MKTG 300 Assignment #1 In 2017, Apple reported profits of more than $50 billion on sales of $182 billion. For that same period, Microsoft posted a profit of almost $30 billion on sales of $88 billion. So Apple is a better marketer, right? Sales and profits provide information to compare the profitability of these two competitors, but between these numbers is information regarding the efficiency of marketing efforts in creating those sales and profits. Consider the following figures. To better understand performance, marketers look at profit margin, net marketing contributions, return on sales and return on investment. Profit margin tells us the amount by which revenue from sales exceeds costs. Net marketing contribution determines whether a company's current marketing strategy is enough to cover the costs associated with marketing and sales. Return on Sales evaluates a company's operational efficiency. Return on investment is the contribution to profit attributable to marketing (net of marketing spending), divided by the marketing 'invested' or risked. The formulas for these concepts are as follows: 1. Profit margin = Profit / Net Sales 2. Net Marketing Contribution = Gross Profit Marketing Expenses 3. Return on Sales = Net Marketing Contribution/Net Sales 4. Return on Investment = Net Marketing Contribution/Marketing Expenses 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? Share your calculations and your discussion/interpretation of these two companies. Note: Return on Sales and Return on Investment should be expressed as a percentage rounded to the nearest tenth of a percent; profit margin and net marketing contribution should be expressed in terms of dollars and cents. Consumers will always need to purchase groceries, making this a $700 billion industry. But where they shop for groceries has changed with the entry of big-box discounters such as Walmart and Target. Almost 25 years ago, executives at Walmart made a strategic decision to expand into the grocery industry. Now more than half of Walmart's sales are from this category. Walmart has more than 3,000 Supercenters with full grocery stores and another 200 smaller "Neighborhood Markets" that offer primarily groceries. Walmart captures more than $145 billion of the $700 billion U.S. consumers spend on groceries annually. Walmart's Sams Club grabs another $30 billion of annual groceries sales. As a result, the share of grocery sales captured by traditional supermarkets fell to 51 percent in 2017, a 23 percent drop from 2000. 1. Calculate Walmart's market share in the grocery industry. 2. What is Walmart Corp's market share when you add in Sam's Club? 3. How much sales revenue is one percent of the market worth in this industry