Annual-plan control requires making sure that the company is not overspending to achieve sales goals. The key ratio to watch is the
A) marketing profitability ratio.
B) marketing sales ratio.
C) marketing expense-to-sales ratio.
D) share of mind ratio.
E) marketing deliverables ratio.

Question

Quizplus · Accepted Answer

The marketing expense-to-sales ratio is the key ratio to watch in annual-plan control as it helps in determining whether the company is overspending to achieve its sales goals. This ratio compares the marketing expenses incurred by the company with the sales generated from those expenses. Ideally, the ratio should be low indicating that the company is achieving its sales goals without overspending on marketing.

Annual-Plan Control Requires Making Sure That the Company Is Not