Module 4: Output Measures: Business Flashcards
1
Q
What is the most important business measure?
A
The net profit generated by the campaign.
2
Q
What are two key sources of sales data?
A
- Ex-factory data
2. Offtake (or consumption) data
3
Q
What is the relationship between ROI and market share?
A
As market share increases so does ROI.
4
Q
What are4 types of output measures - business?
A
- Net profit
- Sales
- Market share
- Pricing (e.g. elasticity)
5
Q
How do you figure out how much of the sales increase is because of the campaign?
A
Look at incremental sales.
6
Q
How do you calculate PED and what does it mean?
A
Change in sales/Change in price
PED > 1 means Price Elastic
PED < 1 means Price Inelastic
PED = 1 means Unit Elastic
7
Q
What are some examples of softer business measures?
A
- Employee engagement
- Talent retention
- Relationships with key partners
