Transcript
What Is Marketing?
o A Philosophyo An Attitude o A Perspectiveo A Management
Orientation
o A Set of Activities, including:o Productso Pricing o Promotiono Distribution
AMA Definition of Marketing
Marketing is an organizational function and a set of processes for creating, communicating, and delivering value to customers and for managing customer relationships in ways that benefit the organization and its stakeholders.
Exchange
o Exchange is the trade of things of value between buyer and seller so that each is better off after the trade.
MarketoA market consists of people with
both the desire and ability to buy a specific product.
o Place of actual & partial buyers
Target Marketo The target market consists of one or more
specific groups of potential customers toward which an organization directs its marketing program.
oTargetingo Targeting is the process of focusing
marketing efforts on specific segments identified through the
o segmentation process.
Positioning
to target market The process of communicating segments how they should think about, view, or perceive an offering in relation to competitors.
PROFITo is the amount of money earned over the expenses incurred. When
provided with price, quantity and costo informationo (i.e. you can calculate the selling price if given profit, quantity,
fixed costs & unit variable costs).o Total Revenue = Price x Quantityo Total Costs = Fixed Costs + (Unit Variable Costs x Quantity)o Profit = Total Revenue - Total Costso Therefore,o Profit = (Price x Quantity) - [Fixed Costs + ( Unit Variable Costs
x Quantity)]
Marginso When selling a product, the contribution margin
(sometimes called gross margin) is the amount left overo after you have covered the costs of the good sold.
o Contribution Margin in Dollars = Price - Unit Variable Cost margin is often expressed as a percent
o MarkupPercent = Price - Unit Variable Costs
price
is the point at which the revenue generated from sales equal the total costs.Break Even Point in
UnitsBreak Even Point in Dollars
Break Even Point in Units
Fixed Costs
(Price - Unit Variable Costs)
Break-Even Point in Dollars
Fixed Costs
1- ( Unit Variable Costs/ Price)
PricingPrice based on Markup on Cost Desired Selling Price =
Unit Variable Cost (1 + Markup Percent)
Markup as a percent of cost Dollar Markup
Cost
Price Based on Return from Price
Desired Selling Price= Unit Variable Cost
1 - Desired Return % on Price
Markup as a percent of price
Dollar Markups
Price
top related