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Touché Toiletries, Inc., has developed an addition to its Lizardman Cologne line tentatively branded Ode d'Toade Cologne. Unit variable costs are 45 cents for a 3-ounce bottle, and heavy advertising expenditures in the first year would result in total fixed costs of $900,000. Ode d'Toade Cologne is priced at $7.50 for a 3- ounce bottle. How many bottles of Ode d'Toade must be sold to break even? Suppose that marketing executives for Touché Toiletries reduced the price to $6.50 for a 3-ounce bottle of Ode d'Toade and the fixed costs were $1,100,000. Suppose further that the unit variable cost remained at 45 cents for a 3-ounce bottle. (a) How many bottles must be sold to break even? (b) What dollar profit level would Ode d'Toade achieve if 200,000 bottles were sold?

Touché Toiletries, Inc., has developed an addition to its Lizardman Cologne line tentatively branded Ode d'Toade Cologne. Unit variable costs are 45 cents for a 3-ounce bottle, and heavy advertising expenditures in the first year would result in total fixed costs of $900,000. Ode d'Toade Cologne is priced at $7.50 for a 3- ounce bottle. How many bottles of Ode d'Toade must be sold to break even? Suppose that marketing executives for Touché Toiletries reduced the price to $6.50 for a 3-ounce bottle of Ode d'Toade and the fixed costs were $1,100,000. Suppose further that the unit variable cost remained at 45 cents for a 3-ounce bottle. (a) How many bottles must be sold to break even? (b) What dollar profit level would Ode d'Toade achieve if 200,000 bottles were sold?

Principles Of Marketing
Principles Of Marketing
17th Edition
ISBN:9780134492513
Author:Kotler, Philip, Armstrong, Gary (gary M.)
Publisher:Kotler, Philip, Armstrong, Gary (gary M.)
Chapter1: Marketing: Creating Customer Value And Engagement
Section: Chapter Questions
Problem 1.1DQ
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Learning Activity - Marketing 2150 Spring 2020 Chapter 14- Customer Relationship Management Google, Datamining, and You. In this learning activity, we will develop skills related to defining data mining and customer lifetime value, and explaining why each is important. Database marketing (using data mines) is a process of analyzing customer patterns and insights to make better marketing decisions. Data mining can spot trends and other nuggets of information that the company may not have been aware of. To get a good example of how a company can increase the customer lifetime value of an individual using data collected in a database, try searching out just what Google knows about you! Follow the steps outlined below to access the data mine that Google has developed about you. Using that information, reply to the questions that follow. Accessing Your Google Data Mine. Go to your Google Account. On the left navigation panel, click Data & personalization. Scroll to the Things you can create and do panel. Click Go to Google Dashboard. ● . . ● ● ● ● ● You'll see Google services you use and a summary of your data. Go back to the Data & personalization page and find the Ad Personalization panel. Select "go to ad settings" Take a look at how your ads are personalized: this is how you have been placed into a target market segment. Questions 1. What did Google get right about the target market segment you belong to? 2. What did Google get wrong about the target market segment you belong to? 3. How has your online experience with brands or with online purchases been impacted by the filters put in place by Google?
Transcribed Image Text:Learning Activity - Marketing 2150 Spring 2020 Chapter 14- Customer Relationship Management Google, Datamining, and You. In this learning activity, we will develop skills related to defining data mining and customer lifetime value, and explaining why each is important. Database marketing (using data mines) is a process of analyzing customer patterns and insights to make better marketing decisions. Data mining can spot trends and other nuggets of information that the company may not have been aware of. To get a good example of how a company can increase the customer lifetime value of an individual using data collected in a database, try searching out just what Google knows about you! Follow the steps outlined below to access the data mine that Google has developed about you. Using that information, reply to the questions that follow. Accessing Your Google Data Mine. Go to your Google Account. On the left navigation panel, click Data & personalization. Scroll to the Things you can create and do panel. Click Go to Google Dashboard. ● . . ● ● ● ● ● You'll see Google services you use and a summary of your data. Go back to the Data & personalization page and find the Ad Personalization panel. Select "go to ad settings" Take a look at how your ads are personalized: this is how you have been placed into a target market segment. Questions 1. What did Google get right about the target market segment you belong to? 2. What did Google get wrong about the target market segment you belong to? 3. How has your online experience with brands or with online purchases been impacted by the filters put in place by Google?
Learning Activity - Marketing 2150 Spring 2020 Chapter 9 - Pricing Breaking Even with Touché Toiletries In this learning activity, we will develop skills related to discussing the value of break-even analysis and conducting break-even calculations. Break-even analysis is a technique that analyzes the relationship between total revenue and total cost to determine profitability at various levels of output. The break-even point (BEP) is the quantity at which total revenue and total cost are equal. Profit comes from any units sold beyond the BEP. The break-even point (BEP) is calculated as follows: BEP = FC/(P-UVC) BEP = Fixed Cost Unit Price - Unit Variable Cost Using the Break Even Point Formula listed above, complete a break even analysis for the following scenario: Touché Toiletries, Inc., has developed an addition to its Lizardman Cologne line tentatively branded Ode d'Toade Cologne. Unit variable costs are 45 cents for a 3-ounce bottle, and heavy advertising expenditures in the first year would result in total fixed costs of $900,000. Ode d'Toade Cologne is priced at $7.50 for a 3- ounce bottle. How many bottles of Ode d'Toade must be sold to break even? Suppose that marketing executives for Touché Toiletries reduced the price to $6.50 for a 3-ounce bottle of Ode d'Toade and the fixed costs were $1,100,000. Suppose further that the unit variable cost remained at 45 cents for a 3-ounce bottle. (a) How many bottles must be sold to break even? (b) What dollar profit level would Ode d'Toade achieve if 200,000 bottles were sold?
Transcribed Image Text:Learning Activity - Marketing 2150 Spring 2020 Chapter 9 - Pricing Breaking Even with Touché Toiletries In this learning activity, we will develop skills related to discussing the value of break-even analysis and conducting break-even calculations. Break-even analysis is a technique that analyzes the relationship between total revenue and total cost to determine profitability at various levels of output. The break-even point (BEP) is the quantity at which total revenue and total cost are equal. Profit comes from any units sold beyond the BEP. The break-even point (BEP) is calculated as follows: BEP = FC/(P-UVC) BEP = Fixed Cost Unit Price - Unit Variable Cost Using the Break Even Point Formula listed above, complete a break even analysis for the following scenario: Touché Toiletries, Inc., has developed an addition to its Lizardman Cologne line tentatively branded Ode d'Toade Cologne. Unit variable costs are 45 cents for a 3-ounce bottle, and heavy advertising expenditures in the first year would result in total fixed costs of $900,000. Ode d'Toade Cologne is priced at $7.50 for a 3- ounce bottle. How many bottles of Ode d'Toade must be sold to break even? Suppose that marketing executives for Touché Toiletries reduced the price to $6.50 for a 3-ounce bottle of Ode d'Toade and the fixed costs were $1,100,000. Suppose further that the unit variable cost remained at 45 cents for a 3-ounce bottle. (a) How many bottles must be sold to break even? (b) What dollar profit level would Ode d'Toade achieve if 200,000 bottles were sold?
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