Principles of Marketing (Second custom edition for DePaul University)
Principles of Marketing (Second custom edition for DePaul University)
16th Edition
ISBN: 9781323142547
Author: Philip Kotler, Gary Armstrong
Publisher: Pearson Education
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Chapter 2, Problem 2.13MA
Summary Introduction

Case summary:

Company MD has profits of more than $6 billion on sales of $28 billion and Company BK has profits of $234 million on sales of $1.1 billion.

Characters in case:

  • Company MD and Company BK

Net profit margin is the amount left after the deduction of all expenses, interest, and preferred stock dividend.

Net marketing contribution is calculated to determine whether the marketing strategy is available to cover the cost which is associated with the company’s sales and marketing.

Return on marketing investment refers to the overall performance of the campaign of the market.

Market return on sales is determined to calculate the difference between the two companies.

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