[Company name] Targeted Budgeting Tool

[Date]
Gray cells are calculated for you. You do not need to enter anything in them. [Company name] CONFIDENTIAL

Existing/Up-selling/Rescue/New Customers & Infrastructure Answer these questions:
What period is this for? Existing Customers What is the expected sales revenue from existing customers? How much marketing investment will be required to support existing customers? What is the expected incremental revenue from existing customers due to your marketing investments (in preceding cell)? What is your margin percentage for revenue from existing customers? Up-selling to Existing Customers What is the expected sales revenue from up-selling to existing customers? How much marketing investment will be required to support up-selling? What is your margin percentage for revenue from up-selling? Customer Rescue How much sales revenue will be "rescued" through marketing efforts? How much marketing will be required to rescue customers (for example, mitigate customer churn)? What is your margin percentage for revenue from rescued/churned customers? New Customers What is the expected sales revenue from new customers? How much marketing investment will be required to win new customers? What is your expected margin percentage for revenue from new customers? Branding What are your brand activities (applies to all targeted marketing activities)? What is your expected incremental revenue expected from branding activities (this period)? What is your expected margin percentage for revenue from branding? Other Marketing Investments (Infrastructure) What is the marketing investment required in order to be in the business? What is your expected incremental revenue expected from other marketing activities? What is your expected margin percentage for revenue from other marketing?

Enter answers here:
FY2005

ROMI 12.5

mROMI 3.1

$5,000,000 $20,000 $250,000 25% 4.0 $1,000,000 $250,000 35% 3.3 $500,000 $150,000 35% 8.0 $8,000,000 $1,000,000 25% 1.0 $1,000,000 $1,000,000 25% 2.5 $250,000 $100,000 25% 0.6 0.3 2.0 1.2 1.4

Targeted Budgeting Tool

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2/12/2008 8:32 PM

[Company name] Targeted Budgeting Tool Summary Sheet
[Date]
These cells are calculated for you. You do not need to enter anything in them. [Company name] CONFIDENTIAL

Revenue Source Existing Customers Portion due to marketing Up-selling to Existing Customers Customer Rescue New Customers Branding Other Marketing Investments Totals/Averages

Sales Revenue $5,000,000 $250,000 $1,000,000 $500,000 $8,000,000 $1,000,000 $100,000 $10,850,000

Gross Margin Marketing Investment $1,250,000 n/a $62,500 $20,000 $350,000 $250,000 $175,000 $150,000 $2,000,000 $1,000,000 $250,000 $1,000,000 $25,000 $250,000 $2,862,500 $2,670,000

ROMI n/a 12.5 4.0 3.3 8.0 1.0 0.4 4.1

mROMI n/a 3.1 1.4 1.2 2.0 0.3 0.1 1.1

Notes: Total Revenue = incremental revenue due to marketing Average ROMI = (Sum of sales revenue affected by marketing)/(Sum of related marketing expenditures) Average mROMI = (Sum of gross margin affected by marketing)/(Sum of related marketing expenditures) ROMI, mROMI cells are pink if ROMI or mROMI is less than average; otherwise, the cells are pale green.

Targeted budgeting tool1[1].xls