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Marketing Costs

Part 1. Marketing Strategy

  1. Mukesh Bhargava

Published Online: 15 DEC 2010

DOI: 10.1002/9781444316568.wiem01037

Wiley International Encyclopedia of Marketing

Wiley International Encyclopedia of Marketing

How to Cite

Bhargava, M. 2010. Marketing Costs. Wiley International Encyclopedia of Marketing. 1.

Author Information

  1. Oakland University, Rochester, MI, USA

Publication History

  1. Published Online: 15 DEC 2010


Recently, there has been an increasing pressure on marketers to rein in costs. Marketing costs are budgeted as the cost of “selling” the goods, but include decisions that impact all the other marketing mix elements. Discussion of marketing costs includes estimating the levels and amounts (in a business plan) as well as appropriate cost analysis for setting prices, channel decisions, and so on. Strategically, cost advantages can lead to a viable competitive advantage, and is one of the more common strategies. It is a common misperception that the marketing costs are too high and often not justified. Marketing costs are treated as an expense and not as an investment. Tracing productivity of these expenses to financial outcomes continues because marketing costs produce both short and long term, direct as well as indirect benefits. What compounds the problem is that reliable cost data is not available for research. On the positive side, more fine-grained data and the ability to set up experiments will allow managers to develop their own guidelines for the best returns on their investments.


  • cost analysis;
  • tactical use;
  • strategic use;
  • returns on investments