The output of a market
model is a set of equations that spell out the relationship between sales and
the variables of the marketing mix. With these equations one can predict what will
happen if changes are made to the mix variables.
Exhibit 36.18 provides
an example of a “What-if” analysis tool to simulate the impact of price
discounting. By changing the discounts in “Discount Price” column the user is able
to see how those discounts will affect the sales volume and sales value, for
the items in the category.
