# 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.

000 \$24. He has to bring laptop and have tons of slides ready and ask for 15-30 minute window for apt. Sales Graph – Increased Sales The tables show a shift from push strategy to pull strategy.000 Regional Sales Manager for Ocean Spray. They will show new advertising campaign.000 of the device \$26. . All major grocery stores are selling product. THIS CASE STYLE WILL BE ON FINAL EXAM! PAGE 5.980 10.How will you sell it to the distributor? If you are able to sell 10.

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. you will be able to sustain. . 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.Unit contribution is same as mark up.

Product. Increase advertising Promotions (Price. When you break even to evaluate advertising campaign you evaluate promotional strategy. Formula is on page 7 Formula: Unit Contribution = Unit Price . because break even is at 11% and we are scheduled to make 13% You have to find these 4 pieces of information to come up with proposal for mktg strategy. 1) What is unit contribution of this product 2) How many product do I need to sell to Break Even 3) What is my target market share 4) What is the current profit they are making right now. distributors Reduce price to stimulate demand .Unit Variable Cost Breakeven in Units = Total Fixed Cost / Unit Contribution Incremental Breakeven Units = Additional Fixed Cost / Unit Contribution Incremental volume required to justify expenditure = Incremental Expenditure/unit contribution Incremental Market Share = Incremental Breakeven Units / Projected Total Market Profit impact = Unit Contribution * Sales Unit – Fixed Cost Target Sales Volume = (Present Fixed Cost + Additional Fixed Cost + Projected Profit) / Unit Contribution Market share percentage Brand sales / Industry Sales Remember correct number of zeroes when entering millions or billions According to our forecast. If industry is expanding what should you do next year? Sell more.You need to sustain break-even point. will we make money first year? Yes. It’s not how cute or fun the campaign is but if it makes profit or break even.