Marketing can't ignore marginal benefits
When companies develop marketing plans, the first thing to consider is how to convert the company's limited resources into larger outputs. To achieve this, it is inseparable from the marginal benefit analysis. The so-called marginal benefit is the benefit created by the added cost. From the perspective of economics, in order to achieve greater investment returns, it is necessary to make every penny of investment create better benefits. The reason is very simple. If there is a better return on investment in some aspect, we don't have to spend the money in the current place. The benefit that can be lost by the abandoned choice is the opportunity cost. Therefore, the critical point for achieving better benefits is that the added cost and the increased benefit are equal. Of course, the cost here includes opportunity costs. In other words, it is a better choice only if there is no better choice. For example, the sales volume of a certain drug in a certain place is 3 million boxes, and the total cost of sales is 1 million yuan. If the sales volume increases to 3.01 million boxes, the cost of sales will increase to 1.08 million yuan, and the newly added 0.8 million yuan will create 1 The sales of 10,000 boxes, assuming that the gross profit per box is 1 yuan, the new profit is 0.2 million yuan, which is a positive number, it seems that it can continue to increase investment. But if we invest this 0.8 million yuan in other places to create 20,000 yuan in income, the former investment method is not good; only when we invest this 0.8 million yuan anywhere can only create When the same or even smaller benefits are made, the correct choice can be made. There are many marketing methods, including various TV commercials, newspaper advertisements, outdoor advertisements, postal advertisements, gifts, rebates, personnel promotions, telephone promotions, discounts, academic lectures, and experience activities. Marketing also has different markets, such as hospitals, pharmacies, supermarkets, third terminals, A, and B. Suppose we keep the other aspects of the existing marketing campaigns exactly the same, and only change one of the projects, such as the investment advertisements previously published in medical journals, to the "Medical Economics", you may find that, relative to cost At the beginning, a small amount of advertising was not effective at all. As the amount of advertising increased, the effect gradually appeared, and after a certain degree, it began to decline sharply. That is to say, under the premise of other aspects, the marginal benefit and cost of this advertisement are not proportional to each other, but a curve. In theory, there is a better point. Just as students improve their grades, the effort to increase from 60 to 80 and from 95 to 100 will not be the same. By analogy, under the premise of market environment, output (target) and various factors, all elements of marketing should have a better marginal benefit and cost. Therefore, in order to achieve better marketing results, companies should use different marketing methods in combination, just as students should achieve a good academic performance, they should be balanced in their own time. At present, there are many companies that emphasize the "two-eighth law" when they engage in marketing. If you analyze the marginal benefit, you will probably find that these are just a vague estimate and not scientific. The marginal benefit analysis also tells us that when market factors change, companies should choose cheaper factors. For example, if the advertising price of a professional newspaper is lowered, we can choose the newspaper to advertise more. Of course, the premise is that the advertising effect of the newspaper has not changed. Therefore, marketing requires us to explore as much as possible the marketing methods and markets that are not noticed. The marginal benefit analysis also tells us to forget the past and focus on the future. If the old man remembers the milk poured on the ground, it will interfere with your development of the future. Although you have spent a lot of energy and money in a hospital in the past, if you continue to invest only to maintain a duty relationship, it is better to take a different approach and immediately let go of your choice. Necklace and Earrings, Fashion Zircon Jewelry Sets, Zircon Jewelry Sets Fenghua Jade Motor Co., Ltd. , http://www.ring-manufacturer.com