• Market Segment Sizing
  • Marketing Strategy: Key Concepts 4




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    Marketing Strategy: Key Concepts 4

    Marketing Mathematics


    The basic marketing math that is needed to help make marketing decisions are below. These are critical to understand when performing case analysis.

    They include:


    Market Segment Sizing


    Estimate the number of customers by starting with the most general population, and then reducing according to the characteristics of the actual segment being sought.
    Segment value = Number of Customers x Value per Customer
    Number of Customers = Population x Segment Size (%) x Segment Penetration (%)
    Customer Value = Customer Usage Rate x Unit Price ($) x Unit Contribution (%)

    Improving Decision Making With Simple Break-Even Analysis
    Attacking Business Decision Problems With Break-even Analysis
    Formula for Incremental Break-Even Analysis
    Lifetime Value in Relationship Marketing
    Determining Customer Lifetime Value for your Internet Marketing Plan
    The Lifetime Value of a Customer

    **Discussion Topic: Any issues with respect to the above marketing mathematics?




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