marketing math Flashcards
fixed costs
same regardless of level of production
ex: salaries, rent, insurance
variable costs
changes with volume of production
manufacturing, shipping, sales commissions
sunk costs
money spent, unrecoverable
market research, R&D,
unit contribution
revenue per unit- variable costs per unit
contribution margin
unit contribution/revenue per unit (in %)
profit (m)
(unit contribution x units sold) - fixed costs
break even volume
fixed costs/unit contribution
sales/ revenue market share
firm sales/ total market sales
volume market share
firm units sold/total market units sold
customer market share
firm customers/total customers
CLV based on purchases
annual contributions per customer per year x years as a customer
annual contributions per customer
unit contribution x units per customer per year
retention rate
(customers at end of period-new customers acquired during period)/ customers at start of period
CLV=
m (r/(1+i-r))-AC
return on marketing investment
incremental gain from investment/cost of investment
