Marketing 13th Edition by Gary Armstrong, Philip Kotler

Exercise 9

Many companies are realizing the efficiency of telemarketing in the face of soaring sales force costs. Whereas a business-to-business sales call by an outside salesperson on average costs $600, the cost of a telemarketing sales call can be as little as $20 to $30. And telemarketers can make 20 to 33 decision-maker contacts per day to a salesperson's four per day. This has gotten the attention of many business-to-business marketers, where telemarketing can be very effective.
Refer to Appendix 3: Marketing by the Numbers to determine the marketing return on sales (marketing ROS) and return on marketing investment (marketing R01) for company A and company B in the chart below. Which company is performing better? Explain.