RAWANA3465 RAWANA3465

10-12-2022
Business

contestada

a common way to assess the effectiveness of all promotion expenditures during the past year is to calculate multiple choice an advertising-to-sales promotion ratio. a promotion-to-expenses ratio. a break-even point. roi. a promotion-to-sales ratio.

Respuesta :

DevanshChh DevanshChh

15-12-2022

In order to evaluate the results of promotional expenditures, we need to consider the advertising-to-sales promotion ratio.

What is advertising-to-sales promotion ratio?

By dividing overall advertising costs by sales revenue, the Advertising to Sales is determined. The advertising-to-sales ratio is intended to demonstrate if and to what extent a company's investment in an advertising campaign contributed to new sales. Results from one industry to another can be very different. Therefore, it is important to compare the figure to others in the same sector or business while computing it. A high advertising-to-sales ratio suggests that marketing costs were excessive in comparison to the amount of sales revenue realized; this could imply that the campaign was unsuccessful. A low ratio means that, in relation to the cost of advertising, the advertising campaign produced significant sales. As always, a number of variables could have an impact on a given sale's performance.

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