341 C2 Strategy - = NMC Sales 100 Revenue(MM $60 Cost of...

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Chapter 2
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Analysis Company Competitors Customers Collaborators Context Marketing Mix Place Price Product Promotion Marketing Strategy Targeting Positioning Segmenting Customer Relationship Management Customer Retention Customer Acquisition Pro ± ts Create Value Capture Value Understand Value Sustain Value
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1. Executive Summary 2. Company Description 3. Current Situation (5 C’s, SWOT) 4. Objectives and Issues 5. Marketing Strategy (STP, 4 P’s) 6. Implementation (Action Steps, Budget, Controls)
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Market Share = Brand Sales / Category Sales Net Marketing Contribution (NMC; Marketing Pro ± ts) = Sales – COGS – Marketing Expenses Return on Marketing Investment (ROMI) = NMC / Marketing Expenses * 100% Marketing Return on Sales (MROS)
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Unformatted text preview: = 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 Pro ± t (before tax), NMC, ROMI, and MROS Percent Gross Margin = ($60 MM - 35 MM) / $60 MM = 41.7% Net Pro ± t 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% Every dollar of marketing produced $2.13 in marketing contribution/pro ± t ROMI = 0 means the ± rm’s marketing contribution just covers marketing expenses. MROS = $17 MM / $60 MM * 100% = 28.3% Every dollar of sales produced $0.28 in marketing contribution/pro ± t...
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This note was uploaded on 11/22/2011 for the course MARKETING BUS M 341 taught by Professor Stevehuff during the Fall '11 term at BYU.

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341 C2 Strategy - = NMC Sales 100 Revenue(MM $60 Cost of...

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