Figure 6.12: Marketing Performance & Profit Impact

INPUT (Yellow Cells)

  • No Negative Numbers
Customer
Potential
Market
Dev. Index
40.0%
Customer
Demand
 
 
Customer
Volume
 
Market
Share
100000
Sales
Revenue
 
MARKETING
ROS
$100,000,000
Gross
Profit
Revenue per
Customer
  25.0%
Percent
Margin
NET
MARKETING
CONTRIBUTION
40.00% $40,000,000
Cost per
Customer
 
 
$25,000,000
Marketing &
Sales Expenses
 
OPERATING
INCOME
MARKETING
ROI
  $10,000,000
General & Admin.
Expenses
166.7% RETURN
ON SALES
10.0%
 
MARKETING ROS 25.0%   40%
MARKETING ROI 166.7%   300%
RETURN ON SALES 10.0%   20%

Instruction: Change data in the yellow cells to observe how the marketing profitability metrics and operating income changes.