Marketing Performance Tools and Application Exercises
14.1Market Demand and Market Share: This marketing performance tool is used to answer questions A (below) and
B below (next page).
A. What would be the change in the net marketing contribution if the market growth rate varied by plus 1
percent to 7.3 percent or by minus 1 percent to 5.3 percent?
Market-Based Management Copyright © 2012
Sixth Edition –39– Pearson Education, Inc.
Instructor’s Manual– Chapter 4 Publishing as Prentice Hall
B. What would be the changes in the net marketing contribution as the result of a 1-point drop in market
share to 15.2 percent or a 1-point increase to 17.2 percent?
Market-Based Management Copyright © 2012
Sixth Edition –40– Pearson Education, Inc.
Instructor’s Manual– Chapter 4 Publishing as Prentice Hall
14.2Customer Revenue and Percent Margin: This marketing performance tool is used to answer questions A and B
below.
A. How much does customer volume need to change to achieve the planned net marketing contribution
for 2013 if the average customer revenue decreases by $500 in 2013?
Teaching Note
If revenue per customer
is $500 lower in 2013,
Stericycle would need
Growing revenue per
customer is a key partof
Stericycle’sprofitable
growth plan. Changing
B. How would the net marketing contribution, marketing ROS, and marketing ROI change by increasing
the percent margin 2 points to 52 percent in 2013?
Teaching Note
Stericycle’s marketing
profits increase by 5.6
percent, from $722
The higher margin would
also have a positive
affect onmarketing ROS,
14.3Marketing and Sales
Expenses: This marketing
performance tool is used to
answer questions A and B
below.
Market-Based Management Copyright © 2012
Sixth Edition –41– Pearson Education, Inc.
Instructor’s Manual– Chapter 4 Publishing as Prentice Hall
A. What would be the affect on the net marketing contribution, marketing ROS and marketing ROI if the
marketing and sales expenses as a percent of sales were 15 percent of sales in 2013?
Teaching Note
Increasing marketing and
sales expenses by1
The higher marketing
and sales expenses
B. What would be the affect on net marketing contribution, marketing ROS and marketing ROI if
marketing and sales expenses were 13 percent of sales in 2013?
Teaching Note
Lowering marketing and
sales expenses by 1
percentage point would
increasethe net
The lower marketing and
sales expenses would
also increase marketing
Market-Based Management Copyright © 2012
Sixth Edition –42– Pearson Education, Inc.
Instructor’s Manual– Chapter 4 Publishing as Prentice Hall