# Marketing Numerical Quiz 1 ADMS 2200

**Topics:**Generally Accepted Accounting Principles, Marketing, Revenue

**Pages:**4 (838 words)

**Published:**March 15, 2014

January 29th, 2013

Review for Numerical Quiz 1

Formulas:

1. Percentage Change:

•Change = (New Value - Old Value) / (Old Value)

•Example: Sales grew from $30 billion to $31 billion.

•($31 - $30) / $30 = 3.3% Change

2. New Value:

•New Value = (Old Value) X (1+Percentage Change / 100)

•Example: Sales in 2012 were $320,000. Expecting sales to grow 18% •($320,000) X (1.18) = $377, 600

3. Old Value:

•Old Value = (New Value) / (1+Percentage Change / 100)

•Example: 2013 market size forecasted to be $30 million representing 11% growth compared o 2012. To calculate 2012 market size...

•($30 million) / 1.11 = $27.03 million

4. New Profit Margin:

•New Profit Margin = (Old Profit Margin) X (1+Growth/100)

•Example: AlPizza last year profit margin was 20%. Gross profit margin grew 5% •(20%) X (1.05) = 21%

•If statement says grew 5 percentage points = 20% + 5% = 25% 5. Market Share:

•Market Share = (Own Sales) / (Total Market Sales)

•Example: 2006 global sales of supercars was $3 billion. Lamborghini’s sales were $400 million, calculate Lamborghini’s market share.

•($0.4 billion) / ($3 billion) = 13.3%

•Is the exact same formula if question asks for a unit figure. 6. Relative Market Share:

•RMS = (Own Market Share) / (Leading Competitor’s Market Share) •Example: Lamborghini’s market share in the supercar market was 13.3% in 2006, Ferrari’s market share was 63% What is the relative market share for Ferrari compared to Lamborghini.

•(63%) / (13.3%) = 4.74 If RMS is above 1 means market leader, below 1; firm is lagging 7. Market Size:

•Market Size = (Firm’s Sales) / (Market Share in % / 100) •Example: AlPizza in 2012 held 1.18% of market share while PizzaDon’s share was 2.3%. Al knows his sales in 2012 were $320,000, he needs to calculate Don’s $ sales. First he needs to calculate 2012 market size.

•(320,000) / (0.0118) = $27.1 million

•Now he can calculate Don’s dollar sales based on Don’s market share 8. Sales:

•Sales =...

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