MnM Training and Coaching to Sales Ratio - MnM... · Sales Trainer and Coach with expertise covering cross-department solutions in sectors like Real Estate, IT & Telecom, Media, Advertising

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MnM Training and CoachingPANA - Advertising to Sales Ratio

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About

Mihai Petrut – Co-Founder

Sales Trainer and Coach with expertise covering cross-department solutions in sectors

like Real Estate, IT & Telecom, Media, Advertising and Finance.

Bachelor Degree in Marketing and Master Degree in Business Administration

Mentored aspiring professionals in the art of sales, providing support and guidance in

over 60 countries

Full of positive energy and never settles for mediocracy.

Maarten Pennings – Co-Founder

All-round professional in international project management

Bachelor Degree in Hospitality Management and Master Degree in

Tourism Destination Management.

Extensive experience in managing, training and coaching sales teams on four

continents.

Living in Taguig with wife Blanche and baby boy Theodore George.


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About

With over 26 years of experience stretched over 5 continents and more

than 33 countries, MnM Training has been helping organizations and

individuals to overcome their challenges, harness and nurture potential

and improve overall sales performance.

We will analyse together where you are today, where you want to be

tomorrow and we guide you through the process of reaching your target.

We maximize your potential and

turn your strengths into a “lethal weapon” !


MnM Training and CoachingPANA - Advertising to Sales Ratio


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Sales Marketing

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Sales focuses on

Short term

Marketing takes a

Long view

Both sides see

each other

unnecessary

The Big Idea

What is the 'Advertising-To-Sales Ratio ?

Is a measurement of the effectiveness of an

advertising campaign calculated:

total advertising expenses

sales revenue

A high advertising-to-sales ratio indicates that high

advertising expenses resulted in low sales revenue; this

could mean the campaign was not successful. A low

ratio may indicate that the advertising campaign

generated sales.


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world's most valuable brand for the seventh straight year

$170 billion

So, how did Jobs do it?

Steve Jobs was a genius marketer


Calculating the influence of

marketing on a company’s growth is

not always black and white.

There are many factors that

combine to create a successful and

growing business.


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2 basic ways companies can calculate

their advertising budgets

Total dollar sales: $100,000,000

Straight percentage of sales at 10%: $10,000,000

Advertising budget: $10,000,000

Cost per unit to manufacture: $4

Unit cost allocated to advertising: $0.4

Forecast sales: 1,000,000 units

Advertising budget: $400,000

1

2


Is 10% the Magic Number?

According to a 2014 Gartner Research study:

“companies spent on average 10.2%

of their annual 2014 revenue on

overall marketing, with 50% of

companies planning to increase”


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According to a 2014 CMO survey published by

the American Marketing Association and Duke

University, companies with:

less than $25 million in revenue spent an

average of 11% on marketing

$25-$99 million in revenue spent an

average of 9% on marketing


©Quora© All Rights Reserved – Strictly Confidential

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Base your budget on industry norms:

Advertising Agencies: 0.3% of sales (the irony!)

Apparel and Accessory Stores: 4.5%

Beverages: 7.3%

Business Services: 0.4%

Cigarettes: 2.2%

Commercial Printing: 7.4%

Computer and Office Equipment: 0.7%

Dairy Products: 1.4%

Distilled Liquor: 15.6%

Drug Stores: 0.7%

Department Stores: 4.7%

Restaurants: 3.1%

Family Clothing Stores: 2%

Furniture Stores: 8.5%

Grocery Stores: 0.9%

Household Appliances: 2.4%

Life Insurance: 1.2%

Retail Stores: 3.7%

Software: 2.9%

Shoe Stores: 2.1 %

Watches: 9.3%

Wine: 3.6%

(Source: Advertising Ratios and Budgets, Schonfeld & Associates)


SaaS Companies


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Social Media Spenders


Tech companies


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Education Marketing in Manufacturing


https://saibooks.com/index.php?option=com_content&view=article&id=60&Itemid=61


https://saibooks.com/index.php?option=com_content&view=article&id=60&Itemid=61

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Why do advertising-to-sales (A/S) ratios vary among

industries and even among companies and brands in

the same industry?

1. Industry concentration- not a major determinant of variations in A/S ratios.

2. Profit rates on sales-This is considered a likely "powerful determinant" of A/S variations;

3. Market size-A/S ratios decline with increases in market size.

4. Market share-A/S ratios are lower for firms with large market shares.

5. Durable goods-Durables have lower A/S ratios than do nondurables.

6. Amount of purchase ($)-Products with higher "tickets" have lower A/S ratios.

7. Frequency of consumer purchase-A negative relationship is reported, i.e., greater frequency is

associated with lower A/S ratios.

8. Number of brands-Larger numbers of brands in a market are associated with higher A/S ratios.

9. Ratio of new to old brands-Most studies show no significant relationship

10. Market growth-No statistically significant relationships.

11. Regional markets-Lower A/S ratios seem to be associated with regional markets.

Professor Paul Farris (University of

Virginia) and Mark Albion (Doctoral

Candidate, Harvard Business School


How do you improve your A/S ratio?


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Why Can’t Marketing and Sales Just Get Along?

Sales: my leads are poor or I am not getting enough support

from marketing

Marketing: we sent hundreds of leads, but you didn’t take the

time to go through them

Sales Client Marketing

Department Department© All Rights Reserved – Strictly Confidential

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Marketing

+

Sales

• Sales cycles are shorter

• Market-entry costs go down

• Cost of sales is lower

A/S Lower ! © All Rights Reserved – Strictly Confidential

Product designers learned years ago that they’d save

time and money if they consulted with their colleagues in

manufacturing rather than just throwing new designs over

the wall.

The two functions realized it wasn’t enough to just

coexist—not when they could work together to create value

for the company and for customers.

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What was the breakthrough of their success?


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6 tips for improved communication

1.Make sure sales and marketing meet frequently

2.Build multiple relationships not just at top level

3.Mix marketing and sales desk together

4. Increase the platforms for feedback

5.Agree on terminology

6.Base communication on facts and data


Conclusion: What Is A Good Marketing ROI?

When you spend

$1 on marketing,

how much should

you expect in

return?

$5 $10© All Rights Reserved – Strictly Confidential

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How?

1.Set your target

2.Improve communication

3.Train your staff


Contact

+63 2 788 75 38

+63 999.301.8067

+63 999.974.1063

+31 6.1030.28.32

+40 723.113.214

[email protected]

www.mnm-training.com

Documents

MnM Training and Coaching to Sales Ratio - MnM... · Sales Trainer and Coach with expertise covering cross-department solutions in sectors like Real Estate, IT & Telecom, Media, Advertising