Marketing is concerned with pricing and promoting your products. The department is also responsible for sales forecasts.

Pricing Products

Price was discussed in “Price In The Fine Cut.” To review, appeal falls to zero when prices go $5.00 above or below the expected price range. Price drives the product’s contribution to profit margin. Dropping the price increases appeal but reduces profit per unit. Segment price ranges fall at a rate of $0.50 per year. For example, in Round 0 Traditional customers expected a price between $20.00 and $30.00. In Round 1, the Traditional price range will be $19.50-$29.50; Round 2, $19.00-$29.00, etc. This puts pressure on companies to improve their cost structures.

Promo And Sales Budgets

Promotion and Sales Budgets affect product appeal. See “Marketing Factors” in "The Purchase Decision" for more information.

Tip: The Courier’s Segment Analyses report Accessibility and Awareness.