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What is the marketing expense to sales ratio? Is30% a comfrtable figure. What if the sales to sales force ratio is15% and advertising to sales ratio is5%.What is the normal range of these ratios beyond which the management has to intervene? What is a marketing profitablity analysis?
Perform daily little morning meeting with the employees and know the overall summary. Other than that having weekly meetings for the sales are beneficial. Also auditing on monthly basis are helpful. Always be in touch with the employees.
TARGETS ACHIEVEMENTS are the main criteria to judge this.
See first the expenses in meeting Sales Goals - Marketing Budget + Sales & Marketing Peoples Cost + Incentives [not exact figures, ofcourse Cost to Company]. Now compare this with the Sales Achievement. Every month produce a report - involving HR & Accounts. You will get the result.
My personal rule of thumb is sales & marketing goal should be400%(minimum) of their historical cost. In reverse, the total all-in sales & marketing cost should be25% (maximum based on previously achieved marks) of the sales goals.
