PromotionProfitability_pre

PromotionProfitability_pre - Mktg443 BASICS Gross Margin...

Info iconThis preview shows pages 1–8. Sign up to view the full content.

View Full Document Right Arrow Icon
PROMOTION PROFITABILITY Mktg 443
Background image of page 1

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
SALES PROMOTION PROFITABILITY: BASICS Unit cost Gross Margin Net Dollar sales per unit Units sold Net Sales Unit cost Gross Margin Margin per unit Units sold Gross Margin before Promotion
Background image of page 2
SALES PROMOTION PROFITABILITY: BASICS How does sales promotion affect product profitability?
Background image of page 3

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
CONSUMER PROMOTION  PROFITABILITY:  PRICE DISCOUNT EXAMPLE Margin per unit Units sold Gross Margin after Promotion Unit Cost Margin Discount Gross Margin after Promotion Costs Gross Margin before Promotion Costs > ? Promotion costs 1 2 3
Background image of page 4
SALES PROMOTION PROFITABILITY:  PREMIUM EXAMPLE Margin per unit Units sold Gross Margin after Promotion Cost of Goods Margin Gross Margin after Promotion Costs Gross Margin before Promotion Costs > ? Promotion costs 1 2 3
Background image of page 5

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
POSITIVE: INCREASING SALES BASE VS INCREMENTAL SALES No Promotion Promotion Period Base Sales Incremental Sales
Background image of page 6
POSITIVE: INCREASING SALES BASE VS INCREMENTAL SALES Base Sales at Regular Price Brand X
Background image of page 7

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
Image of page 8
This is the end of the preview. Sign up to access the rest of the document.

Page1 / 13

PromotionProfitability_pre - Mktg443 BASICS Gross Margin...

This preview shows document pages 1 - 8. Sign up to view the full document.

View Full Document Right Arrow Icon
Ask a homework question - tutors are online