The Measurement And Improvement of R D Marketing Effectiveness

Cover The Measurement And Improvement of R D Marketing Effectiveness
The Measurement And Improvement of R D Marketing Effectiveness
Edward Baer Roberts
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Our final success measure that seems of possible interest is the return on proposal investment. All of us are familiar with return on investment criteria as usually applied in manufacturing. Too seldom do we worry about return on proposal investment criteria for application to the marketing of research and development. The return on proposal invest- ment is being measured relatively simply s dollars spent on preparing pro- posals in relation to dollars won by these companies. (Here again we are
... concerned with new business competitions for R&D workj formally competi- tive, over $100, 000 in size. ) Table 3 shows what we found- la terms of dollars won relative to the proposal dollars spent to win these dollars (the Return on Proposal Invest- ment Factor), the first ranked com. Pany won 27% tiroes the dollars that it spent to win. This is not to say that the company profited by this success factor. If we apply a six percent profit factor to the direct dollars won, this company comes cut just a little in the black; that is^ estimated pro- fits on the contracts wen slightly exceed the proposal dollars that the company spent to win these contracts.

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