341 F10 C2 Strategy

341 F10 C2 Strategy - Return on Marketing Investment (ROMI)...

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Chapter 2
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Better Understand Market Strategy in preparation for developing your MARKETING PLAN (Your Term Project)
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5 C’s Analysis Company Competitors Customers Collaborators Context Marketing Mix Place Price Product Promotion Marketing Strategy Target Position Segment Customer Relationship Management Customer Retention Customer Acquisition Profits Create Value Capture Value Understand Value Sustain Value Differentiate
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1. Executive Summary 2. Company Description 3. Current Situation (5 C’s, SWOT) 4. Objectives and Issues 5. Marketing Strategy (Segment-Target-Position, 4 P’s) 6. Implementation (Action Steps, Budget, Controls)
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Market Share = Brand Sales / Category Sales Net Marketing Contribution (NMC; Marketing Profits) = Sales – COGS – Marketing Expenses
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Unformatted text preview: Return on Marketing Investment (ROMI) = NMC / Marketing Expenses * 100% Marketing Return on Sales (MROS) = NMC / Sales * 100% Revenue (MM) $60 Cost of Goods Sold (MM) $35 SG & A* (MM) $10 Marketing expenses = 80% of SG & A Calculate: Gross Margin as a percent, Net Profit (before tax), NMC, ROMI, and MROS * SG & A = Selling, General and Administrative expenses Percent Gross Margin = ($60 MM - 35 MM) / $60 MM = 41.7% Net Profit before tax (MM) = $60 - $35 - $10 = $15 Marketing Expenses (MM) = $10 * .8 = $8 NMC (MM) = $60 - $35 - $8 = $17 ROMI = $17 MM / $8 MM * 100% = 212.5% MROS = $17 MM / $60 MM * 100% = 28.3%...
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This note was uploaded on 04/22/2011 for the course BUS M 341 taught by Professor Scottsmith during the Fall '10 term at BYU.

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341 F10 C2 Strategy - Return on Marketing Investment (ROMI)...

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