MKT 300 Lecture Notes - Lecture 2: Breakcore, Psychographic, Market Segmentation

• School: Ryerson University
• Department: Marketing
• Course: MKT 300
• Professor: Helene Moore

Document Summary

Fixed costs remain fixed, regardless of how many units are sold. We have to mark-up to cover costs and gain profits. Margin % = margin / price * 100. Markup % = mark up / cost * 100. Mgn$ = (price variable costs) $ leftover to cover fixed costs, and make profit. Mgn = (1-0. 6) = 0. 4 for every 1$ revenue, i have 40c to cover fixed costs and profit. Sometimes these steps vary, and channels are removed. Direction is important eg: manufacturer price is the wholesalers cost. One product vs multiple products with different margins. Segmentation: recognizing different groups of people with a shared need. Targeting: selecting one of more segments to enter. Market segment: subgroup within market with shared interests. Needs-based segmentation: most products can fulfill multiple needs. Cofee can fulfill multiple needs. (warmth, wake-up, taste) Benefits get people from point a to b, cheap cost, sporty environmental vehicle.