Board Options, Inc.

QUESTIONS DIRECTORS SHOULD BE ASKING ABOUT R&D

In technology companies, it is typical to assume that up-front investment means investment in engineering. But isn't market research also an up-front investment?

This tip comes from Ralph Grabowski, an MIT-trained electrical engineer. He calls himself the "Marketing VP," because his role is to help that function in technology companies.

Ralph suggests looking at the ratio between marketing investment and engineering investment. Marketing here would exclude costs associated with sales and promotion.

Based on the enclosed chart developed by Ralph, it would appear that successful technology companies invest more in marketing than engineering. Ralph shows that what he calls "Super Successes" actually invest $2 in marketing for every $1 invested in engineering!

Here is Ralph's chart.

You can read the full article by going to Ralph's website. It is called WWW.MARKETINGVP.COM.

Dr. Laurence J. Stybel & Maryanne Peabody
BOARD OPTIONS, INC.
Sixty State Street, Suite 700 Boston, MA 02109
tel: 617 371-2990
e mail: stybel@aol.com
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