We are already thirteen weeks through the semester... Two more weeks plus finals week- it's crunch time in the semester...
This week's classes really served as the glue to tie up any loose ends we have had, especially Thursday's class. But before we delve into that, let's focus on Tuesday's class. This class focused specifically on "break-even analysis." This interesting concept that helps show the operating performance of a company was not entirely new to me. This is because we have discussed break-even points in my microeconomics class. However, what this class did teach me was the concept of a break-even analysis solely based from a company's proprietary perspective. I learned the formula the that accompanies the concept of break-even analysis:
Company Break-Even (Units): = Total Fixed Costs/ (SP per unit - variable cost per unit).
This formula enables the company to find the "point" at which the company generates enough revenue to cover its entire fixed and variable costs. It is at this point where the company will earn a profit of exactly $0. Therefore, by calculating this number, through break-even analysis, a company can use this to gauge how many units are needed to be sold. This is the bare minimum number, however, so this value serves as a "worst case" scenario hopefully for a marketing manager; if the company makes negative profit, the marketing manager has failed and will potentially lose his or her job.
Whereas Tuesday's class focused on cut-and-dry, methodical number crunching, Thursday's class served as a reflection day which focused on the softer side of marketing. We were able to ask any questions about the simulation and about marketing in general, which I took full advantage of. I was curious to know about the role of marketing managers, especially in the context of everyday operations in large organizations. What I learned is that brand managers are more prominent in this area as compared to marketing managers. In smaller companies and organizations, it is more common for marketing managers to tackle and oversee the entire marketing plan/strategy because the breadth of their company doesn't involve such an overwhelming amount of "big data." In addition, I was interested in learning how we should approach the marketing simulation to successfully manage the company. I learned that the four P's of marketing should be focused on, and establishing the product ranks highest on the list for potential success. As a result of the product, I can establish a price and promotion strategy which coincides with a tailored approach based on how I want the product to enter the market. Where the product is in the product life cycle (introduction, growth, maturity, decline) also plays a major role in procuring a marketing mix that will benefit the product's popularity and increase the company's profit margin.
Also of note, I know I have promised to keep you all updated on our collaboration with the honors engineers. At this point, they are getting ready to pitch our Smart Windshield product and I know they will desperately need our feedback for presentation/pitch skills. Not to say that do not have the adequate skills to present, I am just saying that we need to touch base with them to make sure they touch the general, most important concepts our product has to offer. We will be meeting with them soon, so I'll keep you updated on the latest happenings and developments on the situation...
Have a fantastic week and enjoy the warmer weather- spring is here!
-Chris
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