Net Marketing (Nmc) Marketing Roi And Marketing ROS

) Net Marketing Contribution (Nmc) Marketing Roi And Marketing ROS are decision-making objectives. Write about the merits and/or limitations of these objectives from a business perspective.

Business performance is usually measured using a number of barometers in order to assist in management decision making, besides giving an outlook of the sustainability of the business operations. Marketing function of an organization for instance can be assessed of its importance in the overall achievement of business targets. Among some of these barometers are; net marketing contribution (NMC, marketing ROI (returns on investment) and marketing ROS (returns on sales). Their merits and demerits have been considered in this discourse as outlined next.

Merits

They assist in setting strategies to increase market demand.

Managerial decision making are boosted by the assessments made by the objectives.

Strategies to increase market size can be formulated for the above analyses.

They facilitate determination of productivity of a certain market.

Market standards and targets can be formulated from the results of the analyses thereby reducing excesses or shortages.

Implementation complexity is generally low since they are simple performance ratios.

Demerits                                                                                                               

ROI application in assessment of performance may constrict growth projections since its figure must be contained within given levels (Scarlett, 424).

ROI application obscures long term investment objectives by emphasizing on the short term.

ROI application is specific in overall management and may not be used in marketing decisions alone.

ROS may not be useful in general decision making procedure for the entire organization.

It is usually difficult to ignore other market factors that the market strategy has to take care of which might render the objectives useless.

NMC may not be indicative of non monetary gains made by an organization.

  1. B) Evaluate the employment of profit-oriented marketing objectives in general from a moral-ethical

Ethical issues that are likely to arise in the translation of market figures should be anticipated and handled accordingly. Professional ethics such as honesty and accountability must be employed to facilitate realization of the objectives outlined by decisions thereon. Profit oriented organizations cannot achieve their objectives without the support of every quarter of the organization which implies that the working relations must be founded on ethical practices (Agbata, 1). Marketing wars between competitive rivals must always be contained in the spirit of clean business deals without infringement of anyone’s rights. Company products’ quality for instance must be stated as required whereas price fixing must appear to be reasonably competitive and friendly to all the stakeholders. Business may not appear to obey the forces of fairness in a cutthroat competitive environment, but instilling professionalism from the beginning of the operations should assist to cultivate the appropriate approach.

 

 

 

Works Cited

Scarlett, Robert CIMA learning system 2007 performance evaluation, Burlington, MA: Butterworth-Heinemann, 2006. Print

Agbata, Chukwuemeka Fred “Ethical Problems in Business- An analysis of its Application in Professional Areas of Business,” 2011. Web. http://www.articlecontentprovider.com/articlesubmit/Article/Ethical-problems-in-Business—An-analysis-of-its-application-in-professional-areas-of-Business-/84624 (accessed 24 April 2011)


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