Marketing Performance Tools and Application Exercises
15.1Variance Analysis: Market Demand and Market Share
Change the actual market demand to 1,250,000 and actual market share to 23 percent, separately, to
first evaluate the impact of each change on sales and profits. Then change both actual values to
evaluate the combined effect of both variances on sales and profits. Finally, return both values to the
plan values.
Teaching Note: As shown above, a higher level of market demand would create a $15.625 million
15.2Variance Analysis: Revenue and Cost per Customer
Market-Based Management Copyright © 2012
Sixth Edition –39– Pearson Education, Inc.
Instructor’s Manual– Chapter 4 Publishing as Prentice Hall
Change the actual price to $460 and the variable cost per unit to $210, separately, to evaluate the
impact of each change on sales and profits. Then change both actual values to evaluate the combined
effect of both variances on sales and profits. Finally, return both values to the plan values.
Teaching Note: As shown above, a price $10 higherproduces a $2.5 million increase in the net marketing
15.3Variance Analysis: Marketing and Sales Expenses
Change the actual marketing and sales expenses as a percentage of sales to 14 percent to evaluate
the impact on profits.
Teaching Note:As shown above, if marketing and sales expenses increased to 14 percent of sales,the
Market-Based Management Copyright © 2012
Sixth Edition –40– Pearson Education, Inc.
Instructor’s Manual– Chapter 4 Publishing as Prentice Hall