract:

The issues of soft versus hard data and segment level versus individual marketing models are discussed.

Market Research, Marketing models

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