| Analyzing the Total Marketing Function |
| Analysis of Sales Volume |
- Start with a predetermined benchmark
- Sales Potential
- Last years sales
- Moving average
- Compare to actual sales
- Even if results are acceptable farther analysis is necessary because of the Iceberg
Principle
|
| Text Example: Widget Manufacturing Co |
| Year |
Sales Potential |
Actual Sales |
% of potential |
| 1993 |
$2,000,000 |
1,000,000 |
50% |
| 1994 |
$2,200,000 |
1,400,000 |
63.6% |
| Increases |
400,000 |
What lies
beneath
the iceberg? |
| 40% |
|
| Territory analysis |
| Territory |
Year |
Sales
Potential |
Actual
Sales |
% of
Potential |
| A |
93 |
$1,000,000 |
400,000 |
40% |
| 94 |
$1,100,000 |
675,000 |
61.4% |
| B |
93 |
$600,000 |
350,000 |
58% |
| 94 |
$700,000 |
500,000 |
71.4% |
| C |
93 |
$400,000 |
250,000 |
62.5% |
| 94 |
$400,000 |
225,000 |
56.3% |
| Total |
93 |
$2,000,000 |
1,000,000 |
50% |
| 94 |
$2,200,000 |
1,400,000 |
63.6% |
|
| Product analysis |
| Year |
Ter |
Product |
Sales
Potential |
Actual
Sales |
% of
Potential |
|
|
| 93 |
A |
Regular |
700,000 |
300 |
42.9 |
|
|
| Deluxe |
300,000 |
100 |
33.3 |
|
|
| B |
Regular |
400,000 |
250 |
62.5 |
|
|
| Deluxe |
200,000 |
100 |
50.0 |
|
|
| C |
Regular |
200,000 |
150 |
75.0 |
|
|
| Deluxe |
200,000 |
100 |
50.0 |
|
|
| |
| 94 |
A |
Regular |
750,000 |
200 |
26.7 |
|
|
| Deluxe |
350,000 |
475 |
135.7 |
|
|
| B |
Regular |
450,000 |
350 |
77.8 |
|
|
| Deluxe |
250,000 |
150 |
60.0 |
|
|
| C |
Regular |
200,000 |
150 |
75.0 |
|
|
| Deluxe |
200,000 |
75 |
37.5 |
|
|
| 93 |
Total |
|
$2,000,000 |
1,000,000 |
50% |
|
|
| 94 |
$2,200,000 |
1,400,000 |
63.6% |
|
|
|
| Customer analysis |
| Same analysis by customer |
| Marketing cost analysis |
Application of basic accounting techniques to determine the relationship
between
- Marketing costs
- Sales
- Profits
|
Full Cost
Approach |
- Assign all costs direct and indirect to the
- product
- territory
- customer
- Theoretically most accurate
- Arbitrary costs assignments can be bothersome
|
| Direct Cost Approach |
- Only direct costs assigned
- Many modifications
- Cost assignments can be a source of much debate
|
| Example |