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 Eight: Strategy: Breakeven and Profitability
Strategy: Breakeven and Profitability
Profit Is Why We're Here
To say that we're here to make a profit may seem obvious, but there are still those people who believe that profits are somehow inherently evil. They are not. Profit and, more important, the hope of profit, make up the engine that is the greatest motivator ever known. Any profit we earn comes because we have satisfied enough customers to earn it. Review with me for a moment two of the definitions from Chapter 1:
Profit: The amount by which our customers believe our products to be worth more than the resources we expended on those products.
Loss: The amount by which present and potential customers believe our products to be worth less than the resources ...