# Marketing Mathematics, seg. sizing, data collection- Sweden

### Marketing Mathematics

The basic marketing math that is needed to help make marketing decisions are below. These are critical to understand when performing case analysis.

They include:

• Break Even Analysis
• Lifetime Value of the Customer
• Market Segment Sizing

### Market Segment Sizing

Estimate the number of customers by starting with the most general population, and then reducing according to the characteristics of the actual segment being sought.
Segment value = Number of Customers x Value per Customer
Number of Customers = Population x Segment Size (%) x Segment Penetration (%)
Customer Value = Customer Usage Rate x Unit Price (\$) x Unit Contribution (%)

Improving Decision Making With Simple Break-Even Analysis
Attacking Business Decision Problems With Break-even Analysis
Formula for Incremental Break-Even Analysis
The Lifetime Value of a Customer

**Discussion Topic: Any issues with respect to the above marketing mathematics?

### Marketing Information Collection

Marketing Information System:

1. Internal records
2. marketing intelligence system
3. marketing research
1. defining problem and research objectives
2. developing the research plan
3. collecting information
4. analyzing information
5. presenting findings
4. marketing decision support system

**Discussion Topic: Assess the impact of the web on the area of data gathering.

Primary research: Data gathering.
Example surveys:
Stanford Web-site Survey
Wharton Matric Survey

**Discussion Topic: After reviewing the Wharton and Stanford surveys, discuss the goals of the surveys, in terms of what each school is trying to learn. Comment on the effectiveness of each survey.

Note: Zoomerang is a great resource for designing online surveys.

Balance between data gathering and the need for privacy.
Junkbusters.com: A great site to explore your privacy rights/issues.

Some useful secondary resource sites on the web: