Marketing

Marketing

Ayesha Khalil.

Marketing

Creating Customer Relationships & Value

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.

Market Segmentation, Targeting & Positioning

Positioning

to target market The process of communicating segments how they should think about, view, or perceive an offering in relation to competitors.

Marketing Math: Fundamentals of Profit,Break-even & Pricing

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

BREAK - EVEN

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)

Pricing

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

.Any Question???

. Thank You