GMS 200 Lecture Notes - Lecture 7: Profit Margin, Unmanned Aerial Vehicle, Income Statement
5 May 2018
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The company’s major objective for marketing management was to focus on three main
elements: P/Q Ratings of both the AC Camera and the UAV Drone, the advertising budget, and
the operating profit margin. Throughout the years, our market image rating had been
progressively increasing whilst maintaining the same business goal to have the products more
attainable and averagely priced. However, the P/Q Rating of the AC Camera within the first few
years remained quite lower than the UAV Drones. As shown in (Figure --), the highest P/Q
Rating for the AC Camera remained a 4.7 while the highest UAV Drone rating was a 5.5 by the
end of Year 13.
For each marketing costs per unit sold, one of the company’s marketing strategies was to
keep a focus on North America and Europe-Africa. The reason being was because these specific
geographical regions were where the majority of our market shares were concentrated. The
approach involved the use of our revenues towards the advertisement which helped keep an
increase in our profits. This marketing cost for each of the AC Camera and the UAC Drone
products demonstrated a relationship on our operating profit. The company’s ability to
effectively recognize the impact of marketing costs per unit had allowed the marketing costs to
be contributed with a variation of change each year. Starting Year 11 to Year 12, the marketing
costs per units for the UAV Drone increased almost four times the original contribution rate lead
by the consistent increase of the operating profit after Year 9.
Displayed by an income statement contrast, the company experienced a positive impact
when the marketing costs in most geographical areas were doubled from year 11 to 12. Even
though, this was least successful in Latin America, it was a massive change for other areas from
the previous gradual thousand-dollar increase. From this change, the priority of marketing
became essential and a clear strategy for success.
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Document Summary
The company"s major objective for marketing management was to focus on three main elements: p/q ratings of both the ac camera and the uav drone, the advertising budget, and the operating profit margin. Throughout the years, our market image rating had been progressively increasing whilst maintaining the same business goal to have the products more attainable and averagely priced. However, the p/q rating of the ac camera within the first few years remained quite lower than the uav drones. As shown in (figure --), the highest p/q. Rating for the ac camera remained a 4. 7 while the highest uav drone rating was a 5. 5 by the end of year 13. For each marketing costs per unit sold, one of the company"s marketing strategies was to keep a focus on north america and europe-africa. The reason being was because these specific geographical regions were where the majority of our market shares were concentrated.
