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| Corporate practice bd |
What is Marketing Cost?
Marketing
costs are include all the expenses that the marketing expert promote their product and
brand. These marketing costs or expenses include expenses incurred to vary the title of products,
promotion of products, inventory costs, distribution of products etc. Marketing
costs are generally composed of two factors- fixed costs and variable
costs. the worth is
additionally accustomed determine the danger related to budgets
Example of Marketing cost:
There are some common example of selling costs
are including-
01.Marketing overhead
02.Advertising
03.Sales incentives
04.Partners commission
05.Sponsorship
06.Promotion
07.Media production
08.Consulting fee
09.Marketing location
10.Event management
11.Marketing Technology
12.Design & Development
13.Business Travel
14.Training Program
15.Branding
16.Merchandising
17.Distribution
18.Public relationship
19.Menu cost
20.Promotional items
21.Direct Mail
22.Marketing collateral
23.Selling cost
24.Entertainment & Gift
25.Customer Acquisition cost
26. Agency fees
27. Customer surveys
28.Printed materials and displays
29. Online advertising
30. Social media monitoring and participation.
Let,s start with Practical Example
Practical Example. (01) (Try yourself)
Smith air frshener company of waco, texas, marketing a single product in waco and dallas. marketing expense for the past years
Sales salaries=TK.86,000
Sales person expense =TK16,200
Advertising =TK.24,000
Delivery expense=TK.25,200
Credit investigation expense=TK.6,800
Collection expense=Tk. 11,400
Total Amount =1,69,600
Additional information
a.The company has 5 salesperson three in dallas and two in waco and each is paid the same salary
b.The sales person received equal allowance for expense except that the dallas sales person each received Tk.400 per year
c.All advertising place according to the number of subscriber to the waco and dallas daily newspaper Tk.1,50,000 and 7,50,000 respectively.
d.delivery is made by outside agency which charges at flat annual fee.the agency made Tk.4,800 deliveries (Tk.3,000 in dallas and Tk.1,800 in from waco)
e.680 new customers were obtain(400 from dallas 280 from waco)
f. 6,000 customers remittance were received (4,500 from dallas and 1,500 from waco).
Required:
01.Prepare a marketing cost analysis for the two territories.