We found no consistent correlation between marketing spending as a percentage of dollar sales and either marketing impact or ROMI. Brands that spent more on marketing as a percentage of dollar sales (that is, 30 to 35 percent rather than 20 to 25 percent) did not drive more volume, but they did realize lower returns on their investment. We therefore conclude that spending as a percentage of dollar sales is not viable as either a standard managerial target for marketing budgets or a competitive benchmark.
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