Final answer:
To compare tactical shares to $ share, you use a Tactical Share Index (TSI). TSI calculates the efficiency of marketing tactics relative to revenue generation, providing a percentage by dividing the tactical share by the dollar share. It aids in resource allocation and strategic adjustments for businesses.
Option 'b' is the correct.Option 'C' is the correct.
Step-by-step explanation:
To compare tactical shares, such as features, display, items, and shelf share, with $ share, you would use a calculation known as a Tactical Share Index (TSI). This index allows you to evaluate the efficiency of various marketing tactics relative to generating revenue. It is comparable to other market concentration metrics like the four-firm concentration ratio and the Herfindahl-Hirschman Index (HHI), which assess competition by calculating the market shares of top firms or squaring and summing the market shares of all firms, respectively. However, TSI specifically relates tactical allocations to their respective revenue outcomes, providing insight into how well each tactic converts into sales.
The Tactical Share Index is calculated by dividing the tactical share by the dollar share and then multiplying by 100 to get a percentage. This tells us how a particular tactic's share of market tactics compares to the brand's overall share of market revenue. For example, if a brand has a 20% feature share but only a 10% revenue share, the TSI for features would be (20/10) * 100, yielding a TSI of 200%, indicating that the brand's feature share is effectively double its proportion of market revenue.
A TSI greater than 100% suggests that a tactic is over-performing relative to revenue share, whereas a TSI less than 100% would indicate underperformance. By benchmarking tactical shares against revenue share, businesses can allocate resources more effectively and adjust strategies to optimize return on investment.