1. Weekly Marketing Outputs as Inputs for the Biz-Cafe Machine
Ted Mitchell

2. Outputs at one level can be Inputs at another level of analysis
Quantity Demanded is an output resulting from the 4 P’s being inputted
Quantity Demanded is an Input into the generation of Revenue being Outputted
Revenue is an Input into the Gross profit being generated as an Output
Gross profit is an Input Into the Marketing Profit Being Outputted
Marketing Profit is an Input into the Net Profit being Outputted

3. Can Outputs be used as Inputs?
Consider levels of Customer Awareness
Direct Link between Amount of Advertising dollars Inputted, A, and the Quantity of Units sold, Q
However Customer Awareness, W, is also an output that is generated by the advertising dollars, A, inputted.
Awareness levels, W, can be considered a marketing input that generates the number of units sold, Q
Awareness levels, W, can be treated as either an input or an output depending on the level analysis

4. Advertising Creates Demand and Awareness
Now I must consider levels of customer awareness as a potential Input
The Coffee Shop Machine
Advertising
Outputs from The Marketing Machine
Revenues
Quantity of Goods Sold
Profits
Awareness levels

5. Potential for Two-Step Machines
Advertising
Awareness levels
Demand, Quantity sold

6. It might be easier to measure Awareness levels, W
Than to measure and aggregate all the individual impacts of advertising, radio, TV, social media, word of mouth, etc.
Demand, Q = (sales per awareness point) x percent awareness, W

7. Can Outputs be used as Inputs?
Consider levels of Quality of Product Mix
Direct Link between Amount of Product Quality Inputted, U, and the Quantity of Units sold, Q
However Customer Ratings (stars), is also an output that is generated by the the quality of the product mix
Star Rating on Quality, *, can be considered a marketing input that generates the number of units sold, Q
Customer Quality Ratings, *, can be treated as either an input or an output depending on the level of analysis

8. Product Mix Creates Demand and Customer Quality/Star ratings
Now I must consider levels of customer ratings as a potential Input
The Coffee Shop Machine
Product Quality
Outputs from The Marketing Machine
Revenues
Quantity of Goods Sold
Profits
Customer Ratings *

9. Potential for Two-Step Machines
Product/Service Mix
Customer * ratings
Demand, Quantity sold

10. Easier to Measure Customer Ratings on Quality Evaluations, *
Than to measure and aggregate all the individual impacts of quality of coffee, service time, variety of choices, depth of line, etc.??
Demand, Q = (sales per *) x (number of stars *)

11. Can Outputs be used as Inputs?
Consider levels of Price
Direct Link between Price Tag Inputted, P, and the Quantity of Units sold, Q
However Customer Ratings on the price (stars), is also an output that is generated by the price tag on the pricing mix
Star Rating on Price, *, can be considered a marketing input that generates the number of units sold, Q
Customer Price Ratings, *, can be treated as either an input or an output depending on the level of analysis

12. What choice of ingredients do you have for the Pricing Mix?
Now I must choose the pricing mix
The Coffee Shop Machine
Pricing Ingredients
Outputs from The Marketing Machine
Revenues
Quantity of Goods Sold
Profits
Demand

13. Product Mix Creates Demand and Customer Quality/Star ratings
Now I must consider levels of customer ratings as a potential Input
The Coffee Shop Machine
Price Mix
Outputs from The Marketing Machine
Revenues
Quantity of Goods Sold
Profits
Price Tag Ratings *

14. Potential for Two-Step Machines
Pricing Mix
Customer * ratings
Demand, Quantity sold

15. Easier to Measure Customer Ratings on Price Evaluations, *
Than to measure and aggregate all the individual impacts of price tags, coupons, deals, using credit, etc.??
Demand, Q = (sales per *) x (number of stars *)

16. Other Metrics that are outputs that could be inputs
Customer Satisfaction
Ambience (What is being bought?)
Service (Capacity)
(Hours) Convenience
That is why it is so important to have a clear overarching goal for the final output!

17. If Customer satisfaction rating is an
Input to a marketing machine
Then what is the output to be measured?

18. If Customer ambience rating is an
Input to a marketing machine
Then what is the output to be measured?

19. If Customer service rating is an
Input to a marketing machine
Then what is the output to be measured?

20. If Customer Ratings of Convenience is
An Input to a marketing machine
Then what is the output to be measured?

21. Still leaves the Big Question!
What should be changed to change the rating.
If I find a clear and un-deniable connection between an increase in customer evaluation ratings, E, and the quantity being sold, Q
It does not explain which of the 4P’s must be adjusted, by how much it must be adjusted to increase the E rating to achieve the desired sales volume

22. Any Questions about
The potential role of the customer’s evaluation/star ratings as Inputs to a Marketing Machine that Generates Outputs
Awareness
Price
Ambience
Service
Hours