Explain the three marketing metrics that should be incorporated into every company's financial reporting
What will be an ideal response?
Every company could benefit by adding these three marketing metrics to its financial reporting.
(1 ) Net Marketing Contribution - provides a measure of marketing profits that demonstrates how much the company's investment in marketing and sales contributes to company profits.
(2 ) Marketing Return on Sales (ROS) - The net marketing contribution as a percentage of sales. A company's operating income as a percentage of sales is equal to the marketing ROS minus other expenses as a percentage of sales.
(3 ) Marketing Return on Investment (ROI) - The ratio of net marketing contribution to a company's investment in marketing and sales expenses. The higher the ratio, the more productive the company's marketing and sales strategies.
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A business intelligence tool that uses abstractions such as color and graphical images like instrument gauges to allow executives to grasp business situations quickly is known as a:
a. Planning Horizon b. Digital dashboard c. Expert system d. Neural network e. Geographic information system
When planning an audit, and auditor should
a. Consider whether the extent of substantive procedures may be reduced based on the results of tests of controls b. Determine overall materiality for audit purposes c. Conclude whether changes in compliance with prescribed internal controls justify reliance on them d. Evaluate detected misstatements