Net marketing contribution (NMC) is a measure of marketing profitability that includes only components of profitability controlled by marketing.
NMC = net sales – cost of goods sold – marketing expenses (The marketing expenses include sales expenses, promotion expenses, freight expenses, and the managerial salaries and expenses of the marketing function).
More from this Section
- Partner relationship management
Refers working closely with partners in other company departments and outside the company to jointly bring greater value to customers.
- Online advertising
Online advertising– advertising that appears while consumers are browsing the web, including display ads, search-related ads, online classifieds, and other forms.
- Production concept
The production concept is the idea that consumers will favor products that are available and highly affordable.
- Survey research
For gathering primary data by asking people questions about their knowledge, attitudes, preferences, and buying behavior.
- Consumer products
Consumer products are products and services bought by final consumers for personal consumption. Marketers usually classify these products and services...
- Product sales force structure
Product sales force structure refers to a sales force organization in which salespeople specialize in selling only a portion of the company’s products or lines.
- Operating expense percentage
The operating expense percentage indicates the portion of net sales going to operating expenses- calculated by dividing total expenses by net sales.