In the last article we saw how to use Competition/Partnerships/Distribution. In this article we will explore Pricing, Positioning and Business Model. 4. Pricing Price is the most important tool of the Marketing Mix and the one which generates revenue. Pricing has a tremendous impact on the business model and it is important that it is […]

When I sit down with the small business owners and evaluate their business plans, the marketing plans are based on cookie cutter approach. Their focus is heavy on profits but light on “strategic marketing leading to business model”.  Here is my attempt to explain why there is a need to understand and apply strategic marketing […]

Innovate or else become extinct  The modern era is an exciting period as respected companies bite the dust and new names become household terms. It is a time of Darwin’s survival of the fittest. It is a time for innovation to take centre stage.  Category Life Cycle   Every product or service category goes through […]

A flow diagram on how we arrived at product cost using ABC:

Step-7: Calculate rate per unit of cost driver   The rate per unit of cost driver can be calculated using the following formula: Cost of Activities (step 5)/ Volume of activities (Step 6)     Using the above formula the rate per unit of cost driver for each of the identified operating activities is given […]