Professional Documents
Culture Documents
Market-Based Management
Market-Based Management
Success/Profitability Drivers
1. Market attractiveness
2. Competitive advantage
3. Market orientation
Market-oriented employees
Market-oriented culture Market-based management systems
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
Market-Level Profitability
Mkt Demand (in units) x Mkt Share = Sales volume in units Sales vol. in units x Price/unit = Sales volume in dollars Price/unit - VC/unit = Contribution margin (CM) Price/unit x %margin = Contribution margin/unit Price/unit - contribution margin/unit = Variable cost/unit
Market x Market x Price/ -Variable Cost/ - Marketing Demand Share Unit Unit Expenses