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What Marketing Cannot Do

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The marketing group cannot guarantee that your product will be successful. Nor can marketing predict how many customers will buy your product, nor say with confidence how much revenue or profits will be gained. But spreadsheet models will be created that have various projections and sensitivity analysis. Marketing in today’s world is very dependent on data analytics which helps clarify the target market and product acceptance. Table 2.2 shows an example of price, margin, and volume sensitivity analysis.

Table 2.2 Price and Margin Sensitivity for Solar Power Device.

Sale Price
10% of 16.9 million Price Sensitivity TTL Revenue Margin Margin %
1,960,000 $ 50.00 $ 98,000,000.00 $ 24,500,000.00 25%
1,960,000 $ 45.00 $ 88,200,000.00 $ 19,404,000.00 22%
1,960,000 $ 40.00 $ 78,400,000.00 $ 15,680,000.00 20%
1,960,000 $ 35.00 $ 68,600,000.00 $ 11,662,000.00 17%

Table by David Tennant

Product Development

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