Premium Essay

Marketing Study

In: Business and Management

Submitted By yusuf7yk
Words 4311
Pages 18
12

Marginal Costing
Basic Concepts

Marginal Cost

This is the variable cost of one unit of product or a service.

Marginal Costing

It is a principle whereby variable cost are charged to cost units and fixed cost attributable to the relevant period is written off in full against contribution for that period.

Absorption
Costing

A method of costing by which all direct cost and applicable overheads are charged to products or cost centres for finding out the total cost of production. Absorbed cost includes production cost as well as administrative and other cost.

Direct Costing

This is a principle under which all costs which are directed related are charged to products, processes, operations or services, of which they form an integral part.

Differential
Costing

It is a technique used in the preparation of ad-hoc information in which only cost and income differences in between alternative courses of action are taken into consideration.

Marginal
Contribution

This is the difference between selling price and variable cost of production. Break-even
Chart

A mathematical or graphical representation, showing approximate profit or loss of an enterprise at different levels of activity within a limited range.

Break-even
Point

This is the level of activity there is neither a profit nor a loss.

Cash Break-even
Point

It is the level of activity where there is neither a cash profit nor a cash loss.

Cost Break-even
Point

It is the level of activity where the total cost under two alternatives are the same. It is also known as Cost indifference point.

Profit
Chart

It is a diagram showing the expected relationship between costs, revenue at various volumes with profit being the residual.

Volume

© The Institute of Chartered Accountants of India

Marginal Costing

12.2

Volume or P/V

It...

Similar Documents

Premium Essay

Study Marketing

...any business. Quality feedback is the most accurate way to guarantee the market acceptance for your product. Having in mind that we already using advertising and personal selling I think our feedback will point the implementing of public relations, sales promotions and direct marketing. This implementing will help improve quality and quantity to the eye of the consumer: * Advantages of Public Relations Public relations are indirect, unpaid communications through news outlets and other credible sources. This type of marketing communication requires the cooperation of the news media. Consumers are likely to believe public relations messages above all other types of marketing communications. Public relations reach consumers best before they make their purchase. * Advantages of Sales Promotions Sales promotions are discounts such as coupons, sales and giveaways. This type of marketing communication is highly effective at changing consumer response at the time of purchase. Marketers often use this type of communication in the maturity stage of the product life cycle to spur renewed interest and to remind consumers of the product. * Advantages of Direct Marketing Direct selling is marketing communication through postal mail, email or over the telephone. It's information that's prepared quickly and customized to consumers whose contact information is kept in the business's database. Direct selling creates a...

Words: 322 - Pages: 2

Premium Essay

Marketing Case Study

...Marketing Case Studies Innovative and creative marketing is more important than even in a shaky economic climate. Here's some of the best strategies we've found for quickly moving your brand from intriguing concept to household name. Brand Marketing: Guinness How do you refresh a 243-year-old brand? By brewing a modern experience that combines the power of history with the allure of contemporary design. Guinness Storehouse, in Dublin, reimagines how a brand can perform for customers, employees, and the community. Scott Kirsner Are Brands out of Hand? A new kind of brand proletariat is on the loose, courtesy of Harvey Alpert, the man behind Brand in Your Hand. Jack Hitt Battle of the Brands John Hancock`s outspoken CEO names names and points fingers at some high-profile brand offenders in his new book. He also offers some good advice on not screwing up your own company`s brand. Jennifer Reingold Don`t Shout, Listen At Procter & Gamble, branding is almost everything. And in the age of the Web, almost everything is up for grabs. Here`s how P& G has turned the Internet into a device for listening to customers -- and for experimenting with its brands. Fara Warner Who`s Fast Hall of Fame: Brand Builders Brand builders forging product identities that endure and entice. Fast Company Cleaning Up Brand Clutter With 35 varieties of bagels, 66 subbrands of GM cars, and more than 13,000 mutual funds, American consumers are suffering a severe case of brand overload.......

Words: 420 - Pages: 2

Premium Essay

Marketing Case Study

...Course Name: International Business and Marketing Instructor’s Name: Prof. Dr. Britta Bergemann E-mail: britta.bergemann@stw.de Class Time: 2.00PM – 8.00PM 1. Course Description This course looks at international business and marketing topics in theory and practice (case studies). It aims at building students’ awareness of business and marketing mix issues in the global context, and provides the tools to manage products and brands globally. 2. Overview This course offers a framework that allows students to see the big picture. After laying the foundations students will learn about the fundamentals and strategic impact of globalization on today’s business decisions, and how to position, communicate and price products globally. Along the way students will also see how companies are dealing with global marketing issues due to a wealth of case studies and examples. 3. Learning Outcomes Upon successful completion of this course, students will have acquired: An overview of international business strategies An overview of current marketing principles and practice An in-depth understanding of the concepts required for developing and managing global markets An evaluation of the changes that have occurred in the competition for global markets A deeper look at the causes of cultural differences The ability to effectively apply analytical criteria in order to evaluate opportunities of global The ability to take global marketing decisions and manage processes......

Words: 996 - Pages: 4

Free Essay

Marketing Case Study

...Case Study The information in the Case Study is used each week when writing the individual sections of the Marketing Communications Plan. One of your neighbors has just inherited a restaurant in a small town about 75 miles away. They’ve never owned or operated a business before, and know very little about marketing or the restaurant business. They now have a Marketing Plan, but need help with the Marketing Communications Plan. General Restaurant Information Provided by Your Neighbors: 1. They want to keep the “family’s” restaurant as a legacy to their family members who left it to them. However, they will need to make money immediately in order to replace the income they lost when they quit their jobs to run the restaurant. 2. The restaurant has been losing sales/profits over the past few years.  Family members have had some health issues (and have since passed away) and have not had the time to manage the restaurant effectively.  For the past few months, the Chef and some of the servers have been keeping the restaurant open. 3. The restaurant has a good reputation in the small community.  The town has a population of 6,000 people.  It is in a good location (right off an interstate) and does additional sales catering to local businesses in the area.  Over-the-road semi-drivers say it is the best cup of coffee in town and town’s people know that you can always find the local sheriff and highway patrol officers eating there.  People are allowed to smoke at......

Words: 796 - Pages: 4

Premium Essay

Marketing Case Studies

...CASE STUDY: Whitening Creams As if whitening creams for women were not enough, now the trend seems to have caught on with men as well, with various brands like Fair Menz and Fair & Handsome making inroads into the Pakistan market. Fair & Lovely (by Unilever) is credited to be the brand that set off the trend, followed by a dozen or so low priced imitators. Then there is the high-end market which is catered to by prescription creams, lotions and dermatological treatments. Whatever the profile, complexion seems to have assumed the proportions of a “complex” within the Pakistani consumer psyche. Even other skin-care products like sun- blocks, hair removing creams, facial scrubs etc., now claim to have “whitening” properties. QUESTIONS: 1. How do you analyze this “complexion complex” from the Psychoanalytical perspective? Do marketing messages for these whitening creams and products target the Id, Ego or Super Ego in any way? Do they even create triple appeal?  2. How is the Consumer Behavior being influenced for these products in terms of Learning? Which kind(s) or Learning (Behavioral, Cognitive, and Reinforcement) is/are taking place which has resulted in spreading the use for these products?  3. Explain how Informational, Identification and Normative influences may shape consumer behavior in for these products? CASE STUDY: Streetcar Streetcar was established in 2002 by Andrew Valentine and Brett Akker who came across the idea after......

Words: 465 - Pages: 2

Premium Essay

Marketing Study Guide

...MKGT310 Final Exam Study Guide YOU MAY WANT TO PRINT THIS GUIDE. 1. The Final Exam is open book and open notes. The maximum time you can spend in the exam is 3 hours, 30 minutes. If you have not clicked the Submit for Grading button by then, you will be exited from the exam automatically. In the Final Exam environment, the Windows clipboard is disabled, so you will not be able to copy exam questions or answers to or from other applications. 2. You should click the Save Answers button in the exam frequently. This helps prevent connection timeouts that might occur with certain Internet service providers and also minimizes lost answers in the event of connection problems. If your Internet connection does break, when you reconnect, you will normally be able to get back into your Final Exam without any trouble. Remember, though, that the exam timer continues to run while students are disconnected, so students should try to log in again as quickly as possible. The Help Desk cannot grant any student additional time on the exam. 3. See the Syllabus section "Due Dates for Assignments & Exams" for due date information. 4. Reminders * You will only be able to enter your online Final Exam one time. * Click the Save Answers button often. * If you lose your Internet connection during your Final Exam, log on again and try to access it. If you are unable to enter the Final Exam, first contact the Help Desk and then your instructor. * You will always be able to......

Words: 1238 - Pages: 5

Premium Essay

Marketing Case Study

...Aleksandra Gavazova BUS-201-004 Case Study #1: Besitti’s Restaurant 22-September-2015 To begin with, Rosa already had another restaurant that was, and it is, probably still doing well under the control of her brother, so she has a profound understanding of how restaurants work as well as years of experience. Franchise chains are a good option for people who are completely new in the field, because the franchise company gives them all the training they need, a ready strategy that they only need to follow, and an established clientele of the brand who are familiar with the products and quality of the company. It looks like Rosa really knows what she is doing and understands the restaurant business in its foundations, because she is going step by step through the three main Marketing Management Processes. First, she made her planning in details and made a really good choice with the location (place), which is one of so called “Four Ps” of Variables in the Marketing Mix. After that, Rosa went to the second marketing management process—the implementation of her strategy, which she did successfully, because even at the beginning when she opened her restaurant, it wasn’t working on loss. The restaurant was always at least covering its costs for maintainance, which for a newly open place is a big achievement. Rosa shouldn’t be so scared from the franchise chains around her and neither from the pizza that it may come in the same shopping center, because she has a unique......

Words: 485 - Pages: 2

Premium Essay

Marketing Study Guide

...Marketing Study Guide Test 1 1. A target market is a. One or more specific groups of potential consumers toward which an organization directs its marketing program 2. The first task of a market is to b. Discover the needs of consumers 3. The four Ps of the marketing mix are c. Product, promotion, price, and place 4. ___ is a trade of things of value between a buyer and seller so that each is better off d. Exchange 5. One or more specific groups of potential consumers toward which an organization directs its marketing program is e. A target market 6. Which of the following statements best defines needs and wants f. Needs occur when a person feels physiologically deprived of something and wants are determined by a person’s knowledge, culture, or personality 7. The four utilities created by marketing are g. Form, place, time, and possession 8. According to the American Marketing Association ___ is an organizational function and a set of processes for creating, communicating, and delivering value to customers and for managing customer relationships in ways that benefit the organization and its stakeholders h. Marketing 9. The activity in which two or more parties give something of value to each other to satisfy perceived needs is known as i. Exchange 10. The societal marketing concept is j. The view that an organization should discover and satisfy the needs of its......

Words: 3406 - Pages: 14

Premium Essay

Marketing Case Study

...Cassie Smith International Marketing Case Study 3: Microwave Ovens Microwave ovens were first introduced in the commercial market in 1952 and has been gaining popularity ever since, growing to become a standard kitchen appliance in most households. However, the potential growth may have been on a standstill in the market of South-East Asia. Microwaves aren’t the first-option to cook with in India compared to European countries or the United States. The Indian culture prefers to cook in the kitchen using fresh ingredients, herbs, and spices rather than use a conventional microwave as compared to the Western culture. Some people of the culture tends to think that the dishes will taste different if it was cooked in the microwave versus the stove/oven. Microwaves are beginning to become an emerging trend in some small towns in India. So much so that the microwave oven is beginning to replace the demand for a 2nd television or bigger television. Marketers have the challenging task of convincing the Indian consumer that microwaves are suited to not just reheat but to also cook Indian food. The target customers are middle class people living in either an urban or suburban area. They would be college graduated or higher, age 22-40 years old, with an income of over Rs 30,000. The targeted lifestyle would be for modern cooking, or a hurry-up lifestyle, or a growing family that likes to spend time together. The product should have features that would increase the likeliness of......

Words: 697 - Pages: 3

Premium Essay

Marketing Case Studies

...Nava Lucrezia CH 19-20-21-22 row 1 Facebook 1) Facebook has brought a whole new level of personal marketing to the world of business. The social networking web site fulfills people’s desire to communicate and interact with each other and uses that power to help other companies target very specific audiences with personalized massages. The site allows users to create personal profiles with information such as their hometowns, work, educational background, favorite things, and religious affiliation. It encourages them to extend their network by adding other users as friends, and many people try to see how many “friends” they can accumulates. Facebook is fulfilling its mission to give people the power to share and make the world more open and connected. Person marketing is a part of direct marketing, the use of consumer-direct channels to reach and deliver goods and services to customers without using middleman, is crucial nowadays as people’s needs tend to be more specific, so in order to understand them, a one-to-one approach is becoming essential. In addition the traditional channels (such as mass media, rallies, coffee hours, spot TV ads, direct mail) can not guarantee a new and up-to-date way to be know by the audience. People around the world, also politicians and VIPs, use Facebook to push their campaigns and communicate with supporters and fan on a local, personalized basis. Facebook identified its target audience...

Words: 5077 - Pages: 21

Premium Essay

Marketing Study Guide

...------------------------------------------------- 1. Which of the following is NOT a step that might be used to improve the quality of a firm’s marketing intelligence? ------------------------------------------------- A. Watching how the stock market reacts to interest rate changes B. Motivating distributors to pass along important intelligence from the marketplace. C. Collecting competitive intelligence by buying a competitor’s products D. Setting up a consumer panel ------------------------------------------------- 2. When Molly’s parents retired, they decided they wanted to travel. They found an ideal job that allows them to travel for free, but the only catch is they have to stay at Holiday Inns. During each stay, they test all the amenities offered by the motel and evaluate each. The evaluation forms are sent to the motel headquarters where it becomes part of the motel’s __________ systems. ------------------------------------------------- A. Accountability information system (AIS) B. Marketing intelligence C. Experiential research data D. Marketing research ------------------------------------------------- 3. Which of the following is an example of primary data that would be used by Topps card company to determine popularity of its new hologram baseball card series? ------------------------------------------------- A. Sales records for baseball cards gathered by the industry’s trade council. B. Data from sales records kept by exclusive dealers of......

Words: 14030 - Pages: 57

Premium Essay

Marketing Study Guide

...MARK 3000 • Chapter 1 o LO 1- What is marketing? ▪ A set of activities • Using the four P’s to deliver value and benefits to a targeted group of customers (target market) ▪ A company philosophy (the marketing concept/orientation) • The objective of the company is to (1) satisfy consumer wants, and (2) meet organizational objectives. • What does the consumer want? ▪ The four P’s • Product (what are we making?) o Can be a… ▪ Physical good ▪ Service ▪ Idea • Price (how much are we charging?) o Monetary, barter, etc. • Place o Where is the product available? o How do we get the product where it needs to be? • Promotion (how is the product communicated?) o TV, internet, free samples, newspaper, etc. ▪ Exchange • Exchange is a desired outcome of marketing. • Five conditions of exchange o At least two parties o Each has something of value to the other o Each is capable of communication and delivery o Each is free to accept or reject the offer o Each feels it appropriate or desirable to deal with the other • Marketing can occur even if exchange doesn’t o LO 2- Marketing management philosophies ▪ Other orientations • Production o Focuses on the internal capabilities of the firm rather than on the desires and needs of the marketplace. o As long as it......

Words: 2916 - Pages: 12

Premium Essay

Zara Marketing Study

...American University of Science and Technology Marketing Management Project ZARA Group Members : -Fadi Nehme -Lilian Shazbeck -Ibrahim Sawma -Lama Snih -Rim El Sandid 2015-2016 Table of Content Executive summary 3 I. History and Back ground 4 II. Mission and Vision 5 III. External and Internal Assessment 7 IV. Market and Marketing Strategy 11 V. Competitors 17 VI. Finances and Prices 23 VII. Distribution and Warehousing 29 VIII. Promotion Mix 30 IX. Sales Forecasting 33 X. Action Plan 36 XI. Production 38 Reference 39 Zara Executive Summary Zara, a prominent name in the world of clothing has been successful ever since its founding in the year 1975. As the market demands began to shift towards a quick response rate and increased competition, Zara had to continuously restructure its strategy to best suit the needs of its industry. Through the careful analysis and external research; internet and multiple databases, the history of Zara revealed that Zara’s marketing strategies and market approach are outdated especially compared to the digital world we are living in. Moreover, the competition present within the industry i.e. Zara’s main competitors, were scrutinized in order to determine the plausibility of their current strategies compared to that of their competitors. Multiple internal and external investigations were......

Words: 8166 - Pages: 33

Premium Essay

Study Case Marketing

...world is more and more “online”, so it became logical that creating a website/app to help people find attractive and cheap deals to have fun would be a success! They solved a really complex problem, which is engage with local customers so it’s possible to adapt Groupon to local communities. 2) What is the Groupon promise? How does the Groupon Promise affect a consumer’s perceived risk and cognitive dissonance? According to Groupon’s founder, his company promise is: “Any costumer can return a Groupon, no questions asked - even if they used it - if they feel like Groupon has let them down.”. Giving to consumers the opportunity of “returning” a coupon even if it was used without any questions reduces post purchase anxiety or tension. Some studies shows that satisfaction affects consumers chances to repeat a purchase of determined brand. With that in mind it became possible to affirm that consumers feel secure about their purchase due to Groupon’s return policy. 3) Describe the five-stage purchase decision process for a typical Groupon user. A- Problem Recognition. Groupon shows new deals (via email/notification etc) that intend to attract consumers needs, offering an opportunity to do something that is not commonly done by the consumer. B- Information Search: A Groupon offer will usually start an “internal search,” so the consumer will reflect on previous...

Words: 581 - Pages: 3

Premium Essay

Marketing Harrah'Scase Study

...Case Analysis Report “Harrah’s Entertainment” BUSI2201U (Marketing 1) Group #12 By Raji Sandhu Mohamed Mounib Kyle Craner Javaad Khan Obaid Mohammed Mohammad Malik Word Count: 2001 Analysis-Problem/Opportunity Harrah’s Entertainment is a huge company with many brands and properties under its name including 40,000 hotels, 60,000 slot machines, 390 restaurants, 240 retail shops and 7 golf courses which received over $10,000,000,000 in revenue in the year 2009. Harrah’s entertainments mainly cares about and focuses on its customer loyalty and relationship, reason being it strongly believes that it is the sole reason behind why they are so successful. During 1998, Harrah’s obtained a new CEO, Gary Loveman. Loveman had turned the existing loyalty program into a total reward program which allowed people to receive points for using the card. 80% of Harrah’s customers use the improved Total rewards card implemented by Loveman. Harrah’s CEO and staff have always understood that the program was not aimed to get people into casinos but rather to maximize the customer experience. Harrah’s marketing information system is well developed and its core being the total rewards program it offers. This system has helped them focus on its specific customer target markets, as well as strive at making positive relationships with its current customers. Harrah’s has a great opportunity to reach out to its current customers through mail, since “they have a......

Words: 2066 - Pages: 9