Product details

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Supplementary software
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Reference no. 9-510-713
Subject category: Marketing
Published by: Harvard Business Publishing
Published in: 2010
Format: .xls
Data source: Published sources

Abstract

This software is to accompany the case. Marketing managers are often called upon to make recommendations for or against programs that cost money to implement. Before expenditures are made, managers want to be sure that they will be getting a return on their investment. One way of assessing this is by calculating the break-even point. In this note, we introduce the concept of break-even analysis and show how it is used to guide marketing decision making. This analysis helps students assess the feasibility of proposed fixed and variable marketing expenditures, the feasibility of permanent pricing changes, and the feasibility of a new product introduction. The note gives students a foundation for analyzing marketing cases, as well as providing an analytical structure and process for completing a marketing plan. The note is accompanied by a free Excel worksheet which contains sample problems, pre-built Excel models to calculate break-even, and charts and graphs which help visualize the results.

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Abstract

This software is to accompany the case. Marketing managers are often called upon to make recommendations for or against programs that cost money to implement. Before expenditures are made, managers want to be sure that they will be getting a return on their investment. One way of assessing this is by calculating the break-even point. In this note, we introduce the concept of break-even analysis and show how it is used to guide marketing decision making. This analysis helps students assess the feasibility of proposed fixed and variable marketing expenditures, the feasibility of permanent pricing changes, and the feasibility of a new product introduction. The note gives students a foundation for analyzing marketing cases, as well as providing an analytical structure and process for completing a marketing plan. The note is accompanied by a free Excel worksheet which contains sample problems, pre-built Excel models to calculate break-even, and charts and graphs which help visualize the results.

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