Explain the flaw in how you allocated the ad budget

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Reference no: EM131910053

Problem

You manage an advertising budget of $25 million per year and you are trying to decide where to allocate promotional dollars for 2014. You review year-to-date sales figures for your company and see that your sales have grown in the Southeast market by 5%, the Northeast has grown by 3%, the Southwest has grown by 11%, and the Northwest has grown by 6%. As a result, you decide to divide your ad budget proportionally based on these sales figures. Using the concept of "market share", explain the flaw in how you allocated the ad budget. Be sure to accurately define or explain market share in your answer.

Reference no: EM131910053

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