Percentage of total annual marketing budget allocated to allocated overhead

This measure calculates the percentage of total annual marketing budget allocated to "allocated overhead." 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. Overhead costs refer to those that an organization cannot identify as direct costs of performing a process; these include occupancy, facilities, utilities, and maintenance, etc. This measure is part of a set of Supplemental Information measures that help companies evaluate additional variables not covered elsewhere for the "establish marketing budgets" process.

Benchmark Data

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Measure Category:
Supplemental Information
Measure Id:
105844
Total Sample Size:
500 All Companies
Performers:
25th
Median
75th
Key Performance
Indicator:
No

Compute this Measure

Units for this measure are percent.

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Percentage of marketing budget allocated to allocated overhead

Key Terms

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Supplemental Information

Supplemental information is data that APQC determines is relevant to decision support for a specific process, but does not fit into the other measure categories such as cost effectiveness, cycle time, or staff productivity.

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.