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Profitability Analysis by Market Segments

Leland L. Beik and Stephen L. Buzby
Journal of Marketing
Vol. 37, No. 3 (Jul., 1973), pp. 48-53
DOI: 10.2307/1249946
Stable URL: http://www.jstor.org/stable/1249946
Page Count: 6
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Profitability Analysis by Market Segments
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Abstract

The contribution approach to cost accounting serves to relate products, channels, and/or other marketing components to the profitability of market segments. Using the profit criterion, the marketing manager can plan and control his decisions for the component being analyzed and make collateral adjustments in other elements of the marketing mix.

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