[Company name]

Targeted Budgeting Tool

[Date]

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

Answer these questions: Enter answers here: ROMI mROMI

What period is this for? FY2005

Existing Customers 12.5 3.1

What is the expected sales revenue from existing customers? $5,000,000

How much marketing investment will be required to support existing customers? $20,000What is the expected incremental revenue from existing customers due to your

marketing investments (in preceding cell)? $250,000

What is your margin percentage for revenue from existing customers? 25%

Up-selling to Existing Customers 4.0 1.4

What is the expected sales revenue from up-selling to existing customers? $1,000,000

How much marketing investment will be required to support up-selling? $250,000

What is your margin percentage for revenue from up-selling? 35%

Customer Rescue 3.3 1.2

How much sales revenue will be "rescued" through marketing efforts? $500,000How much marketing will be required to rescue customers (for example, mitigate

customer churn)? $150,000

What is your margin percentage for revenue from rescued/churned customers? 35%

New Customers 8.0 2.0

What is the expected sales revenue from new customers? $8,000,000

How much marketing investment will be required to win new customers? $1,000,000

What is your expected margin percentage for revenue from new customers? 25%

Branding 1.0 0.3

What are your brand activities (applies to all targeted marketing activities)? $1,000,000What is your expected incremental revenue expected from branding activities (this

period)? $1,000,000

What is your expected margin percentage for revenue from branding? 25%

Other Marketing Investments (Infrastructure) 2.5 0.6

What is the marketing investment required in order to be in the business? $250,000

What is your expected incremental revenue expected from other marketing activities? $100,000

What is your expected margin percentage for revenue from other marketing? 25%

Existing/Up-selling/Rescue/New Customers & Infrastructure

Targeted Budgeting Tool 1 of 2 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 Sales Revenue Gross Margin Marketing Investment ROMI mROMI

Existing Customers $5,000,000 $1,250,000 n/a n/a n/a

Portion due to marketing $250,000 $62,500 $20,000 12.5 3.1

Up-selling to Existing Customers $1,000,000 $350,000 $250,000 4.0 1.4

Customer Rescue $500,000 $175,000 $150,000 3.3 1.2

New Customers $8,000,000 $2,000,000 $1,000,000 8.0 2.0

Branding $1,000,000 $250,000 $1,000,000 1.0 0.3Other Marketing Investments $100,000 $25,000 $250,000 0.4 0.1

Totals/Averages $10,850,000 $2,862,500 $2,670,000 4.1 1.1

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.

Notes:

Total Revenue = incremental revenue due to marketing

Targeted budgeting tool1[1].xls