The two giants of the smartphone and tablet markets, Apple and Samsung, lock horns across the globe. Amid accusations of patent stealing, the two companies vie for dominance in markets with increasingly bitter words. Each company has its devotees; each company has a host of new ideas, gadgets, and applications. Each time one company gains a temporary advantage, the other strikes back with something new. Is there room on the global stage for both of them? Appendix 3, Marketing by the Numbers, discusses other marketing profitability measures beyond the return on marketing investment (marketing ROI) measure described in this chapter. Review Appendix 3 to answer the questions using the following information from Apple’s and Samsung’s income statements (all numbers are in millions): Apple Samsung Sales $170,910 $189,680 Gross Profit $ 64,304 $ 70,228 Marketing Expenses $ 8,122.5 $ 23,396 Net Income (Profit) $ 50,155 $ 18,986 2-12. Calculate profit margin, net marketing contribution, marketing return on sales (or marketing ROS), and marketing return on investment (or marketing ROI) for both companies. Which company is performing better? (AACSB: Written and Oral Communication; Information Technology; Analytical Thinking) M02_ARMS6788_12_SE_CH02.indd 90 04/04/14 2:29 PM Chapter 2: Company and Marketing Strategy 91 # 149127 Cust: Pearson Au: Armstrong Pg. No. 91 Title: Marketing: An Introduction 12/e Server: C/M/Y/K Short / Normal DESIGN SERVICES OF S4carlisle Publishing Services Video Case OXO 2-13. Find the income statements for two other competing companies in your region of the world. Perform the same analysis for these companies that you performed in the previous question. Which company is doing better overall and with respect to marketing? For marketing
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