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Telecoms Profitability IG

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Questions/comments from first IG meeting:

-Shouldn't a marketing campaign be judged by the incremental gain in business from that campaign?

-Allocate the costs over the incremental gain in revenue?

-Some marketing costs go to product. Perhaps it is a terminology of what marketing is. Advertising moreso to customers unless we think it is for the overall image of the company.

-Marketing costs include the cost of the marketing VPs.

Mark Spracklen
Mark Spracklen
30 de jan.

Marketing and Advertising are often among the hardest costs to allocate accurately but can be broken down into several major areas.

· Direct Marketing. Ether for specific Products or to Business Customers is very straightforward. To those Products or Customers Groups.

· Product Management. The same applies to the products being managed.

· General Marketing and advertising. This is the biggest one and the major issue. Even if a Campaign is, for example, to 5G, it is more about Brand awareness, and advertising 5G demonstrates the company's Technology ability, which also affects Fixed Services.

It is also difficult to split what is related to Acquisition and what is Retention.

Normally for this we get the best estimates from the relevant Marketing team, then allocate based on Revenue.



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