Marketing week 9 – Segmenting, Targeting and Postitioning (Part 2)
Breakeven in units -
Operating expenditures (Fixed Costs)
[Per unit Revenue (SP) – per unit Variable Costs (VC)]*
Categorize into *(also called unit Contribution Margin)
Identify Fixedand Capitalts Identify Revenue per
Costs Investment Va(COGS) Costunit (Selling
(DONCI)include Price) 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
There are 3 sets of data…
- Fixed costs (operating expenses) raise $1050, for the winter case competition.
a) How much revenue must you collect to breakeven?
- Variable costs (per unit)
- Revenue (per unit) b) How many mugs must be sold to reach goal?
c) Is goal realistic?
Bases for segmentation (GooDPUB) Behavioural Segmentation
- Geographic - Occasions: based on occasions when need is developed
Region, City Size, Climate, Culture, Urban/rural - Benefits: based on benefits sought