MKT 310 Lecture Notes - Lecture 10: Cash Flow, Gross Margin, Dynamic Pricing
Document Summary
Therefore, marketers use a combination of tools like cost benefit analysis, payback analysis, and break-even analysis to assess the attractiveness of a marketing initiative. For marketers make a decision to implement the marketing program an analysis of the cost of the program versus the expected benefits must be examined. Guides the marker in the overall evaluation. Used to determine the (1) merit of a single marketing initiative or to (2) compare multiple alternatives to each other to identify the strongest. The tangible net measurable dollars that result from an initiative like a marketing program. Typically it would include: (1) the increase in gross margin that results from a campaign (2) or the labour savings that might result from automation. The recognition that currency will lose value over time because of inflation. Example: invested today at 2% will be worth therefore over time, the value of money changes.
