MKT 300 Study Guide - Midterm Guide: Gross Margin, Bulgarian Lev, Capital Asset Pricing Model

• School: Ryerson University
• Department: Marketing
• Course: MKT 300
• Professor: Cynthia Mason

Document Summary

Value based marketing: company"s primary obligation is to maximize: (i) return from capital appreciation; and (ii) dividends earned by common shareholders stock"s market value depends on investors" expectations of the cash-generating abilities of a firm"s business units. Value is created when the financial benefits of a strategic activity exceed the costs. Balanced score card: vision and strategy:financial, internal business process, learning and growth, Learning and change measures (employee retention): key internal business process and measures (process output/costs/waste/speed), 3. Product profitability: operating leverage = cm/ebit (contribution margin / operating income. Breakeven = total fixed costs (tfc) = contribution margin & operating income = zero. Marketing cost management: easier to control and manage the supply side (e. g. costs and resources) than it is to control and manage consumer demand. cost control is an important principle of marketing systems control and its metrics. Good marketing must consider cost and profit metrics and the bottom-line profitability implications.