December 2017
Intermediate to advanced
390 pages
7h 51m
English
Content preview from Measuring Marketing
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Chapter 3 Value-to-Volume Ratio
Measurement Need
Determine how efficient the marketing efforts are compared to the competition.
Solutioni
The value-to-volume ratio (VVR) measures the firm’s estimated share of total market gross profits (either for the company overall or a specific product) compared to the firm’s share of the total dollar volume sold in the market or the product category:
Where
VVR = value-to-volume ratio
%Pgm = estimated percentage share of total market gross profits
%Vm = percentage share of market total dollar volume
Airbus and Boeing are the two dominant commercial aircraft manufacturers. In 2017 their respective revenues and gross profits were as follows:
| Airbusii | Boeingiii |
| Revenues |
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