Student Questions - bank revenue and IT marketing spend/ratio from Anonymous: MarketingProfs Question 40429

Topic: Student Questions

Bank Revenue And It Marketing Spend/ratio

Posted by Anonymous on 11/21/2012 at 1:56 PM ET 250 Points

IF an international banks total revenue is $200 billion and its annual IT spend is 6 billion how big could its marketing spend be?

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Posted on 11/21/2012 at 2:04 PM Author

AN international banks total revenue is 200 billion and its annual IT spend is 6 billion how big could its market spend be?
Posted by Gary Bloomer on 11/21/2012 at 2:11 PM Accepted

Its market spend "could" be any amount between zero and its total revenue. The better question to ask is what is the aim of the marketing?
Posted by Moriarty on 11/21/2012 at 4:08 PM Accepted

Do please remember that you have a measure called "Return On Investment" which in standard marketing terms is pretty meaningless. If carefully used gives you an indication of how much money your advertising brings in.

This is a very different issue from a huge commercial institution that has bucketloads of funds that it can allocate for certain things that are simply written off against tax.

Understanding the difference will tell you if they are into marketing, or into accounting.

Moriarty
Posted by mgoodman on 11/23/2012 at 1:39 PM Accepted

I don't understand the question. What are you going to do with the answer(s)?

And in the case of a bank, how are you defining "revenue?" Do you mean assets? And what does IT spending have to do with marketing spending?

I don't understand where you're going with this. And regardless it depends on what the bank wants its marketing to accomplish. What is the goal? If there's no goal, then why spend anything on marketing?