Measuring Marketing

Chapter 39 Marketing Cost Per Unit

Measurement Need

Each unit sold has a marketing cost associated with it that reflects the tactics used to promote the product in the market and knowing that cost is a primary responsibility of marketers who wants to lead their business and deliver results.

Solutioni

The marketing cost per unit (MCPU) calculation is simple:

$MCPU=\frac{E_{mt}}{U_t}$

Where

MCPU = marketing cost per unit

Emt = total marketing expense in time period t

Ut = total units sold in time period t

In 2016 Lenovo shipped 55.5 million PCs globally. The total market size was estimated at 260 million units, thereby giving Lenovo a 21.3% market share.ii

Lenovo said it would spend $726 million on marketing in 2016.2 Using these figures, ...