In an environment where costs are escalating dramatically, but marketers are unable to pass these on to cash-strapped customers, containing marketing and distribution expenditure has become a key management tool. A Marketing Cost Analysis is used to evaluate whether such costs within a business are being properly managed, and to determine how further efficiencies can be achieved. Components which may be analysed include: distribution costs; cost of holding stock; related staff costs; the cost of extending credit; promotional and advertising expenditure, etc.

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