Allocating a limited budget across brands is one of the challenges you will face in PharmaSim. Go to the Marketing Management Process section of the manual and read the part about How Best to Allocate a Limited Budget Across Brands to help you complete this assignment.

For this assignment, suppose that a firm has three brands with a marketing budget, sales, market growth in the product segment, and product contribution as shown in the table below.

	Brand A	Brand B	Brand C
Budget	$15M	$7M	$3M
Sales	$400M	$80M	$20M
Market Growth	1%	5%	12%
Contribu on	$37M	$25M	$2M

1. The return on marketing expenditures will give you an idea of how well the marketing budget is being spent. Use the data from the table above to complete the following table (Contribution Budget = Return on Expenditures):

2. For the coming period, the total marketing budget has been increased to $27 million. Calculate the allocations for brands A, B, and C using the criteria listed in the following table:

	Brand A	Brand B	Brand C
Contribution
Budget
Return on Expend.

Criterion	Brand A Budget	Brand B Budget	Brand C Budget
Previous Budget
Sales
Market Growth
Return on Expend.

3. Are past results the only factors that you might use in allocating a budget among brands? What other factors might you consider?