An organization’s total expenditure on marketing activities. This will typically include all promotional costs, including marketing communications like website development, advertising and public relations, as well as the costs of employing marketing staff. It is useful to distinguish between fixed marketing costs and variable marketing costs to account for the relative risks associated with alternative strategies.. That is, managers must recognize which marketing costs will hold steady, and which will change with sales. Generally, this classification will require a "line-item by line-item" review of the entire marketing budget.

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