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Home→The Westburn Dictionary of Marketing→M→marketing expense to sales ratio

marketing expense to sales ratio

Definition:
The ratio (more often a percentage figure) of marketing expenditure to sales revenue/gross sales revenue. Such a ratio is typically one of a number of financial criteria to judge the competence of the control over profitability demanded by an organization from its marketing function. The organization's financial strategy may strictly constrain this ratio as a means of controlling profitability.

Cross-References:
[marketing budget]

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© Westburn Publishers Ltd 2002, The Westburn Dictionary of Marketing edited by Michael J Baker, ISBN 978-0-946433-01-8. www.themarketingdictionary.com. Entry: [James R. Bureau], [1998].