November 04, 2018

Carrying Capacity

Here's the biological definition of Carrying Capacity (click here).

In marketing, the Carrying Capacity of a brand is the amount of new customers that can be acquired while satisfying short-term and/or long-term brand profitability requirements.

There are few things more important to the new Marketing Leader than knowing the Carrying Capacity of the brand on Day One of a new job. The new Marketing Leader first sits down with the CFO and learns what the short-term and long-term profitability targets are. Then, the new Marketing Leader runs a handful of simulations, measuring what happens to both short-term and long-term profit as customer acquisition spend is varied.

Tomorrow, I'll show you an example of what Carrying Capacity really means to the new Marketing Leader.


No comments:

Post a Comment

Note: Only a member of this blog may post a comment.

You Were Warned Back In Early Spring / Summer

I told you earlier this year that what is coming in 2023 isn't going to be pretty. I sure hope I am wrong. I maybe have a 35% chance of ...