What is "business acumen"? I didn't really know that, until I read what the CEO wants you to know about Ram Charan. In the book, Charan describes 5 basic principles that I firmly believe every marketer should know. He calls them "the building blocks of money production." Reading the book made me relive my undergraduate years, but it explained these concepts in a very relevant and easily digestible way.As marketers we are most often responsible for driving demand, but in my opinion it is essential that we understand how our work fits into the larger corporate context. Without this understanding, it can be difficult to understand the true ROI of our efforts and speak the language of the CFO / CEO. If we can grasp these fundamentals, we will be able to understand how any business makes money.Below are the five key concepts from the book of Charan and my personal teachings.Concept 1: Cash generation“Cash generation is the difference between all of the money that goes into the business and all of the money that comes out of the business over a period of time. "- Ram Charan Cash flow entering the business comes from sources such as sales of products or services and exits the business through expenses such as rent, advertising costs, and salaries. Cash gives you the ability to stay in business, so Charan calls it “the oxygen supply of a business”. Running out of oxygen and presto… you die!If you were selling lemonade as a kid, you basically understand the concept of cash. If it costs for your lemonade supplies and you sell lemonade for $ 50, you made $ 20! You are in business and you have a positive margin (which we will cover in the next section). Whether it's selling lemonade or electric vehicles for , the importance of money is the same. No money, no business.Concept 2: Net margin“Net margin is the money the business earns after paying all of its expenses, interest, and taxes. These expenses include all costs associated with making and selling the product, as well as running the business, paying interest on loans, and paying income taxes. - Ram Charan Going back to our lemonade example, the net margin explains how much money goes into your piggy bank after selling $ 50 worth of lemonade. You might have made $ 20 after covering your lemonade purchase costs, but what if you advertise in the local newspaper for $ 10 to attract new customers? Your net return went from $ 20 to $ 10.This is part Egypt Phone Numbers List of the reason why understanding net margin is so important to marketers. When we talk about return on investment, it's not enough just how much new net income our efforts generate. We must understand in detail the expenses incurred in operating the business in order to determine the true return on our efforts.BONUS CONCEPT: Gross marginGross margin is calculated by taking the total sales of the business or a line of products and subtracting the costs directly associated with making or purchasing the product or service.Many people follow the gross margin closely because it provides clues about important changes that are affecting the nature of their business. For example, if your gross margin goes from 70% to 55%, it could cost you more to produce your product, or maybe your competition is forcing you to lower the prices while the costs stay the same.Concept 3: Speed of assets“The word speed describes the idea of speed, rotation or movement. Think about the raw materials that go through a factory and become finished products, and think about those finished products that come off the shelves for the customer. It's velocity.“Things have to go through the business to the customer - the faster, the better. "- Ram Charan Many business owners focus on the margin, but neglect the velocity.It's a particularly interesting concept at Seer these days, given our new focus on strategy and data integration between our SEO, PPC, Creative and Analytics divisions. At Seer, we are pivoting our processes and deliverables to focus on larger data sets that fit across all channels by leveraging tools like PowerBI and Tableau, which can handle large volumes of data and produce
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Marketing is the promotion of business products or services to a target audience. ... Common examples of marketing at Dissertation Writing Service that Helps UK Students work include television commercials, billboards on the side of the road, and magazine advertisements. But not all businesses approach the need to market their goods and services the same way.