Commercial intelligence Flashcards

1
Q

What is gross profit

A

Revenue, minus direct costs (cost of goods sold)

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2
Q

What is operating profit

A

Revenue, minus direct costs (COGS) and fixed costs

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3
Q

What is net profit

A

The final figure after all expenses are deducted (operating costs, COGS, taxes, interest)

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4
Q

What is profit margin

A

Percentage of profit a company generates from its total revenue

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5
Q

What is gross profit margin

A

The percentage of revenue that exceeds the direct costs of producing the goods

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6
Q

What is operating profit margin

A

Represents the percentage of revenue remaining after subtracting COGS and operating expenses

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7
Q

What is net profit margain

A

The percentage of revenue that remains as profit after all expenses, taxes and interest are deducted

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7
Q

What is the calculation for profit margain

A

Profit Margain = (Net Profit/Revenue) × 100
Profit Margin = (£10,000/£100,000) × 100 = 10%

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8
Q

What is contribution

A

How much revenue remains after deducting variable costs

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9
Q

What is break-even

A

The level of sales needed to cover all fixed costs

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10
Q

What is £:£

A

Return on marketing or sales investment

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11
Q

What is £:£ useful for

A

The direct relationship between marketing spend and revenue generation

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12
Q

What is the break-even point calculation

A

Break-even point (units) = Fixed costs/Price per unit − Variable cost per unit

If a company has fixed costs of £10,000, sells a product at £50 per unit and the variable cost per unit (cost of producing each unit) is £30, the break-even point is calculated as:

Break-even point = £10,000/£50 − £30 = 500 units

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13
Q

What is ROI

A

Return on investment

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14
Q

What is ROMI

A

Return on Marketing investment

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15
Q

What is CLV

A

Customer lifetime value

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16
Q

What is CAC

A

Customer acquisition cost

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17
Q

What does CBA stand for

A

Cost-benefit analysis

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18
Q

How is ROMI calculated

A

ROMI = (Revenue from marketing activities-Marketing spend/Marketing spend) x 100

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18
Q

How is ROI calculated

A

ROI = (net profit/cost of investment) x100

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19
Q

How is CLV calculated

A

CLV = Average purchase value x Purchase frequency x Customer lifespan

20
Q

What is NPV

A

Net present value

21
Q

What is CBA (Cost-benefit analysis)) used for

A

Comparing the costs and benefits of a project

22
Q

How is CBA calculated

A

CBA = Total benefits/Total costs

23
What does a CBS ratio greater than 1 mean
Means that the benefits outweigh the costs
24
How is profit margin calculated
Profit margin = (net profit/total revenue) x100
25
How do you calculated CAC
CAC = Total marketing and sales spend/Number of new customers acquired
26
What does ROAS stand for
Return on ad spend
27
What is attrition rate
The percentage of customers lost over a given period
28
What is customer retention rate
Percentage of customers a company retains over a given period Example: If a company starts with 1,000 customers, acquires 200 new customers and ends with 1,100, the retention rate is 90%
29
How is share of voice calculated
SOV = (Brand's ad spend/Total market ad spend) x 100??
30
Time series analysis (forecasting)
This method involves analysing historical data points over time to forecast future trends. Good for seasonality
31
Exponential smoothing (forecasting)
This technique gives more weight to recent data points, making forecasts more responsive to recent trends.
32
Moving averages (forecasting)
Moving averages calculate the average of past data over a specific period, smoothing out short-term fluctuations to highlight longer-term trends.
33
Linear regression
Is a technique that analyses the relationship between two variables—one independent (input) and one dependent (output)
34
Multiple regression
involves analysing the relationship between one dependent variable and two or more independent variables
35
What is descriptive forecasting
Focuses on analysing historical data to understand what has happened in past campaigns
36
What is predictive forecasting
Uses historical data to predict future outcomes, such as sales growth, customer behaviour or campaign performance
37
What is prescriptive forecasting
Goes beyond predicting outcomes by recommending actions based on data Prescriptive forecasting suggests the best course of action to achieve desired marketing results (based on testing)
38
What are Rolling forecasts
provide a dynamic approach to budgeting and planning by continuously updating projections based on the latest data and market conditions.
39
What are the three key areas of commercial intelligence
Market insight / data integration / actional insights
40
What is revenue
Money turned over by the business
41
If a company starts with 1,000 customers, acquires 200 new customers and ends with 1,100, the retention rate is =
90% 1,100 (end no. of customers)-200 (new customers)/1000(customer started with) x 100 (to provide a percentage)= 90%
42
How to calculate NPS
promoter - detractors
43
What is return on ad spend
The number of pounds generated based on advertising spend
44
What is the attrition cost
The financial impact of losing a customer. Example: If the CAC is £100 and 100 customers are lost, the company needs to spend £10,000 to replace them.
45
How to calculate year on year growth
Subtract last year’s figure from this year’s figure to find the difference Divide the difference by last year’s figure Multiply the result by 100 to get the percentage growth or decline year-on-year. For example, if a company made £500,000 in sales last year and £600,000 this year: (£600,000 - £500,000/£500,000) x 100 = 20% YoY growth
46
What is the Delphi technique
Market research - gaining consensus from a large group
47
What are the 5Ms
Manpower, Money, materials, minutes and measurements
48
What are McKinsey's 7s
Strategy, Structure, Systems, Style, Staff, Skills and Shared Values
49