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Midterm

# MKT 300 Midterm: MKT 300- Formula Sheet

Department
Marketing
Course Code
MKT 300
Professor
Armand Gervais
Study Guide
Midterm

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Total Margin (\$)= Total Revenue - Total Variable Cost (Cost of Goods Sold)
Net Profit = Total Margin (\$) - Fixed Costs
Net Income = Total Revenue - Total Expense
Profit Margin = Net income/ Total Income
Percentage (%) Change = Ne Value - Old Value
Old Value
Contribution Margin per Unit (\$) = Price per Unit - Variable Cost per Unit
Contribution Margin (%) = Cotriutio Margi \$
Reeue \$ ×     
    
Markup (%) = Markup \$
Cost \$ × OR Sellig Prie -Cost
Cost 
Margin (%) = Margi \$
Sellig Prie \$ × OR Sellig Prie -Cost
Sellig Prie ×
Selling Price = Cost + Contribution Margin (\$)
OR = Cost x (1+ Markup %)
OR = Cost
-Margi%
Supplier Selling Price = Customer's Selling Price (\$) - Customer's Margin (\$)
OR = Customer's Selling Price (\$) - [ 1- Customer Margin (%)]
Break-Even Revenue (\$) = Break-even Volume (#) x Price per Unit (\$)
OR = Fixed Cost (\$)/Contribution Margin (%)
Break-Even Volume (#)= Fixed Cost (\$)/ Contribution per Unit (\$)
Target Revenue (\$)= (Fixed Costs (\$)+Target Profits (\$)) / Contribution Margin %
Target Volume (#) = (Fixed Costs (\$)+Target Profits (\$)) / Contribution Margin
per unit (\$)
Gross Profit = Total Revenue Cost of Goods Sold (Variable Costs)
Gross Profit Margin = Gross Profit / Total Revenue
ROIC = Net Operating Profits after Taxes (NOPAT) / Total Invested Capital OR
ROIC = (Net Income - Dividends) /Total Capital
NOPAT = Reported Net Income + Goodwill + Interest Expenses Investment
Income
ROIC- return on investment capital
ROMI (%)= Ireetal Reeue \$x CM%-Mktg Spedig \$
Marketig Spedig \$ ×
Romi= return on marketing investment
Incremental Revenue = (1+ROMI) x Incremental mktg investment/ CM (%)
Market Share (%) = Brand's Sales (in \$ or #)/ Total Market Sales (in \$ or #) X 100
Relative Market Share is the same thing but /Largest competitor's Sales (\$
or #)
Brand Equity Index=Effective Market Share*Relative
Price*Durability.
Example of Effective Market Share=
(10%*60%)+(80%*75%)*+(10%*40%) =.7
Market Penetration (%)=Customers who purchased a
product in the Category (#) /Total Population (#)
Brand Penetration (%)=Customers who purchased the
brand (#)/ Total Population (#)
Penetration Share (%) = Brand Penetration (%)/Market
Penetration (%)
OR
Penetration Share (%) = Customers who have Purchased
the Brand(#)/ Customers who have Purchased a Product in
the Category
OR
Penetration Share (%) = Market Share (%) / [Heavy Usage
Index * Share of Requirements]
Brand Development Index (BDI) = [Brand Sales to Group #
/ Households in Group # ] /[Total Brand Sales # / Total
Households # ]
Category Development Index (CDI) = [Category Sales to
Group / Households in Group] /[Total Category Sales /
Total Households ]
Share of Requirements (%) = Brand Purchases #/ Total
Category Purchase by Brand Buyers #
Heavy Usage Index (I) = Market Share %/ (Penetration
Share * Share of Requirements)
Cannibalization Rate (%) = Sales Lost from Existing
Products/Sales of New Products
BECR = New Product Unit Contribution / Old Product Unit
Contribution
Repeat Volume = [Trial Population X Repeat Rate] X Repeat
Unit Volume X Repeat Occasions
Penetration (t) = [initial Penetration (t-1) X Repeat Rate (t)]
+ First-time Triers (t)
Ex. how many customers we are retaining + new customers
First-time Triers (t) = Total Population X Trial Rate (%)
CAGR% = [(Ending Value / Starting Value) 1 / # of periods] 1
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