MKTG 3P24 Study Guide - Final Guide: Perfect Competition, Target Market, Air Canada
21 Jan 2017
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Breakeven (units): profit=revenue-expenses | expenses=variable costs fixed costs. = ($ company debt for every dollar) (high=high risk) Profitability of a company: return on assets. =% of each $ of assets held: return on sales. Numbered in terms of how pricing would affect ea(cid:272)h of the c(cid:859)s: customers/consumers, competition, corporation. And make a plan to fix it: to whom are we going to sell this to and how are we going to do it. Consumer (external: know who is buying your producy. Competition (external: be sure you do not define your market too narrowly (marketing myopia) Corporation (internal: know your strengths and weaknesses. You set the price rather than what customers want to pay: new entries= you want to create a barrier to entry to others. Example making an expensive ad or lower prices like crazy (air canada example: substitutes= (cid:455)ou (cid:449)a(cid:374)t (cid:455)our pri(cid:272)es to (cid:271)e (cid:271)etter or produ(cid:272)t (cid:271)etter or so(cid:373)ethi(cid:374)g else .
