Presenting Two-Factor Machinein a Cartesian System

Ted Mitchell

There are TWO different formats

• For presenting the elements in a Two-Factor Model of a Marketing Machine as graph in a Cartesian System of Coordinates

• 1) Presentation as a Factor Focused Graph• 2) Presentation as a Slope-Origin Graph using

an Input-Output Focus

#4 Presentation Method Using a Factor Focused graph in a

Cartesian System

The Key characteristics are

• 1) the rate of conversion, r, is the variable scaled on the Y-axis

• 2) The amount of the Input, I, is scaled on the X-axis

• 3) The amount of Output, O, the machine generates is the area encompassed by the input, I, and the conversion rate, r.O = r x I

The Factor-Focused Presentation Using Cartesian System

Input Factor on the X-axis

Conversion Rate Factor on the Y-Axis

0, 0Amount of Input, I

conversion rate, r

o

Observed point (I, r)

Area is the Machine’s Output = I x r

The Factor-Focused Presentation Using Cartesian System

Input Factor on the X-axis

Conversion Rate Factor on the Y-Axis

0, 020 Servers,

150 cups sold per server

X

Observed point (20, 150)

Area is the Observed Output = 150 x 20 =

3,000 cups sold

The Factor Focused presentation

• Is very Useful for the Diagnostic Analysis of the Changes or of the Differences between two performances.

#5 Presentation as a Slope-Origin Graph

in a Cartesian System of Coordinates with a Focus on Input and Outputs

Ted Mitchell

5) Presentation as a Slope-Origin Graph

X-axis0, 0 X

Y-axis

oObserved point

P = (x, y)Y

Slope of LineY/X

Origin 0, 0

5) Presentation as a Slope-Origin Graph

Input on the X-axis

0, 0Input, I

Y-axis

o

Observed Point, P = (I, O)

Output, O

Slope of Line, r = O/Iis the conversion rate

#5 The Input-Output as A Slope-Origin Equation

Input Factor

Output

0, 020 Servers

3,000 cups sold

X

Observed point P = (20, 3,000)

Conversion rate sloper = 3,000/20 = 150

cups per server

Slope-Point Equation for Two-Factor machine

3,000 cups = r x 20 cups

The Slope-Origin Presentation

• Is very useful for presenting the forecast from a single calibrated performance in which there is a proposed change in an input for calibrated level of the conversion rate.