Principles of Marketing (16th Edition)
Principles of Marketing (16th Edition)
16th Edition
ISBN: 9780133795028
Author: Philip T. Kotler, Gary Armstrong
Publisher: PEARSON
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Chapter 2, Problem 2.14MA
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.

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  • 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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