MRKT 354 Lecture Notes - Lecture 2: Simple Algebra, Earnings Before Interest And Taxes, Financial Statement

• School: McGill University
• Department: Marketing
• Course: MRKT 354
• Professor: Nick Pappatheodorakos

Document Summary

1chapter 2: marketing metrics and marketing profitability: marketing metrics measure marketing performance, marketing analytics are the tools and data used to create marketing metrics, the metrics directly relate to company and business unit profits. Marketing metrics: metrics important in all businesses (health, auto, marketing, marketing metrics indicate business performance and how business will perform in the future. Financial (internal) performance metrics: help a business understand its performance and profitability but do not provide insight into how the business is performing in the market: examples: return on sales, gross profit, return on assets. Internal versus external metrics: to track total performance: a company needs both internal and external performance metrics. = sales * percent gross profit mse - ga expenses other operating expenses: using this info we can create the marketing profitability metric net marketing contribution (nmc) = sales. = nmc g&a expenses other operating expenses.