Quiz 1 Study Flashcards
Sales Forecasting: Bases Model part 1: trial
- Households
- Adj purchase intent
- Awareness
- Distribution reach
- trial rate (234)
- trial HHs (1*5)
- trial units per hh
- total trial units (6*7)
Sales Forecasting: Bases Model part 2: repeats
- number of trial hhs
- repeat rate
- number of repeat HHs (9*10)
- repeat visits
- repeat units at each visit
- total repeat units (111213)
Break-Even Cannibalization Rate =
New Product unit contribution / Old Product unit contribution
actual cannibalization rate must be lower than the BECR in order for the new product introduction to be profitable
Chain Models of Segment Value
Segment value = # of customers * value per customer
where:
# of customers = population * segment size % * segment penetration
Customer Lifetime Value
profit 0 * repeat rate 0 + (profit 1 * repeat rate 1) / (1 + discount rate)^1 + (profit 2 * repeat rate 2) / (1+discount rate)^2 + … + (profit T * repeat rate T) / (1+discount rate)^T - AcquisitionCost
What are the two questions we ask to identify what a company’s strategy is/should be?
What is your target market?
What is your value proposition?
What questions are asked to determine what the target market is?
Who benefits from your product/service?
Who can you serve profitably?
What questions are asked to determine what the value proposition is?
What benefits does your product/service provide?
What differentiates you from competitors?
What is segmentation aligned with?
Target market
What is Targeting aligned with?
Target market
What is positioning aligned with?
Value proposition
What is segmentation?
dividing a market into segments of strategically similar customers
What is targeting?
valuating segments and selecting one or more as your target customers
What is positioning?
how your product/service fits into the market relative to your competitors. It is achieved using the 4Ps
What are the 3 Cs? 5 Cs?
Customer, Company, Competition
Collaborators, Climate
Customer (things to evaluate):
potential segmentation and targeting, market sizing, projected sales/profitability
Company (things to evaluate):
which of the 4Ps are most important?
Competitive advantage? strengths & weaknesses?
Competition (things to evaluate):
rivals? Market share of each? How are you differentiated or positioned? What are ur opportunities/threats?
Collaborators (things to evaluate):
how do your suppliers/intermediaries/other partners contribute to your Strengths and Weaknesses
Climate (things to evaluate):
what factors in your environment contribute to opportunities and threats
What are the 4 Ps
product price place promotion
What are the 5 steps and 3 phases of a Strategic Marketing Plan?
planning phase:
step 1: business mission & objectives
step 2: situation analysis + SWOT
implementation phase:
step 3: identify opportunities
step 4: implement marketing mix
control phase:
step 5: evaluate performance using marketing metrics
What’s the difference between a marketing strategy and marketing tactics?
strat: means by which a marketing goal is to be achieved (target market/program)
tactics: detailed day-to-day operational decisions that contribute to marketing strategies
Market size =
of buyers * # of units per buyer & avg. price
Market share =
company sales / total market sales
Break-even quantity (TBEV Total Break-Even Unit Volume)
Fixed Cost / Unit contribution
Unit contribution =
(unit selling price - unit variable cost)
Projections are sensitive to _____ and _____.
assumptions & risk
assumptions should be grounded in careful market research
risks need to be understood
What are the 3 dimensions of customer value?
functional value, psychological value, monetary value
