Price Calculation – Breakeven Pricing

Often a firm will calculate the break-even point for a price. That is, if we set the price at $X, then how many units will we need to sell to cover costs (that is, our break-even point). Work through the following two examples to gain a better understanding of this approach.

 

ACTIVITY/TASK

Using break-even analysis:

  1. How many units need
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Price Calculation – Cost-plus Pricing

Cost-plus pricing is a very simple form of pricing. This approach was once fairly common, but is less widespread today. Your task for this activity is to work through the following two examples to gain a better understanding of this approach.

 

ACTIVITY/TASK

Using cost-plus pricing to:

  1. Set the price if you expect to sell 1,000 units and you want a
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Developing a CRM Strategy

Using a CRM strategy is probably one of the best solutions for the problem in the following case study. Your task in this activity is to develop a strategy to increase attendance for this organization’s main event.

Please note that there is an updated version of this activity now available, which also includes an interactive spreadsheet.

ACTIVITY/TASK

You’ve been called … See the full activity...

Impact of Reduced Staff Empowerment

CRM success is highly reliant upon the motivation and performance of a firm’s customer contact staff. Considering this point, review the situation below – do you think that the management has made the right decision?

 

ACTIVITY/TASK

Assume that you have just started working at a supermarket, in their marketing department. the supermarket’s management team has just introduced a ‘… See the full activity...

Working with Customer Lifetime Value

In this activity, you need to work through a customer lifetime value exercise (CLV). You need to calculate the customer lifetime value for both the accounting firm’s business and individual customers. Given these calculations, what advice would you have for the firm?

 

ACTIVITY/TASK

An accounting firm currently provides accounting and taxation advice to 1,000 businesses and 2,000 individuals. In … See the full activity...

Calculating Customer Lifetime Value


In this exercise, your task is to calculate the customer lifetime value (CLV) for two retailers (there is one example already being provided to assist you). In the activity, we will also consider the impact of the number of years (that is, the customer’s lifetime) in the calculation.

 

ACTIVITY/TASK

In the following tables, the formula to calculate customer lifetime … See the full activity...

Will Profit per Customer increase each year?

Do customers become more valuable over time? In this exercise, you consider whether a customer is likely to increase his/her relationship with a firm over time, by evaluating likelihood of them progressing through a relationship life-cycle path.


ACTIVITY/TASK

Let’s consider the possible relationship life-cycle path of an average customer of a phone company, which also markets a range of home … See the full activity...

What’s Our Market Share?

In this exercise, you simply need to work out the firm’s unit market share. You have provided with lots of numbers to help you. As we know, your (unit) market share is derived by the formula of: our sales/total market sales. It should be a simple exercise, shouldn’t it?

 

ACTIVITY/TASK

Last week our chain for food stores sold 100,000 pizzas … See the full activity...

From Research to Strategy

In this mini case study, the firm is discussing the results of some of their market research and considering what they should do next. Your task is to help them decide. So given the research results given and the other information in the case, what advice would you give them?

 

ACTIVITY/TASK

Clive, the owner of the Little Italy … See the full activity...

Using Market Research Results

The following case study provides information for a hotel chain. They have recently conducted a customer satisfaction survey. Given these research results and the other information in the case, what advice would you give them? This is a good exercise in utilizing the results of market research.

 

ACTIVITY/TASK

The Quick-Stop Hotel Chain

Quick-Stop Hotels is a small … See the full activity...

Analyzing Campaign Results

A key aspect of a marketing role, especially early in a career, is analyzing campaign results. In this particular exercise, you are presented with the campaign results from a bank that has tested different promotional tactics. Your task here is to analyze which aspects of the campaign test have been effective.

ACTIVITY/TASK

In this direct marketing campaign, a bank has … See the full activity...

Using Cross-Tabs

This activity is designed to highlight the value of using cross-tabs to help analyze market research data.

In this exercise, you will start with the top-level results and then ‘drill down’ in the data through the use of cross-tabs. Hopefully you will find that, as you drill down, that more valuable information is uncovered.

Start by reviewing the hypothetical market See the full activity...

Reviewing a Multi-Attribute Model

In this exercise, your task is to review the results of a multi-attribute attitude model, which compares consumer’s perceptions of two fast food restaurants (McDonald’s and Burger King).

In the survey (which uses hypothetical data), consumers have been asked to rank the importance of various attributes and then score the two firms for these attributes. The two responses are then … See the full activity...

Interpreting Research Results

This review activity summarizes the results of research into a potential new product – hot chili flavored ice cream. The firm undertook taste-test research to help determine whether they should launch this new product, or whether their product prototype needs to be modified before launch. Given the research results listed below, what would you recommend to the firm?

 

ACTIVITY/TASK

Research See the full activity...

Which Research Design to Use?

In this activity you simply need to go through the various information challenges facing Pizza Hut and identify the most suitable market research or market information approach they should use to help gather information. You are supplied a list of possible research approach to choose from.

 

ACTIVITY/TASK

  What research approach should be used if Pizza Hut wanted to know…
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Change in Retailer Relationships

In this exercise, you need to evaluate how well this manufacturer is progressing with their retailer relationships (in its micro-environment). As you can see, they have increased sales to retailers by $2m and they have also increased the number of retailing chains that they deal with. These results are obviously pleasing, but are there any areas of concern and what See the full activity...

What’s the Best Marketing Strategy?

In this short case study, a hypothetical manufacturer of pasta and related products is faced with a choice of four different marketing strategies. Your task in this exercise is to determine which strategic path is the best for them. All four strategic options have a supportive rationale, so which one will you choose?

 

ACTIVITY/TASK

Clive, the owner of the … See the full activity...

Improving the Marketing Mix

In this exercise, you are required to review the top-level financials of a small chain of hamburger stores and suggest improvements to their marketing mix. This activity should provide an introduction of how modifications to a firm’s marketing mix can impact business performance.

So let’s help Fat Frank’s Burgers make more money!

 

ACTIVITY/TASK

Frank owns three hamburger shops (Fat … See the full activity...