While forecasting financials for a company, what typically happens to marketing expenses as a % of revenue as the company's product gets good feedback



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While forecasting financials for a company, what typically happens to marketing expenses as a % of revenue as the company's product gets good feedback and customers return?
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Marketing expense a % of revenue increases
Marketing expense a % of revenue stays the same
Marketing expense a % of revenue decreases
No marketing is done

1 Answer(s)


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When a company gets good customer feedback, then word of mouth spreads and the company gets more customers without spending any money on marketing. Examples are companies like Google, Flipkart etc.

Due to this marketing expenses will decrease.