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When marketing meets finance: the break-even level of sales

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Break-even-analysis

In a previous blog post we investigated the Return on Marketing Investment, a metric that analyzes the marketing activity from a financial point of view that is more complex than the revenue from sales generated by marketing. The current blog post aims at exploring another area where finance meets marketing: the break-even analysis. In this area, we consider that finance actually needs marketing: the break-even analysis aims at determining from which point on (i.e. volume of sales), a business begins to generate profits.

When marketing meets finance: Return on Marketing Investment

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Return on Marketing Investment

One of the greatest challenges for marketing professionals is to “probate” the results of their activity in terms of financial numbers. To do so, a simplistic approach that might still be in use in organizations which lack an accurate performance measurement system is looking into the value of sales. Fair enough, marketing efforts should, in the end, lead to selling as much as possible. Brand building, image construction, client relationship optimization and all other marketing directions aim, in the end, at generating sales.

Measuring Knowledge Management success

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Knowledge Management

Organizations from different domains make significant investments, in terms of time and money, in Knowledge Management (KM) initiatives. The purpose of these initiatives is most of the times to facilitate and enable the capture, transfer and management of the knowledge available in the organizations.

Avatar vs. Gone With the Wind – the right Key Performance Indicators for the movie industry

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Movie industry KPIs

Over the past few weeks the majority of media outlets in the world have been writing about how Avatar surpassed the world’s highest grossing film of all time – Titanic. Cinema and motion pictures are acknowledge today as a major art form, also called the seventh art. At the same time they constitute a major business. Blockbusters can generate millions and more recently billions of dollars. One important source of revenue represents the money collected as admission to film, also called the Box Office.

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