MKT 300 Lecture Notes - Lecture 2: Fixed Cost, Marketing Mix, Nopat

• School: Ryerson University
• Department: Marketing
• Course: MKT 300
• Professor: Martin Pyle

Document Summary

Step 1: estimate size of target market in annual units or dollars sold. Cbc), industry comparisons/sales data: consider the unit of purchase (e. g. , individual, household, company, rough numbers, so may want to create a range of estimates between conservative and best-case scenarios. Step 2: determine how much revenue or # of units are required to either break-even, or achieve desired romi (return on marketing investment: breakeven = fixed costs/contribution margin. 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. The act of strategically designing the company(cid:495)s offering and image to occupy a distinctive place in the. While it starts with a product or service, it is not what you do to a product, but what you do to the mind of the target market mind of the prospect.