* NetMarketingContribution (NMC) is a calculation that determines whether a company’s current marketing strategy is enough to cover the costs associated with marketing and sales.
* It is a measure of contribution to company profits after marketing and sales expenses are accounted for.
* The current market demand and the company’s market share are important aspects of the NMC calculation. At the basic level, the NMC calculation is:
Sales revenue X %Gross Profit – Marketing Expenses.
* It sometimes gets complicated while trying to calculate the true SalesRevenue and GrossProfit of a company in relation to the market demand and market share.
E.g.: A company has market sales revenue of $3100, a gross profit of $15.50 and marketing expenses of $5,000. The net market contribution is given by:
3100X15.50-5000 = $43,050
Thus the NMC for the company is $43,050
#NetMarketingContribution
