Marketing Analysis Chapter 9

Marketing segments are typically defined on the basis of:

1. Elements of the product-service offering 2. Sales divisions, districts, or territories 3. Marketing channels 4. Type or size of customers

Two types of costs that must be identified and traced to different marketing channels:

1. Order-getting costs 2. Order-servicing costs

Operations Control

Assesses how well the organization performs marketing activities as it seeks to achieve planned outcomes

Strategic Control

Assesses the direction of the organization as evidenced by its implicit or explicit goals, objectives, strategies, and capacity to perform in the context of changing environments and competitive actions.

Strategic Change

Change in the environment that will affect the long-run well-being of the organization

Technological innovation

Creates strategic change as newer technologies replace older technologies

What is included in order-servicing costs?

Packing and delivery costs, rehousing expenses, and billing costs

Contribution-margin approach

Relevant costs charged against an offering include direct costs and assignable overhead

Market evolution

Results from changes in primary demand for a product class

Market redefinition

Results from changes in the offering demanded by buyers or promoted by competitors

What is included in order-getting costs?

Sales expenses and advertising allowances

What is the purpose of marketing-cost analysis?

To trace, assign, or allocate costs to a specified marketing activity or entity in a manner that accurately displays the financial contribution of activities or entities to the organization.