A. Explain the concept of NET MARKETING CONTRIBTION.

B. What fundamental marketing strategies can a business pursue to grow marketing profits?
C. Use examples to illustrate these various strategies.

A. The concept of Net Marketing Contribution (NMC) is an important metric used in marketing to evaluate the profitability of a particular marketing initiative or campaign. NMC measures the financial impact of marketing activities by comparing the incremental revenue generated by marketing efforts with the associated costs. In other words, it calculates the difference between the additional revenue generated and the marketing expenses incurred.

To calculate NMC, you need to follow these steps:

1. Identify the incremental revenue generated: Determine the increase in sales or revenue directly attributable to your marketing efforts. This could involve measuring sales before and after a marketing campaign or comparing the performance of two different marketing strategies.

2. Calculate the associated marketing expenses: Sum up all the costs incurred in running the marketing campaign, including advertising costs, promotional expenses, personnel salaries, and any other relevant expenses.

3. Subtract the marketing expenses from the incremental revenue: Deduct the total marketing expenses from the incremental revenue. The resulting figure is the NMC, which indicates the net financial impact of your marketing efforts.

B. There are several fundamental marketing strategies a business can pursue to grow marketing profits. These strategies focus on increasing revenue, reducing costs, and maximizing efficiency. Some common strategies include:

1. Market penetration: This strategy aims to increase market share by selling more of the existing products to existing customers. It involves implementing aggressive marketing tactics such as advertising, promotions, and sales incentives to drive higher sales volume.

2. Market development: This strategy involves expanding into new markets or customer segments. Businesses pursue market development by identifying untapped market opportunities and adapting their products or services to appeal to new customers. This can include targeting different demographics, geographic regions, or industries.

3. Product development: This strategy focuses on introducing new or improved products to existing markets. By innovating and enhancing existing offerings, businesses can attract new customers or encourage existing customers to make repeat purchases. Product development strategies involve research and development, product design, and effective marketing and sales strategies.

4. Diversification: This strategy involves expanding the business into new product lines or industries. By diversifying its offerings, a business can reduce its dependency on a single product or market. Diversification can be achieved through acquisitions, partnerships, or developing new products in-house.

C. Let's illustrate these strategies with examples:

1. Market penetration: A fast-food chain may introduce a limited-time promotion offering discounted meal combos to attract more customers and increase sales volume. By heavily advertising the promotion and offering additional value to existing customers, the chain aims to achieve higher market share and overall profits.

2. Market development: An e-commerce retailer specializing in sports equipment may identify an opportunity to expand into the fitness apparel market. They could develop a new line of workout clothing and target fitness enthusiasts as a new customer segment. By leveraging their existing customer base and brand reputation, the retailer can tap into a different market and increase their marketing profits.

3. Product development: An electronics manufacturer may release an upgraded version of an existing smartphone model with enhanced features and functionality. By marketing the new product to existing customers and emphasizing the benefits of the upgrade, the manufacturer aims to drive repeat purchases and boost profits through increased sales.

4. Diversification: A luxury fashion brand may diversify its offerings by acquiring a high-end jewelry brand and integrating it into their product portfolio. By expanding into the jewelry industry, the fashion brand can attract a new customer base and leverage cross-selling opportunities to increase their overall marketing profits.

These examples illustrate how businesses can deploy different marketing strategies to achieve growth and maximize profits. The selection of the most appropriate strategy depends on various factors, including the company's goals, target market, competitive landscape, and available resources.