241 W12 C3 Context and P&L

241 W12 C3 Context and P&L - Chapter 3 Think...

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Unformatted text preview: Chapter 3 Think Strategically. 1.  2.  3.  4.  5.  BCG Growth- Share Matrix SWOT The 4 C’s Segment, Target, Posi@on The 4 P’s Understand Value Context “The 4 C’s” Company Consumers Segment Competitors Channel Target Position (Differentiate) Place Promotion Create Value “The Marke/ng Mix – The 4 P’s” Product Capture Value Sustain Value Price “CRM” Customer Acquisition Customer Retention Pro ts Context “The 4 C’s” Company Consumers Competitors 4 C’s Channel TAKING THE MYSTERY OUT OF THE P&L NON- OP EXPENSE COST OF CAPITAL CCR’S OFF INVOICE SG&A GM PCM BILL BACK PBT CCR’S EMF NON- OP EXPENSE SG&A A&P A&P VCR VARIABLE TRADE RATE ENABLERS CCR’S ENABLERS PCM BILL BACK EMF GM EVENT SG&A PBT COST OF CAPITAL “The Bond Budget” “The Brand P&L” Salary Gross Sales (Sales * Price) - Taxes - Trade Take Home Pay Net Sales - Insurance - Home - Car - Food - Product Costs My Money Gross Margin - Investments - College Funds My Fun Money - Movies Balance - Overhead - Transporta/on - Warehousing - Ads & Promo/ons - Market Research Contribu/on Margin (NMC) - G&A Opera/ng Income “The Brand P&L” Gross Sales 1 - Trade Net Sales - Product Costs - Overhead 2 - Transporta/on - Warehousing Gross Margin 3 - Ads & Promo/ons - Market Research Contribu/on Margin - G&A Opera/ng Income 4 Store/Discount expenses: Shelving, Coupons, etc. Cost of making product and geHng it to the store Consumer messaging and research Misc. expenses “The Brand P&L” What Percentage o f my Take Home Pay Is R eally Mine? Gross Sales - Trade Net Sales - Product Costs - Overhead Gross Margin “My Real Money” - Transporta/on GM%? - Warehousing Net Sales “My Take Home Pay” Gross Margin - Ads & Promo/ons - Market Research Contribu/on Margin - Movies Opera/ng Income PCM%? Contribu/on Margin Net Sales **Always divide by Net Sales** §༊  Jeff has just printed his newly written book “How to get an “A” in Marketing 241. He decides to sell the book at Barnes and Noble for $10 each. He anticipates selling 2 million copies. §༊  The cost of getting his book into Barnes and Noble is $1.5 Million Dollars. §༊  The cost of printing the paperback book is 40% of his Gross Sales. The cost of warehousing the book is $0.50 per book. §༊  He invests $1 million dollars in market research and $5 million dollars in magazine advertising. §༊  Create the P&L. What is the GM%? What is the PCM%? “The Brand P&L” “Jeff’s P&L” Gross Sales (Sales * Price) $20,000,000 Gross Sales - Trade - 1,500,000 Trade Net Sales $18,500,000 Net Sales - Product Costs - 8,000,000 Product Costs - Overhead - 1,000,000 Warehousing - Transporta/on - Warehousing $9,500,000 Gross Margin Gross Margin - Ads & Promo/ons - Market Research Contribu/on Margin (NMC) - G&A Opera/ng Income - 5,000,000 Ads & Promo/ons - 1,000,000 Market Research $3,500,000 PCM or NMC GM%= 51.3%; PCM%= 18.9% §༊  §༊  §༊  §༊  ROMI Break Even Analysis (volume and pro t) Gross Margin % Product Contribution Margin % ...
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This note was uploaded on 02/29/2012 for the course BUS M 241 taught by Professor Swenson,j during the Winter '11 term at BYU.

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