COST INVOLVED IN MARKETING PRODUCTS

1
COST INVOLVED IN MARKETING PRODUCTS

• PRODUCTION COST
• Direct cost of production
• Raw material cost and direct labour cost.
• Indirect cost of production
• Indirect labour cost
• Transportation
• Repairs and maintenance
• Electricity
• Telephone cost
• Administrative cost

2
FIXED AND VARIABLE COST

• FIXED COST These are costs that do not change as
  output increases or reduces in the short run.
• Building
• Machines
• Fixtures and fittings
• Vehicles
• Rent

3
VARIABLE COSTS

• These are costs that change as output increases
  or reduces in the short run or in the short
  period. These cost can increase and decrease as
  production increases or reduces
• Examples of variable costs
• Labour cost
• Raw material cost
• Electricity
• Tranportation cost
• Administrative cost
• Advertising cost
• Research and development cost

4
ADMINISTRATIVE COST

• Management
• Consultancy
• Telephone cost
• Printing cost
• Faxing cost
• Cleaning and repair cost

5
ADVERTISING COST

• Television ITV, CNN
• Radio Heart FM
• Newspapers The Sun, Daily Mirrow, Express and
  star etc.
• Internet YAHOO, GOOGLE, FIREFOX,
• Cinema
• Outdoor and transportation

6
Other costs involved in marketing products

• Tax
• Interest on loans
• Sales promotion cost
• Direct marketing cost
• Divident paid to shareholders
• Packaging
• Labelling
• Styling
• Branding