The easiest effect to sort out is the impact of a change in market size. Referring to the table, notice that the market as a whole grew from 101,000 lbs in Year 1 to 104,000 lbs in Year 2. If everything remained the same from one year to the next, we would expect the brand's slice of this bigger pie to remain the same. Factors which influence market share The first step in quantifying the share impacts of marketing programs is to set up an econometric model using market share as the dependent variable and all other measures which influence market share as the independent variables. The model should also take delayed consumer response into account.
Manufacturer couponing is a prime example of a marketing program which has a delayed impact.
Adding such lagged response to the brand model is necessary but it also adds to its complexity. An approach combining statistical analysis and management judgment is used to arrive at the optimal model for the brand. A measure which management considers unimportant but has high statistical significance should be part of the model, as should a measure which management considers critical but yields a lower significance level. In this sample case, we see how each of the marketing measures contributes to our favorable result.