EXAM QUESTION Coursework Example | Topics and Well Written Essays - 500 words

EXAM QUESTION - Coursework Example The expected cash outflows depend on the bulge of various cost elements, working capital and venture requirement. Particularly the inaccuracy of subjective forecasts and manager tendency to overestimate or underestimate the value of particular actions and its proving useful for evaluating alternatives marketing strategies (Bunn, 2009). It has three components namely value, brand and relationship equity. Value equity refers to customers’ company product assessment based on the offer, price and convenience. McDonalds is an example of a fast food company with a fair pricing policy, and this has raised customer equity and thus had a competition advantage over the competitors in marketing. The customer equity estimate from archived customer’s data enables managers to identify the financial impact of alternative marketing value drivers of the customer’s equity. The areas covered are brand advertising, quality or service improvements, loyalty programs. Through computation, it is possible to determine the economic return for prospective marketing initiative. Estimation of each customer’s lifetime value roots on the data about the frequency of their purchases in a category, the average quantity purchased and historical brand-switching patterns, combined with business’s contribution margin. The necessary purchase data is obtainable from the business’s sales records while brand-switching patterns estimates from either longitudinal panel data or survey data similar to those collected in customer satisfaction studies (Yu-Jia, 2011). It is a term used for an aspect essential for a business or project to achieve its set goals and mission. It is a small number of elements that tend to detach the winners from the losers. It is critical to alter the marketing strategies due to the ever-changing markets in order to meet and satisfy the customer’s needs. An example is in the retailing industry, where location is a fundamental factor. The industry