Ford's Wood Elixir Company makes everything you need to strip and restore antique wooden furniture. It has developed a new all-natural cleaner that is effective and easy to use. The product will be called Nature's Way, and it will be introduced to the marketplace in December. If Ford's Wood Elixir follows the common practice for firms with a new product, which method of allocating funds will it most likely use?

Question

Vincent Curtis

Business

27 June, 15:09

Ford's Wood Elixir Company makes everything you need to strip and restore antique wooden furniture. It has developed a new all-natural cleaner that is effective and easy to use. The product will be called Nature's Way, and it will be introduced to the marketplace in December. If Ford's Wood Elixir follows the common practice for firms with a new product, which method of allocating funds will it most likely use?

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Answers (1)

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Mila Cowan · Answer 1

Share of market / share of voice method

Explanation:

The share of voice of your product is the total volume of advertising that your product has within the market. The share of market is another way of saying the market share of your product; your product sales represent what percentage of the total market sales.

Share of market / share of voice method for allocating advertising funds states that in the introductory stage of a product, the share of voice should be much higher than the expected share of market of the product. In other words, if you expect that your new product, Nature's Way, gets a 10% market share, the amount of total advertising (share of voice) should at least be 15-20%.