Great Information for Mktg 353

Rafael Aleman

MKTG 353-02

November 29, 2012

In Class review for the final:

It will be done during the last week of semester.

From now on focus on your final exam

The only way to be prepared is to PRACTICE, PRACTICE, PRACTICE!!!

Focus on how to calculate the costs, margins, selling price, markup on cost and markup on price.

While taking your capstone class you will remember her since it takes all the information.

Question #4 will be on your final. You will have to come up with a price that guarantees you cover your cost.

THE TABLE WILL NOT BE GIVEN, IT WILL BE ONLY WORDING.

UNDERSTAND PROBLEM AND WORDING TO SET UP THE TABLE. 30-40% OF GRADE.

Formula is on page 2 of the reading material.

Marginal Analysis and Break-even

Product manager is responsible for pricing product throughout the channels.

How will you sell it to the distributor?

If you are able to sell 10,000 of the device

$26,980

10,000

$24,000

Regional Sales Manager for Ocean Spray.

All major grocery stores are selling product.

He has to bring laptop and have tons of slides ready and ask for 15-30 minute window for apt.

They will show new advertising campaign.

Sales Graph – Increased Sales

The tables show a shift from push strategy to pull strategy.

THIS CASE STYLE WILL BE ON FINAL EXAM! PAGE 5.

Unit contribution is same as mark up.

Margin

Mark up

Mark on

Gross Margin

Gross Profit

Unit contribution

Price – Cost

Price – Variable Cost

For page 5 answer

Don’t type in number, use formulas so that you will get a more exact number.

Put your percentage in a way that is visible instead of making it invisible inside the formula (hiding/ burying in formula)

At break-even point you are not making money but at least you are not losing money, you will be able to sustain.

You need to sustain break-even point. When you break even to evaluate advertising campaign you evaluate promotional strategy. It’s not how cute or fun the campaign is but if it...