MKT 100 Lecture Notes - Psychographic, Brand Loyalty, Social Class

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Published on 13 Oct 2012
Department
Course
Professor
Marketing week 9 Segmenting, Targeting and Postitioning (Part 2)
Breakeven
Bases for segmentation (GooDPUB)
- Geographic
Region, City Size, Climate, Culture, Urban/rural
- Demographic
Age, Sex, Marital status, Income, Education, Occupation,
Family life cycle, Culture, Religion, Race, Social class
- Psychographic
Activities, Interests, Opinions, Life-style
- Usage
Rate, Awareness status, Brand loyalty, Situation, Time,
Objective, Location, Person
- Benefit Sought
Attributes, Hedonic, Utilitarian
Metrics Breakeven
Calculate the unit contribution margin:
Sales Revenue/unit Variable Cost/unit
Calculate the breakeven in units:
Operating expenses (FC)
Contribution margin (SP-VC)
The break-even point for any business activity is defined as the level of sales at which neither a profit nor a loss is made
on that activity. That is where Total Revenues = Total Costs
Breakeven volume = Fixed cost ($) / Cont margin per unit ($)
Breakeven revenue = Fixe cost ($) / Cont margin per unit ($) * (Selling price/unit)
Identify Fixed
Costs
Categorize into
Operating Costs
and Capital
Investment
(DON’T include
CI)
Identify
Variable Costs
(COGS)
Identify
Revenue per
unit (Selling
Price)
There are 3 sets of data…
-Fixed costs (operating expenses)
-Variable costs (per unit)
-Revenue (per unit)
Behavioural Segmentation
- Occasions: based on occasions when need is developed
- Benefits: based on benefits sought
- User status: non users, ex users, and/or potential users
- Usage rate: heavy, medium, or light
- Buyer-readiness: different stages of readiness
- Loyalty Status: hard-core, split, shifting, switchers
- Attitude:
enthusiastic, positive, indifferent, negative, hostile
Formulas:
Breakeven in units -
Operating expenditures (Fixed Costs)
[Per unit Revenue (SP) per unit Variable Costs (VC)]*
*(also called unit Contribution Margin)
Breakeven in dollars -
Breakeven in units x per unit Revenue (SP)
Business Objective (example)
You are in charge of a fundraiser for your RMA, and have decided to
sell mugs to raise money from sept nov (13 weeks) and want to
raise $1050, for the winter case competition.
a) How much revenue must you collect to breakeven?
b) How many mugs must be sold to reach goal?
c) Is goal realistic?
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Document Summary

Marketing week 9 segmenting, targeting and postitioning (part 2) [per unit revenue (sp) per unit variable costs (vc)]* Breakeven in units x per unit revenue (sp) Occasions: based on occasions when need is developed. User status: non users, ex users, and/or potential users. Family life cycle, culture, religion, race, social class. The break-even point for any business activity is defined as the level of sales at which neither a profit nor a loss is made on that activity. That is where total revenues = total costs. Breakeven volume = fixed cost ($) / cont margin per unit ($) Breakeven revenue = fixe cost ($) / cont margin per unit ($) * (selling price/unit) Segmentation - identify and profile distinct groups of buyers who differ in their needs and preferences. Targeting - select one or more market segments to enter: positioning - establish and communicate the distinctive benefits of the market offering. Point of differentiation or unique selling proposition (usp)

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