Managing Productivity and Marketing Effectiveness

Managing Productivity and Marketing Effectiveness

• Sustaining profitability and market share requires effective marketing, considering factors like price, volume, and market share, alongside productivity.
• Increased productivity means producing more with fewer resources, a crucial success factor for businesses and nations.
• Productivity improvements reduce worker, material, and machine use to create more or better products, leading to competitive advantages, higher returns, and long-term success.
• Total productivity measures all production inputs. An example is the number of tables made per peso spent on manufacturing costs.
• Productivity is the ratio of output to input.
• A company needing five days to make 200 units has a productivity of 40 units per day.
• Productivity can be compared to past performance, industry benchmarks, or other firms' performance.
• Productivity measures can be applied to service and not-for-profit organizations, though challenges may arise due to output measurement, resource relationships, and revenue absence.
• Operational productivity, the output to input ratio expressed in units, is a measure.
• Financial productivity calculates the output to input ratio based on financial figures.
• Partial productivity focuses on the relationship between output and one part of the input resources, a critical metric for judging the efficacy of a single resource.
• Partial productivity measures how many units or amount of output are made per unit or cost of a single or part of the input resources.
• Total productivity measures the overall output based on the total cost of all input resources.
• Total productivity is a measure of the financial productivity that shows the number or sales value of output in relation to the total cost of all resources used to make that output.
• Total productivity analysis shows the relationship between output and total manufacturing costs.
• Factors that influence productivity improvements include high-efficiency equipment, improved labor productivity, and lack of consideration of operational (firm/division) efficiency.
• Marketing effectiveness needs to address factors like changes in selling prices, sales quantity, product mix dimensions, market size, and market share.
• Changes in these factors affect success and can help or hinder strategic goals.
• Sales variances (differences between actual and budgeted sales) are broken down into price, volume, and mix elements.
• Each variance helps determine the cause of the difference between actual and budgeted sales.