S6MarketingMixValueAnalysis

S6MarketingMixValueAnalysis - Statement of Product Manager...

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Statement of Product Manager Income* Statement of CRM Segment Manager Income Gross sales Gross sales Less: Less directly measured customer specific costs** Returns Customer returns Allowances and adjustments Customer credit cost, allowances/adjustments Net sales - Customer discounts Cost of goods shipped Customer ordering/shipping/delivery costs Cost of goods returned Customer direct selling costs Net cost of goods at std. cost Customer direct marketing/promotion costs Other production costs Customer after-sales service costs Direct cost of goods sold to customer Gross margin - Gross Margin - Less: Less: Advertising and promotion Marketing, sales, service fixed costs Consumer media Advertising and promotion Trade and consumer promotion Consumer media Professional advert./promotion Trade marketing and promotion Web-site maintenance Delivery Other sales support program costs Discounts Functional administration and overhead Market research Advertising Marketing Product manager income - Sales Other marketing costs Service and customer support Field selling Performance system control measurement Shipping Market research Advertising administration Other marketing overhead costs Marketing administration Total marketing fixed costs - Sales administartion Sales/marketing systems Customer service Customer service systems Total other marketing costs - Nonmarketing expenses Nonmarketing expenses Research Research General administration General administration Other expense Other expense Other income Other income Total nonmarketing expense - Total nonmarketing expense - Operating contribution Operating contribution
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Capital charge Capital charge Profit contribution Profit contribution
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Marketing Mix Value Analysis Net Present Value and IRR. This is because if you do not think in terms of NPV and do not present an NPV or IRR analysis then it is likely that Finance will undertake such an analysis, and if they do you may lose the initiative and control of the project, and a lot of credibility with senior management. It can be rightly claimed that you do not understand the profitability prospects of your project and that makes you look dumb. In legal terms it also is a lack of diligence on your part. Another really important point is to be thinking always about shareholder value. Net present value is a measure of capital creation, and creating shareholder capital is what managers as agents for owners are paid to do. Thus, managers who do not understand NPV are far less capable of understanding the shareholder value implications of their management. Increasing your understanding of NPV greatly increases your capability as an economic agent of owners/shareholders. We call the analysis processes we are about to teach you Present Value prospecting because you are assessing the prospects of your projects or spending in terms of metrics such as present value, rate of return on investment of assets and the project's shareholder value creation prospects. PVprospecting is prospecting for gold, that is, for shareholder value
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S6MarketingMixValueAnalysis - Statement of Product Manager...

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