MKT 310 Lecture Notes - Lecture 10: Gross Margin, Cash Flow, Genius Bar

• School: Ryerson University
• Department: Marketing
• Course: MKT 310
• Professor: John Peco

Document Summary

Systematic approach that guides the marketer in the overall evaluation of the cost of the program vs the expected benefits. Can be used to determine the merits of a single marketing initiative or to compare multiple alternatives to each other. Cba considers the time value of money, and therefore the benefits (derived over time) are compared over the cost (paid over time) Defined as the tangible, net, and measurable dollars that result from an initiative like a marketing program. Increase in gross margin that results from a campaign. Labour savings that might result from automation. Recognition that currency will lose value over time because of inflation. Currency that is invested will earn interest and increase in value over time. Identify all expected benefits of that alternative. Labour savings in sales, distribution, other aspects of marketing. Identify all anticipated costs of the alternative. Compare the npv of each if multiple alternatives are being evaluated.