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The definition of marketing mix can best be described as the combination of elements used to promote products or services. These variable elements are based upon the analysis of the “four P’s” of marketing: product, price, place, and promotion. Specific marketing tactics are then formed from the intersection of these four factors.
Marketing relates to the pricing, placement and promotion of specific products, but macromarketing describes how marketing influences what a whole society produces and sells. Macromarketing describes how marketing affects an entire society's demand for goods and services.
Profit margin usually refers to the percentage of revenue remaining after all costs, depreciation, interest, taxes, and other expenses have been deducted. The formula is: (Total Sales - Total Expenses)/Total Sales = Profit Margin. Note that preferred stock dividends are typically included in the calculation, but common stock dividends are not.
Although there is no mathematical threshold that definitively determines whether an industry is capital intensive, most analysts look to a company’s capital expenses in relation to its labor expense. The higher the ratio between capital and labor expenses, the more capital intensive a business is. For example, if Company XYZ spent $10,000,000 ...
The existence of gray markets signals strong demand for a good, service or security. In the business world, products are sometimes less expensive in the gray market, though they also may be counterfeit, cheaply made, or infringing on a trademark. In the investing world, a gray market exists when people begin trading shares that have not been ...
Some fixed costs increase after a certain level of revenue is reached. For example, if Restaurant ABC begins selling 5,000 pizzas per month – rather than 2,000 – it might need to hire a second manager, thus increasing labor costs. Break-Even Analysis Benefits . Break-even analysis is a great way to determine a business’ profitability.
Break-Even Point Definition. In accounting, economics, and business, the break-even point is the point at which cost equals revenue (indicating that there is neither profit nor loss). At this point in time, all expenses have been accounted for, so the product, investment, or business begins to generate profit. The concept of “breaking even ...
The company belongs to its owners, and the CFO must guard their financial interest in the company. This includes managing the company's overall capital structure by keeping capital costs low, balancing the mix of debt and equity and making sure the company's credit rating is as high as possible. 3. Oversee the Accounting and Tax Processes. The ...
Example of a Tariff. As an example of a tariff: A company importing 10,000 printed circuit assemblies from China would declare their items under HTS 8529.90.09. CBP officers would charge the importer a tariff per item imported. Example of a Duty. An American brings back $200 of goods from a weekend in Canada, including two liters of liquor.
Return on Assets Formula Example . Say that a company has $10,000 in total assets and generates $2,000 in net income. It’s ROA would be $2,000 / $10,000 = 0.2 or 20%. What Does Return on Assets Tell You? A good ROA indicates that a business is doing well in managing its assets.