Go to Yahoo! Finance (http://finance.yahoo.com/) and find the income statements for two other competing companies. Perform the same analyses for these companies that you performed for the previous question. Which company is doing better overall and with respect to marketing? For marketing expenses, use 75 percent of the company’s reported “Selling General and Administrative” expenses, as not all of the expenses in that category are marketing expenses.

Facebook and Google are both giants in the tech industry. However, if you compare sales and profits, you would think that Google is a far better marketer than Facebook: Google’s sales last year were more than double Facebook’s sales and its profits were 40 percent higher. Sales and profits provide information to compare the profitability of companies, but between these numbers is information regarding the efficiency of marketing efforts in creating those sales and profits. Appendix 2: Marketing by the Numbers, Marketing Performance Measures, Copyright© 2021 Pearson Education, Inc. discusses other marketing profitability measures beyond the return on marketing investment (marketing ROI) measure described in this chapter. Review the appendix to answer the questions using the following information from the two companies’ incomes statements (all numbers are in thousands):

Transcribed Image Text:

Sales Gross Profit Marketing Expenses Net Income (Profit) Facebook $55,838,000 $46,483,000 $8.472.750 $22.112.000 Google $136.819,000 $77,270,000 $18.344.250 $30,736,000