Question: Please answer 2-14 the second question. thanks! Marketing by the Numbers Apple vs. Microsoft In 2014, Apple reported profits of more than $50 billion on

Please answer 2-14 the second question. thanks!

Please answer 2-14 the second question. thanks!

Marketing by the Numbers Apple vs. Microsoft In 2014, Apple reported profits of more than $50 billion on sales 2-13 Calculate profit margin, net marketing contribution, of $182 billion. For that same period, Microsoft posted a profit marketing return on sales (or marketing ROS), and of almost $30 billion on sales of $88 billion. So Apple is a better marketing return on investment (or marketing ROI) for marketer, right? Sales and profits provide information to com- each company. Which company is performing better? pare the profitability of these two competitors, but between these (AACSB: Communication: Use of IT; Analytic Thinking) numbers is information regarding the efficiency of marketing ef- forts in creating those sales and profits. Appendix 2, Marketing 2-14 Go to Yahoo! Finance (http://finance.yahoo.com) and by the Numbers, discusses other marketing profitability mea- find the income statements for two other compet- ing companies. Perform the same analyses for these sures beyond the return on marketing investment (marketing ROI) companies that you performed for the previous ques- measure described in this chapter. Review the Appendix to an- tion. Which company is doing better overall and with swer the questions using the following information from the two respect to marketing? For marketing expenses, use 75 companies' incomes statements (all numbers are in thousands): percent of the company's reported "Selling General and Administrative" expenses, as not all of the expenses Apple Microsoft in that category are marketing expenses. (AACSB: Sales $182,795,000 $86,833,000 Communication Analytic Reasoning; Reflective Thinking) Gross Profit $ 70,537,000 $59,899,000 Marketing Expenses $ 8,994,750 $15,474,000 Net Income (Profit) $ 52,503,000 $27,750,000 Formulas: Profit Margin = Net Profit / Sales Marketing ROI = (Gross Profit - Marketing Expense) / Marketing Expense Marketing ROS = (Gross Profit - Marketing Expense) / Sales

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