Sorry, Paul. I made a mistake in the post.

It’s Aggressivity index = Expenditure share / Market share. So the more you spend relative to your market share the higher your aggressivity is.

I’ve corrected it above. Thanks for pointing out the error.

– Greg

]]>Thanks. In your article the formula was:

Aggressivity index = Market share / expenditure share

In the example on your reply you flipped the denominator. So now am slightly confused!

]]>Sure. If you have 10% market share but are spending 5% of the total ad money in the category, you’re aggressivity index would be

5%/10% * 100 = 50 and you can interpret that as spending 50% of your market share and you could expect that your market share would decrease.

Like all analysis, you have to take the numbers with a grain of salt, because you are using two inputs (market share and media monitoring) that are imperfect. However, as a rough approximation, I’ve found it to be effective.

– Greg

]]>Can you give an example of how to use the agressivity index with real numbers and how to interpret.

Thanks

Paul

]]>Thanks for sharing your thoughts, Edward.

– Greg

]]>The present models in use lack a sustainable business model.

Their primary role is to keep a balance between the supply of deposits and other funds and the demand for them by borrowers. To do this they need to perform in two ways:

1. Maintain the asset value of the property market as a whole in a fairly steady state. They cannot do that because they do not know how and the regulators are just as ignorant. It follows as a direct result of the interest rate risk management equations that I have developed.

2. They must be able to manage their balance between supply of funds and the demand for funds by use of the interest rate mechanism. This feeds into the entry cost which is the cost of the initial monthly payments and that links into loan size and property price stability or instability depending upon which business model is used. Theirs (unstable) or mine (stable).

The model that they use cannot achieve either of these things. The industry does not have a sustainable model, or at least not a consistently sustainable model.

Give me the opportunity and I will provide one as explained on my blog

http://macro-economic-design.blogspot.com

I can even stretch my model to rescue banks and to prop up the property market by over-lending safely until we have the economy going again. That might plug the hole in the banking sectorâ€™s bucket. My blog explains that too.

]]>Jean Louis,

Ves, that type of regression analysis can be very useful and most major brands do employ econometric media mix modeling, which is based on multivariate analysis.

– Greg

]]>Good review as usual. In addition to the aggressivity I use the threshold factor. It the amount of competitive investment necessary to make market share move. In the pharma industry it is easily computable with regression analysis based on data from IMS or so. Class C5C for example is wonderful to analyze.

best

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