marketing analyses

Common Marketing Analyses

At bloomfield knoble, we have to handle and interpret a lot of data. This data may come from our own marketing research, from the client or from third-party sources. Whatever the origin of a particular data set, it’s not very useful in its raw form, which is why analysis is so important. By using analytical tools, bloomfield knoble can find meaning in the data so it can be used effectively in a decision-making process.

There are many different methods for marketing analyses – some are more common than others. At bloomfield knoble, we don’t subscribe to only one particular analyses – we use what works best for a particular need.

Break Even Analysis

Break-even analysis determines the sales result needed to insure that the action under consideration does not lose money. It is the most commonly used quantitative concept for making specific marketing decisions.

Incremental Break Even Volume

Related to Break-even analysis, Incremental Break-even Volume is calculated as the fixed costs of the marketing action divided by the unit contribution. This is commonly used to determine whether an action will generate sufficient sales to cover its cost.

Cannibalization

Cannibalization refers to the loss of sales of one product due to an increase in sales of another product in the line – generally when a marketing action for one product may result in sales of that product instead of sales of other products in the line.

Lifetime Value of a Customer

Lifetime value of a customer estimates the present value of a customer who will generate a stream of revenue and costs over a relatively long period of time. The underlying assumption of this analysis is that customers often make multiple interrelated purchases and generate costs that are not specifically related to any specific transaction. This analysis puts a dollar value on customer loyalty.

Margin Analysis

Margin analysis examines the difference between the purchase price of a product and the resale price of that product (the product’s margin) and determines how large the margin must be in order for the product to be profitable. A margin analysis tracks prices, variable costs and profit margins through the value chain for every product within the firm’s product line and across competitors.

Economic Value to the Customer

Economic value to the customer is a number that quantifies a product’s value to the customer. This analysis looks at the value compared to a benchmark competitor before deducting the purchase price.

In addition to these common analyses, bloomfield knoble also often turns to financial analyses such as time value of money, return on investment, net present value and discounted cash flow.

One of the benefits to conducting an analysis is helping to decide if it makes sense to conduct a campaign. There have been times when bloomfield knoble has advised against action because the analysis couldn’t justify the client’s expenditure. This transparency is one of the many factors that help bloomfield knoble build relationships with clients.

Quite simply, relationships are everything to bloomfield knoble.

 


 About The Author

thomas-thompson-headshot

A STEM (Science / Technology / Engineering / Math) graduate and COO of bloomfield knoble, Thomas exemplifies the view that advertising is becoming an engineering discipline. He leads the integrated insights and strategic planning group in a way consistent with bloomfield knoble’s goal of bringing a strong analytical foundation to uncover fresh and innovative insights and business opportunities.
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Who is bloomfield knoble?

bloomfield knoble is a full-service, premier strategic marketing and advertising agency based in Dallas, Texas. Our clients include top 50 Fortune companies and unique businesses that seek a strategic partner to empower their offerings and growth. Whether developing an integrated advertising campaign, a direct marketing tactical approach, brand framework and positioning exercise, or daily creative, technical and consulting support, bloomfield knoble provides a one-to-one approach. Call Eric Hirschhorn to learn more at 214-254-3805, or eric@bloomweb.com.

 

 

 

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