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Marketing spend is critical – but it should be treated as a preciously scarce resource to be aimed at generating the highest, long-term profits. This means answering questions such as: “Which type of customer is attractive to newly acquire, retain or win back? And which types are not? How much should be spent on attracting, retaining or recovering them?” Some firms have already enacted programs in these areas to begin trying to answer these questions, but more must. This white paper explores ways to get answers to these questions and offers up activity-based management as an ideal source for useful, mission-critical managerial information that is essential for good decision making.

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