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CHAPTER 15 ANALYSIS OF SALES AND MARKETING COSTS I. MARKETING AUDIT A. Marketing Audit – a tool designed to evaluate the degree of integration of the entire marketing function with company operations in a systematic and comprehensive manner. B. Sales Force Audit 1. A sales force audit involves the same six factors measured by the marketing audit but is designed to evaluate selling strategy and to improve the overall effectiveness of the sales force. 2. The 80/20 principle is theory stating that 80 percent of a firm's sales comes from 20 percent of its customers. Also called the concentration principle; the majority of a company's sales (or profits) may result directly from a very small number of the company's accounts, products or price lines, or geographic area. C. Directing The Marketing Effort 1. The iceberg principle refers to the distorting effect that averaging, summarizing, and aggregating data can have in presenting the true sales or profit picture and underlying problems. II. NET SALES VOLUME ANALYSIS A. What Is Sales Analysis? 1. Sales Analysis – a detailed examination of a company's sales data, involving assimilating, classifying comparing, and drawing conclusions. 2. Accumulation of sales analysis information
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3. Uses of sales analysis a.
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This note was uploaded on 02/01/2012 for the course MGMT 405 taught by Professor Drucker during the Fall '97 term at Radford.

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