Chapter 8: segmentation
A market segment consists of a group of customers who share a similar set of needs and wants
The major segmentation variables are geographic, demographic, psychographic, and behavioral
o Geographic: in a growing trend
Marketing information system (MIS): it consists of people, equipment and procedures to
gather, sort, analyse, evaluate and distribute needed, timely and accurate information to the
marketing decision makers. It relies on marketing research, comp
What is marketed ?
o Properties (real estate or securities)
o Organizations (companies, universities, museums )
o Information (books, universities )
Eight demand states:
o Negative dema
The time value of money
If you get 1 million $ today, you are supposed to invest it and 1 year later, youll have earned
something. The difference between the value of money of today and yesterday is due to the fact that
you can invest your money.
Corporate Finance Lucas Bornert
Valuati on and CAPM
F V n=C(1+r )n
Stream of cash-flows
( 1+ r )n
PV = 1
( 1+ r )n
Securities = bonds and shares
Arbitrage: you get to the equilibrium price because if two people have the same security
with two different prices, you will buy the lowest-priced one and sell it to the person selling
it at a more expensive price, and this
PV of a perpetuity = C / r
C is the cash flow (equal for every period) and r the interest rate. A perpetuity could be a
bond for example.
PV of a growing perpetuity = C / r-g
g is the growth rate. A growing perpetuity could be a share for example.
Read chapters 7 and 8 from the Pearson book
The idea of capital budgeting is to make decisions on long-term investments. You need to:
o Identify the investment opportunity
o Determine the economic impact: whats the price of the product, its cost etc.
Equity = capitaux propres = fonds propres
The Law of One price = it means the market agrees on one price
Payout ratio = percentage of the earning per share which is paid as a dividend
Dividend yield = dividend year 1 / P0