04 Nov Marketing Variance Analysis – November’s Free MBTN Tutorial

Marketing Variance Analysis is a crucial tool that allows organizations to evaluate and understand the differences between expected and actual outcomes. It offers insights that can be applied at various levels of an organization, across different contexts such as budget vs. actual, time estimates vs. actual time, and expected vs. actual metric performance. In this month’s tutorial on Marketing Variance Analysis, we will delve into a high-level examination of the potential causes of variation in net marketing contribution.

In this tutorial we’ll first consider the definition of net marketing contribution and its five components (demand, market share, price, cost, and marketing expenses) where we’ll look for individual variations that impact contribution. Once we have a clear understanding of which components are the primary drivers of variation in net marketing contribution, we can proceed to dig deeper into the underlying causes. This is where the real value of Marketing Variance Analysis shines. We seek to uncover the reasons behind the discrepancies and develop strategies to address them.

The insights presented in this tutorial on Marketing Variance Analysis are authored by Thomas Kinnear, Professor Emeritus at the University of Michigan. With his wealth of knowledge and experience, Professor Kinnear provides invaluable guidance for bridging the gap between the marketing and finance functions within an organization.

The free link has expired, but check out this month’s tutorial under the Business Education Resources Blog.

If you find these tutorials valuable and you are faculty at a University or Community College, you might also be interested in our complete catalog of MBTN modules, available for use in academic settings. You can choose any combination of 3 or more modules to suit your needs.

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