"Without application, the benefits of knowledge cannot be fully achieved." - Roger J. Best
2.4 Benchmarking Marketing ROI versus Operating Income as a Percentage of Sales (Figure 2-23)
For a company of interest, obtain the data needed to estimate the company's marketing ROI and operating income as a percent of sales. You will probably need to use 75 percent of SGA expenses as your estimate of marketing and sales expenses, because companies rarely report marketing and sales expenses separately in their financial statements.
Next, collect the same data for a major competitor. How does the first company compare with this competitor in terms of the marketing profitability metrics (marketing ROS and marketing ROI) and operating income as a percentage of sales?