Cheatography

# MARK 301 - FINAL NOTES Cheat Sheet (DRAFT) by m4disen

This is a draft cheat sheet. It is a work in progress and is not finished yet.

### FORMULAS

 % Margin on Cost = % Margin on SP/(100% - % Margin on SP) % Margin on Selling Price = % Margin on Cost(100% + % Margin on Cost) Contri­bution = Total Revenue - Total Variable Costs Unit Contri­bution = Selling Price - Unit Variable Costs Fixed Costs = Unit Contri­bution * BEQ BEQ = Fixed Costs / Unit Contri­bution Profit Impact = (Unit Cont. * Units Prod. & Sold) – Fixed Costs (– cannib­ali­zat­ion–if any) CLV = Lifetime Value - Acquis­ition Cost LV = Customer Lifetime (in months) * Monthly Profit Customer Lifetime (in months) = 1/monthly churn rate Customer Monthly Profit = Gross Margin – Assigned Costs AC = Initial Cost to Acquire Cost. (usually ads + sales) ROMI = (Margin - Invest­ment) / Investment * If market share is given in \$, divide by retail selling price to obtain market value in units * Assume Margin on SP unless otherwise specified
MARGIN STRUCTURE = M > W > R

### 5-Step Method­ology

 1 - Problem Statement State the PROBLEM in one or two sentences; major objectives + a listing of major overriding factors 2 - Situat­ional Analysis Strength & Weaknesses (w/i company's ctrl) ; Opport­unities & Threats (out of ctrl) 3 - Identi­fic­ation and Evaluation of Altern­atives Find alts and elaborate on pros/cons of each. 4 - R&R / BUY-IN the math, the decision criteria, time to sell recomm­end­ation 5 - Plan of Action ST (6 months) vs LT (18 months)

### Pricing

 Value Mindset = Focus on Customer Value (no cost) True Economic Value = Objective Value Perceived Value = Value Attributed by Customer Price ≤ Perceived Value, but, Price > COGS Dynamic Pricing considers product variation, contro­lling availa­bility, and geogra­phi­cally. % Change in Quantity ÷ % Change in Price = Price Elasticity of Demand company prices a solution (and not a product) capturing value is more important than maximizing sales

### Customer Experience (CX)

 Customer Journey (CJ) Sum of customer intera­ctions with brand. Goal of CJ Make journey sticky through except­ional & person­alized experi­ence; creates customer engage­ment. Pillars of Customer Experience Person­ali­zation, Integrity, Expect­ations, Resolu­tion, Time & Effort, and Empathy Journey Management Capabi­lities Automa­tion, Proactive Person­ali­zation, Contextual Intera­ction, and Innovation Steps in CJ MAP understand target; map out touchp­oints; identify customer pain points; reg. assess comp. perf. ; prioritize + fix roadblocks ; update & improve

### Retailing

 Strategy : Segmen­tation & Targeting; Store Differ­ent­iation & Positi­oning Marketing Mix : Product & Service Assort­ment; Retail Prices; Promotion, and Distri­bution (incl. location) Omni-C­hannel Retailing : integr­ation of online and offline shopping behaviours to create seamless experience goal = achieve a better shopping experience + increase conver­sions

### Branding

 Brand Equity includes: Brand Loyalty, Brand Awareness, Perceived Quality, Brand Associ­ations Other Assets include patents, intell­ectual property.. Purpos­e-D­riven Branding = having compelling reason for being, beyond profit + living out desire to impact society positi­vel­y/p­urp­ose­fully Major Brand Portfolio Strategies = * Mono-Brand (or Branded House) where single brand is used on all products. ie. crocs * Multi-­Brand (or House of Brands) individual brand names created for diff products + corporate name is hidden from view/m­ini­mized. ie. P&G - Tide&Gain Multi-­Bra­nding Pros: greater flex. w/ differ­ent­iating + custom­izing; commands greater retail presence (shelf­-sp­ace); less risk for brand reputa­tion. Cons: brand-­bui­lding requires high capital inv. ; no benefit of existing brand equity

### Marketing in a Digital World

 This is the new normal for marketing. Without digital presence, brands are already at a disadv­antage. Main Benefits * improved measur­ement * improved targeting Impact on Target Market: greater volume + accuracy of info, easy to micro-­target, easy access to customer, geogra­phical data Impact on Product: easy to obtain benefi­ts/­fee­dback, person­ali­zation, tech facili­tates augmen­tations Impact on Price: dynamic pricing, price discri­min­ation, instan­taneous price comparison Impact on Distro: direct­-di­stro, omni-c­hannel = req., tracking increases cust. delight Impact on Marketing Comms: 1-on-1 tracking, adjust­abi­lity, content challenge, greater integr­ation = req., consumer = always "­on", targeted messages Marketing Funnel: Awareness > Consid­eration > Intent > Purchase