- Marketing is the activity, set of institutions, and processes for creating, communicating,
delivering, and exchanging offerings that have value for customers, clients, partners and society
- Variation in supply is constantly changing along with variation in demand and therefore
supplier’s products and processes are always being changed by changes in demand.
- Product innovation life cycle – introduction market fermenting, growth market making, maturity
- Economies are made up of chains of manufacturers that each add value. It is called an added
value supply chain.
- PEST stands for Political, Economical, Social and Technological.
- Percentage Change = (New Amount – Old Amount) *100%
- SWOT – Strengths, Weaknesses, Opportunities and Threats
CHAPTER 4 - Relative Market Share= Brands Market Share ÷Largest Competitor Market Share
- Unit Market Share(%) = Unit Sales
Total Market Unit Sales
- Revenue Market Share (%) = Sales Revenue
Total Market Revenue
- Three firm concentration ratio = highest 3 revenues (addition)
- Herfindahl Index = (each market share unit ^2) add all of them
- Pure monopoly – one seller who sets the price for a unique product
- Oligopoly – Few sellers who are sensitive to each other’s prices
- Monopolistic Competition – Many sellers who compete on nonprice factors
- Pure Competition – Many sellers who follow the market price for identical commodity products
- Contribution margin is the amount left over from sales revenue that can contribute to fixed
costs, once variable costs are deducted.
- Contribution margin can be expressed as a %, or a dollar amount and also per unit or total
- Contribution Margin = Revenue- COGS or Variable Costs
- Contribution Margin % = Contribution Margin $ * 100
- Quantitative Research
- Advantages - Disadvantages
Power of numbers/science Superficial/structured
Objective Not innovative