Market-Based Management 6th Edition by Roger Best

Exercise 21

The five interactive marketing performance tools and application exercises outlined here will strengthen your understanding of segmentation strategies and customer relationship marketing. To access the tools, go to www.MBM-BEST.com. For many of the questions, you can determine the answers by entering data included in the questions. You may also enter other data to see the results, and you can save your work. Each application exercise is based on the Chapter 5 figure in parentheses.
Segment Profitability
A. For the price segment, what would be the profit impact of a 10 percent decrease in price if market share could be increased from 2 to 3 percent?
B. For the quality segment, what would be the profit impact of a strategy to increase the marketing budget from 10 to 15 percent of sales in an effort to increase market share from 2 to 3 percent?