When looking at share of manufacturer sales % graph we can see that team 3 and
4 have unhappy customers. Both team's
sale percentages are declining. The
first graph shows their sales dollars are increasing but the volume is going
down. This is mostly likely attributed
to price or changes in promotion. They
are getting more money in and have less of a market %.
Perhaps the one measurement that could be added to the dashboard
is the net marketing contribution. We
know the formula is NMC=market demand x market share x selling price. The
NMC measures how much the marketing strategy accounts for marketing and sales
to cover expenses. As brand managers our goals include increasing marketing and sales to remain
competitive in market shares and penetration. We know these goals include
expenses with each given unit price and these expenses must be less that gross
profit to ensure the NMC remains in the black. There is a down side to adding NMC to the
dashboard. It will afford all teams a
method to back into each other's selling price.
We can figure out the market demand and use the other metric for market
share. By adding the NMC, the selling
price could become a very simple equation.
While I wouldn't mind researching the competition more closely, I don't
think I want them researching my team.
On second thought... let's leave the current metrics as they are.


No comments:
Post a Comment