PART2: Calculate Sales Target based on Cost-to-Sales Goal and Known Expense
Continuing with our three part series on industrial marketing budgets, we now take a look at creating realistic sales targets to justify marketing expenses. These targets are a crucial part of a marketing budget, giving your organization tangible expectations for the marketing investment.
In PART1 we discussed calculating and ranking all of your past marketing items by their cost-to-sales ratios. You most likely have activities which range from 5% to 25%, cost-to-sales, or more depending on your industry and the marketing avenues you participate in.
Moving forward, you will want to create realistic targets for your sales team based on your goals for each item. To find that targeted sales value, you will have to do these calculations in reverse.