MKT 100 Lecture Notes - Lecture 8: Marketing Mix, Fixed Cost, Taco Bell

• School: Ryerson University
• Department: Marketing
• Course: MKT 100
• Professor: Martin Pyle

Document Summary

The basic process identify and define the segments. 1: evaluate each segment, while considering offerings, choosing 1/more target segment, position brand to appeal to that segment by adjusting marketing mix. Step 1- estimate size of target market in annual units or dollars sold. We rarely have exact numbers for the size of the market, so we typically use estimates based on available number form other sources. Step 2- determine how much revenue or # of units are required to break-even or achieve desired romi (return of marketing investment). Calculating the break-even point: x units = fixed costs + profit / contribution margin. = ,000 + (,000 x 0. 3) = ,200 or = ,000 x 1. 3 = ,200. Step 3- assess the likelihood of attaining the required sales and share needed to achieve the target break-even (including target profit) or desired romi. Share of total market (target volume/total market) = 2. 65% Share of accessible market (target volume/accessible market) = 26. 5%