MKT 300 : mktcheetsheet.docx

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

Document Summary

How to read it r ~ 1= extremely high positive correlation between the measures. r ~ zero =no correlation. Ex) 0. 20 very weak positive relationship. r ~ -1 =extremely high, inverse/-ve relationship btwn measures: one is high, the other is low. Ex)correlation coefficient of 0. 7 ^2 is sub% explains 58% of profit margin% Expected sales quantity in units: exp [mkt size x mkt share] Variances between expected (sometimes called standard costs) and actual costs and prices are called contribution variances (or price-variable cost variances). Ex) marketing program costs or manufacturing & general overhead costs. Price/cost variance: diffference between market share * actual market size* exp cm. Market share variance: : diffference between market size * exp market share* exp cm. Market size var: diff btwn sales in quantity x exp cm. Total variance = cm+mkt share + mkt size + fc var. [beginning of year 2, all past costs are sunk and common to whatever action you take next.