The key goal of Survival Math for Marketers is a solution to a common problem in business - namely, the lack of mathematics know-how among many business students and practitioners. There is an untapped ‘latent demand’ in the marketing world from many people whose careers have been - or will be - thwarted because the math ‘haves’ dominate the ‘have nots’. This book as an easy, fun, and inexpensive solution to this age-old problem.
Survival Math for Marketers is designed to be a useful book for introductory marketing courses. It is clearly written, filled with good examples, illustrations and makes entertaining reading.
Chapter Seven: Costs and Profitability
Costs and Profitability
Costs, Real and Imagined
It may sound silly that to succeed as a marketer you must understand costs. But, you might think, isn't that for the Production and Finance people? Multiply the cost per widget by the number of widgets involved and you arrive at a total cost. Marketing people focus on customers and prices, not costs.
Marketing people also have to understand costs, and, more important, they have to understand how people think about costs. This is especially important, because not everything that people think about costs is true. For example, we just talked about widgets, cost per widget, and total cost. But the calculation that is done more often is the reverse of what I described above: We start with ...