Rafael Aleman MKTG 353-02 November 27, 2012

Margin Analysis & Channel Decisions Social Media Assignments Due December 1st Group Assignment is due on the 7th Make sure to make it unlisted so people cant find it if searched. Everyone needs to speak in the video since it will be part of your portfolio.

Make sure to apply all the activities about Social Media in your career. What do you remember? The Final Exam will be based on putting numbers together to make decisions on marketing strategies on pricing and channel decisions. Yes or No, should you raise price or change marketing campaign. You will need this information for your capstone 489 Use and keep it in your treasure bag. You will struggle if you do not understand where we are heading. Mark up policy (margin policy will carry if they can make a percentage profit) Manufacturers Retailers Purchasing Agents Buyer/ Purchase Negotiation Retail Price/ List Price On Final 1. What is the markup percent on retail that Footlocker will achieve on the Nike athletic shoes? 2. What is the markup percent on cost for the same item? 3. How much can Footlocker afford to pay for a pair of basketball shoes that will retail at $120 and carry a 35% markup on retail? 4. Footlocker purchases a line of cross-training shoes from a manufacturer for $42 a pair. The manager plans to run a special promotion on the item with a 37.5% markup on retail. What retail price should be placed on a pair of cross-training shoes?

Manufacturer Wholesaler

Brand

Cost of production

 Retailer Consumers

Target MSRP

We have to work out the price at the intermediate level in our channel of distribution, not just the consumer price. The formulas on page 2 will be discussed.
Formula: Margin % on Price = (Price-Cost)/Price *100% Margin % on Cost = (Price-Cost)/Cost *100% Manufacturer Price = Cost * (1 + Margin % on Cost) Retail Price = Cost / (1 - Margin % on Price)

Make sure you always take initiative since it will make you stand out in front of your peers. You usually do not have much leeway when setting up your market price, it is subjective to competitoni. If you price high you lose customers, if you price too low you will not make profits or cover your marginal costs. Margin Markup Markon Unit Contribution Gross Profit Gross Margin Price = Cost X / ( 1 MP%) Cost = Price * ( 1 MP% ) Family businesses make money but they are not making profit because they are not applying the correct pricing policy. Excel files - You have to practice several times since it will be on your final

Assignment 2 What has changed is the strategy