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Market-Based Management 6th Edition by Roger Best
Edition 6ISBN: 978-0130387752Market-Based Management 6th Edition by Roger Best
Edition 6ISBN: 978-0130387752 Exercise 14
The four interactive marketing performance tools and application exercises outlined here will strengthen your understanding of the profit impact of managing marketing profitability. To access the tools, go to www.MBMBEST.com. You may enter the data presented in each exercise to obtain the answers to the questions. You may also enter other data to see the results, and you may save your work. The figure numbers in parentheses are related examples in Chapter 2, but the lettered instructions pertain to the online exercises.
Benchmarking Marketing ROI versus Operating Income as a Percentage of Sales (Figure 2-23)
A. For a company of interest, go online and obtain the operating income and the data needed to estimate the company's marketing ROI. You will probably need to use 75 percent of SGA expenses as your estimate of marketing and sales expenses, because companies rarely report marketing and sales expenses separately in their financial statements.
B. Next, collect the same data for a major competitor. How does the first company compare with this competitor in terms of the marketing profitability metrics (marketing ROS and marketing ROI) and operating income as a percentage of sales? How would these results compare with the average performance shown in Figure 2-24?
Benchmarking Marketing ROI versus Operating Income as a Percentage of Sales (Figure 2-23)
A. For a company of interest, go online and obtain the operating income and the data needed to estimate the company's marketing ROI. You will probably need to use 75 percent of SGA expenses as your estimate of marketing and sales expenses, because companies rarely report marketing and sales expenses separately in their financial statements.
B. Next, collect the same data for a major competitor. How does the first company compare with this competitor in terms of the marketing profitability metrics (marketing ROS and marketing ROI) and operating income as a percentage of sales? How would these results compare with the average performance shown in Figure 2-24?
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Market-Based Management 6th Edition by Roger Best
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