1 / 12

Market-Based Management

Market-Based Management. What typifies successful businesses?. Success/Profitability Drivers. 1. Market attractiveness 2. Competitive advantage 3. Market orientation. Profitability. Customer Satisfaction & Retention. Market-Based Strategy & Strategy Implementation. Market Orientation

toviel
Télécharger la présentation

Market-Based Management

An Image/Link below is provided (as is) to download presentation Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author. Content is provided to you AS IS for your information and personal use only. Download presentation by click this link. While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server. During download, if you can't get a presentation, the file might be deleted by the publisher.

E N D

Presentation Transcript

  1. Market-Based Management

  2. What typifies successful businesses?

  3. Success/Profitability Drivers 1. Market attractiveness 2. Competitive advantage 3. Market orientation

  4. Profitability Customer Satisfaction & Retention Market-Based Strategy & Strategy Implementation Market Orientation of a Business

  5. Marketing Orientation Requires…… • Market-based organizational structure • Market-oriented employees • Market-oriented culture • Market-based management systems

  6. A Market-Based Management System... Tracks and communicates both internal and external market performance metrics. Measures market-level profitability.

  7. External Performance Metrics • Indicators of future revenues and profits • Customer awareness • Customer interest • Rate of product trial • Degree of customer satisfaction/dissatisfaction • Customer perceptions of quality and value • Market share • Customer retention • Revenue per customer

  8. Internal Performance Metrics • Sales • ROI • Net profits

  9. Market-Level Profitability • How do marketing expenses impact a firm’s profitability? Net Marketing Contribution (NMC)= Market Demand Market Share Price/ Variable Cost/ Unit Unit Marketing Expenses - x x -

  10. Impact of NMC on net profit…. Net Profit= Operating Expenses Overhead Expenses - NMC -

  11. Breakdown of NMC Formula Market x Market x (Price/unit - VC/unit) - Mkt Expenses Demand ShareMkt Demand (in units) x Mkt Share = Sales volume in unitsSales vol. in units x Price/unit = Sales volume in dollarsPrice/unit - VC/unit = Contribution margin (CM)Price/unit x %margin = Contribution margin/unitPrice/unit - contribution margin/unit = Variable cost/unit

  12. Impact of NMC on Marketing Strategy... Market Demand Market Share Price/ Variable Cost/ Unit Unit Marketing Expenses - x x -

More Related