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Terms in this set (18)
M&A framework: A wants to aquire B. Young co has hot brand new product, but limited distribution. B has biggest sales force on planet earth, but their product stinks. Take product, pump it right into the sales force & they have the hottest product w hottest distribution. Obvious synergy
Internal cost/ cost overlap
M& A framework. Both have HR spends $50 mil/year; wouldn't it be great if we combine? But we can't shrink to greatness; this would be on cost side.
Components of revenue
Change in revenue per account? # of accounts?
Company or industry-specific issue?
Do we have info on industry profits overall? (Start w big picture)
If I know costs better I still can't grow it. So I need pricing improvement or unit improvement
Industry's growing 5%
Obviously we're doing something different from industry overall/ our competitors. (Our profits are flat). Go off data: (move to business situation & start w competition)
Major competitors & concentration of market share?
4 classes of ad agencies (segmentation) what's the mix? Ask clarifying ?s What percentage of total pie does each of these have?
few sellers, some price variation (Clarifying 1 particular segment) Only 4-5. Ok...
Profitability set for each of major segments?
Segment our client in is shrinking; client is outperforming. Aha! Not industry overall; segment within that's driving overall profitability
Customers really driving profitability
Only segment that's growing on a consistent basis. I'm going to switch gears unless we have any more info..
Customers? Segments? Growth rate for each s Share & then change in spending
Share of spending. Bulk of spending is being driven by large multi-nationals
Growth is flat so
Segment largest sefmemt
Total ad spend
How has that changed in terms of total dollars vs previous years?
Recommend to client?
Area we're in, people are caring less & less about. We're in creativity, brand, building emotional connection to customers. Interactive is in stats. What do the customers want?
O&O what's their mix of b-ness; what percentage of media is from various media types? Jump back bc I think it might be relevant
Client spend is.... Area our client is in is becoming less & less relevant. Happens to be big today, but customers are shifting
Price: What is each client willing to pay?
Ad spend commissions; interactive is higher = more profitable product
What's driving trend? Look further downstream; how has that changed through various media types?
Structural shift driven by viewers that's flowing through to advertisers who want to be where ppl are that's impacting profits of agencies trying to serve these advertisers
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