Whenever activities are evaluated the normal frame work would be to first break

Whenever activities are evaluated the normal frame

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Whenever activities are evaluated the normal frame work would be to first break down activities to the basic tactical level. 31
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TERRITORY AND PRODUCT LEVEL PROFITABILITY An ideal dashboard should show the progress of marketing, help assess productive areas, and help in the decision making. In addition, dashboards provide an indication on the value of marketing and also help to align marketing with the business Thus you will observe that at an operational level, the marketing team has to ensure that the product which the organisation has developed for meeting consumer requirements, get marketed, sold and distributed effectively. When we use the word 'effectively' it means that not only should the consumer get their requirement to their satisfaction but at the same time the organisation also earns its profits. Profits for an organisation primarily come out from the differential between the selling price, which can be quite different from the consumer’s purchase price because channel commission and government taxation can erode a substantial part of this surplus. However even from the realization which the company gets when it sells its product if we deduct the cost of manufacturing, which we term the gross profit, the source has further to account for selling, distribution, marketing and administrative expenses. We are now going to set up evaluation parameters for the effectiveness of the sales and marketing efforts. These we shall be doing based on the lessons learnt from the previous chapter. We shall do this by way of a case. Darham Pharmaceuticals are a medicine company who achieved an All India sales of Rs. 174 Cr per annum, in a particular year, which we are going to review. The following average monthly sales figures have been obtained zone wise: Tactical level Functions and Analyzes performance at project or individuals activity level as they relate to the first two 32
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TERRITORY AND PRODUCT LEVEL PROFITABILITY Table no: 4.1 From the above you will observe that the organization operates through 4 zones, and have 3 product groups viz. Darcold, which is an anti cold and cough preparation, in the OTC (over the counter) category, Darmet, which is an anti diarrheal formulation, and Darclox, which is an antibiotic. In each product group there are 2 items, making a total of 6 product items. In case of pharmaceutical products OTC items can be promoted through advertising and other types of mass media. For non OTC, ethical products, the promotion has principally to be done through medical detailing by Medical Service Representatives. In respect of the above company we have the following additional data. The rate of gross margins per product items are: Products N Zone E Zone W Zone S Zone Qty units Value Rs. lacs Qty units Value Rs.
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