Transcript New software

APPLICATION OF THE KAMAFIP
SOFTWARE
Dr. Laszlo Karpati,PhD., MBA
California Consulting Bt.
2016
www.califorconsult.com
Topics:
• Objective of the KAMAFIP software
• Structure of the KAMAFIP model
• Product-level marketing planning
• Company-level planning
• New calculation methods
• Responsibility of the planner
Objective of the KAMAFIP software 1
• KAMAFIP is an acronym, originated from
KArpati (Laszlo) MArketing FInancial Planner,
English language expression elements
• Its development is based on several decades’
financial-marketing software expertise of the
Author
Objective of the KAMAFIP software 2
• Main aim: financial planning of marketing
resources on both product and company level,
based on the previous period’s results and
expert estimations for the immediate future
of the market(s)
• The software was developed on Excel basis, in
English language
Structure of the KAMAFIP model 1
• KAMAFIP model is based on planning of 15
(or more) product-market combinations and a
company-level summarizing module
• It supposes that production is done at the
domestic factory and the products are sold
both domestically and abroad
• On the basis of the previous period’s figures,
planning can be carried out both on product
and company level for the next business year
Structure of the KAMAFIP model 2
• Model treats different marketing interventions
as discreet variables
• Programme financially evaluates the discreet
variables individually
• Planner can choose any variant from among
all the product-market combinations
• By the summarizing module the companylevel planning can also be carried out
Product-level marketing planning 1
• Model treats any product(family) - market(group
of countries) combinations separately
• Planning starts from the finished business year’s
real figures. For this purpose a separate auxiliary
software (MARKOPTINPE) was developed, based
on GAAP principles
• Inputs of the planning period can be established
by market research and expert estimation
• Company-level summarization can guarantee the
input figures’ verification
Product-level marketing planning 2
• Software characterizes marketing interventions by discreet
variables, as below:
• Price setting: 9 levels (see slide 5)
• Product development: none (level 0) and development:
1st and 2nd level (with increasing cost intensity)
• Trading channel development: none (level 0) and
development: 1st and 2nd level (increasing intensity)
• Marketing communication: basic (level 1) and gradually
developed from level 2 to level 5 by increasing costs
• Total number of combinations: 9*3*3*5= 405
Product-level marketing planning 3
• Variants of the combinations:
Marketing mix P
elements:
Combination
1
...
Combination
405
Price : level 1-9
1
9
0
2
0
2
1
5
Product : level 0– 2
Place (commercial
channel): level 0– 2
Promotion (marketing
communication): level
1-5
Product-level marketing planning 4
• The following figures are calculated in case of each
combinations:
• Net income (before taxation)
• Ratio of the net income of the given combination in
comparison with that of the combination with the highest
net income
• The cost of marketing interventions
• Financial effectivity of the marketing costs
• Planner can select freely from among the 405 combinations
Product-level marketing planning 5
• The most important calculation of the model is
the establishment of price level and
subsequently the expected sales quantity
• Price levels are established automatically by the
average market price, price of the market leader
and by the still acceptable own minimum price
• Expected sales quantities are calculated by the
previously established price levels (1-9) and by
the automatically calculated individual price
sensitivity figures
Company-level marketing planning
• Combination selected by the planner is
transferred to the company-level summarizing
module
• By the help of the summarizing module the
recent period’s figures can be verified, as well
as:
• By summarizing the planning inputs , reality of
the company-level marketing planning can
also be evaluated
New calculation methods 1
– Interpretation of the 4P elements of the
marketing mix (Product, Price, Place, Promotion)
by discreet variables and calculations with them
– Conception of combination of the 4P’s by discreet
values, as an individual approach of the marketing
mix characterization
– Financial ranking method to evaluate the discreet
marketing mix by calculation of net income
New calculation methods 2
– Calculation method of individual contribution of
the 4P elements to the sales
– Definition of the marketing intensity factor and
calculation methods with the factor
– Price level calculation method by market average
price level and by the market leader price
New calculation methods 3
– Individual price sensitivity figure calculation and
its application in establishing the expected sales
quantity
– Methodical solution of indirect marketing cost
estimation and by it calculation of the total
marketing costs
– Calculation method of commercial channel
development’s financial effectivity
Responsibility of the planner
• Success of every planning model can be based on two
basic factors:
• Establishing the reliable input figures, as well as
• Professional knowledge and practice of the planner
• These ones above exist in case of the KAMAFIP
software, too. Faulty or non-relevant input figures may
lead to enormous mistakes without a professional
review and supervision
Author: Laszlo
Karpati wishes
you a lot of
success in
practicing this
software