marketing expense-to-sales analysis

Marketing expense-to-sales analysis is a tool used in marketing control to evaluate how much a company spends to achieve its sales goals. This analysis compares marketing expenses to sales revenue, with companies typically establishing an acceptable range for this ratio. It's one of five tools used to monitor plan performance, alongside sales analysis, market-share analysis, financial analysis, and customer satisfaction measurement. While sales figures are generally harder to manipulate than earnings, the price-to-sales (P/S) ratio, which compares a company's stock price to its sales, is also used to assess a company's market presence. However, P/S ratios should be interpreted within industry norms and a company's growth stage, as sales alone do not guarantee value.12