Join Drew Boyd for an in-depth discussion in this video Calculating break-even points, part of Marketing Fundamentals.
…Imagine you create a new promotional program that's going to cost $50,000.…Should you spend it?…Will you generate enough new sales to at least cover this cost?…Because if you don't, you're wasting money.…As a marketer, you need to be able to make these types of decisions and…you do that with a tool called the break-even analysis.…It allows you to estimate how many units of a product you need to sell…in order to break even, assuming a given price and cost structure for the product.…
That amount is called the break even point.…If you sell less than that, you lose money,.…But every unit sold over that is making you a profit.…Here's the formula for break-even analysis.…Break-even point equals fixed cost divided by…unit selling price minus variable costs.…This part with in the parentheses is also called the contribution margin.…It's how much net cash you pocket after paying the variable costs of a product.…
Let's do an example.…Imagine you're selling men's wallets.…You want to promote one of your wallets that sells for $89.…
You'll also learn to address tactical challenges and present the plan to get buy-in throughout an organization, from the C-suite to the sales team, as well as use the marketing plan to guide outside agencies and vendors. Finally, you'll learn how to launch the campaign and measure its performance.
- Marketing in an organization
- Assembling the team
- Creating the marketing plan
- Analyzing your products, customers, and market
- Segmenting customers
- Creating a value proposition
- Developing a strategy
- Setting goals
- Setting prices
- Using social media
- Presenting your plan to leadership
- Budgeting your plan
- Measuring success
Skill Level Beginner
Understanding Marketing's Role
Analyzing Your Business
Developing Your Strategy
Developing the Tactical Phase
Aligning the Organization
Launching and Measuring Your Plan
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