jamming strama Flashcards
(168 cards)
Total revenue (R; the total amount of money taken in) equals average price (P; the
average amount received for each individual unit sold) multiplied by quantity sold (Q; the
number of units sold)
Formula: R = P * Q
Total variable costs (TVC; the costs of goods sold) equals variable costs per unit (VCu;
the cost of each unit sold) multiplied by quantity sold (Q)
Formula: TVC = VC/u * Q
Total revenues (R; money in) minus total costs (C; money out) equals profit (n; the
money the firm can keep)
Formula: R - C = n
refers to how costs related to selling a product or service are categorized for
business purposes. It has several variables that define it and allow a business to determine
operating costs on a broad, company-wide level or an individual product level.
Cost Structures
Total costs (C; the overall total paid out to operate the business) equal total variable
costs (TVC) plus total fixed costs (FC or “overhead”; costs that don’t vary with production
or change across levels of sales):
Formula: C = TVC + FC
Sensitivity Analysis
- is a tool used in financial modeling to analyze how the different values of a set of
independent variables affect a specific dependent variable under certain specific
conditions
Sensitivity Analysis
relates the demand for a commodity, such as gasoline, to changes in the price of that commodity
price elasticity of demand
change depending on how many products or services a business sell. As
a business grows, offers new products or increases sales of a product, its variable costs
may increase. These often include direct labor costs, bonuses and commissions, travel
expenses, direct material costs, payroll taxes and marketing costs.
Variable costs
are business expenditures that don’t change, regardless of how many
products or services the company sells. Fixed costs can include rent, utilities, property
taxes and salaries. These expenses may fluctuate month to month, but they don’t
change based on the number of goods or services the business sells.
Fixed costs
refers to responsiveness of demand. In other words.
is a measure of changes
in demand/sales due to changes in any marketer input, including things like advertising, sales
effort, and so forth.
Elasticity
Objectives are specific, measurable outcomes that you aim to achieve in the short to
medium term. They are often quantitative and serve as benchmarks for progress.
Understanding Objectives
are key financial concepts used to determine the profitability of
products or services. Although they are often used interchangeably, they have distinct
meanings and calculations.
Margins and mark-ups
allows you to either invest a lump sum or make regular payments to build up funds,
which then provide you with a series of payments in the future. It’s a way to manage money over
time, ensuring that you have regular income or a structured financial plan for future needs.
Annuity
Tactics are specific actions or steps taken to implement the strategy and achieve the
objectives. They are more detailed and short-term compared to the overarching strategy.
Understanding Tactics
is the amount added to the cost price of a product to determine its selling price.
It is expressed as a percentage of the cost price.
- shows how much more a company’s selling price is than the amount the item
costs the company.
Mark-up
- refers to the difference between the selling price of a pro
-refers to the revenue a company makes after paying COGS. The profit margin is
calculated by taking revenue minus the cost of goods sold.
margin
● Where are we now?
● Where do we want to go?
● How do we get there?
All strategic marketing plans pose and answer three fundamental questions:
All strategic marketing plans pose and answer three fundamental questions:
● Where are we now?
● Where do we want to go?
THE STRATEGIC MARKETING PLAN ASSESSMENT
A strategy is your company’s overall plan of action to achieve long-term goals. It
encompasses the broad, high-level approach that guides decision-making and resource
allocation.
Understanding Strategy
refers to situations where the learning process is not
as effective or productive as it could be, leading to suboptimal outcomes for students
and educators. Although the case method is widely regarded as a powerful tool for
developing critical thinking, problem-solving, and decision-making skills, inefficiencies
can arise due to various factors.
Inefficiency in the case method
“If you hold a cat by the tail, you learn things you cannot learn any other way.”
Mark Twain
