Marketing budget per marketing FTE

This measure calculates the marketing budget per marketing full-time equivalent (FTE) employee. The budget for marketing is the amount an organization predicts it will expend to operate its marketing function. The marketing budget includes, among other things, IT costs required to operate the marketing organization; travel costs incurred by marketing organization; personnel cost for marketing employees; costs for promotional employees; and allocated overhead costs. This measure is part of a set of Cost Effectiveness measures that help companies understand all cost expenditures related to the process "establish marketing budgets."

Benchmark Data

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Measure Category:
Cost Effectiveness
Measure Id:
100859
Total Sample Size:
931 All Companies
Performers:
25th
Median
75th

Compute this Measure

Units for this measure are dollars. Lower values are better.

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Budget for marketing / Number of FTEs who perform the marketing function

Key Terms

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FTE - (full-time equivalent employee)

To calculate the number of full-time equivalents employed during the year for each respective process or activity, you must prorate the number of employees and the hours spent performing each process/activity. Assume that a full-time worker represents 40 hours per week. Provide the average number of full-time equivalents employed during the year for each respective process. Include full-time employees, part-time employees, and temporary workers hired during peak demand periods. Allocate only the portion of the employee's time that relates to or supports the activities identified for an applicable process. Prorate management and secretarial time by estimating the level of effort in support of each activity, by process.

For example, a part-time secretary in the finance department for XYZ, Inc. charges all of his time to finance department activities. He works 20 hours per week. The secretary splits his time evenly supporting employees working in the general accounting process and the financial reporting process. Thus, his time should be allocated by process. So, if he works throughout the year and supports these two processes, his time would be split evenly as:

20hrs/40hrs = .5FTE * 50% for general accounting = .25FTE for general accounting

20hrs/40hrs = .5FTE * 50% for financial reporting = .25FTE for financial reporting

Cost Effectiveness

Cost effectiveness measures are those in which two related variables, one of which is the cost and one of which is the related outcome related to the expenditure are used to determine a particular metric value.

Measure Scope

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Cross Industry (7.2.1)

  • 3.3.2.1 - Confirm marketing alignment to business strategy (10155) - Ensuring corroboration of the marketing strategy and the organizational strategy. Ensure the organization's marketing strategy/plan aligns with the overall business strategy. Fine-tune the marketing plan according to the organizational strategy.
  • 3.3.2.2 - Determine costs of marketing (10156) - Calculating the total cost of marketing the organization's portfolio of products/services. Calculate the total outlay needed for promoting, selling, and delivering the organization's products/services to customers. Account for all costs to acquire customers and sustain a relationship with them. Include the expenses needed for promotional actives, warehousing, transactional costs, and distribution of the organization's offering.
  • 3.3.2.3 - Create marketing budget (10157) - Estimating the outlay required for promoting, selling, and distributing the products/services of the organization. Add up the expenses of all activities necessitated in marketing, such as promotional campaigns, advertising, marketing communications, PR campaigns, employing skilled personnel, and office space.
  • 3.3.2.4 - Determine projected ROI for marketing investment (17683) - Estimating how much profit the company would generate for its expenses on marketing . Forecasted return on investment, used as a metric to gauge the efficiency of marketing, is beneficial in revising marketing budgets and adjusting costs to improve the overall yield.