Solution-Net marketing contribution

Net marketing contribution

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Reference no: EM13103946

Net Marketing Contribution

Marketing by the Nurnbers, discusses other marketing profitability metrics beyond the return on marketing investment (marketing ROI) measure described in this chapter. Below are profit¬and-loss statements for two businesses. Review Appendix 3 and answer the questions below.

1. Calculate marketing return on sales (or marketing SOS) and rnarketing return on investment (or marketing ROI) for both companies as described in Appendix 3.

2. Which company is doing better overall and with respect to marketing, Explain.

Business A
Net Sales		S800.000.000
Cost of goods sold		375.000.000
Gross Margin		S425.000.000
Marketing Expenses
Sales expenses	$70000000
Promotion expenses	30,000.000
		100.000.000
General and Administrative Expenses Marketing salaries and expenses	S10.000,000
Indirect overhead	80.000.000	90.000.000
Net profit before income tax		9235,000,000
Business B
N. Sales		S900,000,000
Cost of goods sold		400,000.000
Gross Margin		S500,000,000
Marketing Expenses
Sales expenses	$90,000,000
Promotion expenses	50,000,000	140,000,000
General and Administrative Expenses
Marketing salaries and expenses	S 20,000,000
Indirect overhead	100,000,000	120,000.000
Net profit before income tax		0240,000,000

Reference no: EM13103946

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Net marketing contribution

Reference no: EM13103946

Reference no: EM13103946

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