Custom «Evaluating Performance» Essay Paper Sample

Evaluating Performance

The evaluation process of Dollar Tree Inc will focus on the product and process elements entailed during the implementation of the marketing plan. In essence, the marketing plan of Dollar Tree Inc can be evaluated based on its advertising efficiency, sales-promotion efficiency, and sales performance.

Criteria for Choosing the Marketing Metrics

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Advertising Efficiency

The decision to use advertising efficiency as a marketing measure was primarily influenced by the fact that Dollar Tree initiated several advertisement approaches; hence, it will be important to establish their level of effectiveness. It will be necessary to establish the possible number of customer inquiries that were generated from the advertisement approaches, for example, how many extra customers visited the company’s website after implementation of their online marketing strategy. If the customers surpassed a certain sales percentage to recover the advertisement cost, then it implies that the advertisement strategy was effective. It will also be necessary to establish the cost per that was incurred per inquiry. Were the costs high, medium, or low? Additionally, by measuring the advertisement efficiency, it will be possible to establish the impact the advertisemen strategy had on the target market and customers.

Sales Promotion Efficiency

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The decision to use the sales promotion efficiency was primarily driven by the need to establish the performance of promotion strategies that were implemented. Similar to the advertisement efficiency, it will be necessary to determine the number of new customer inquiries that were generated per for the promotion strategies. The evaluation will also establish whether the expenditure used by Dollar Tree Inc was effective in achieving the company’s sales targets. For example, it will be interesting to know the percentage increase in sales and compare this against the target that was set at the beginning of the sale promotion. A good example of a sales promotion strategy used by Dollar Tree Inc is the implementation of a 6% commission for purchases going above $2,501 up to a maximum of $5,000 (Dollar Tree Inc, 2012). Hence, it will be necessary to establish whether the commission offered increased the markup in sales.

Sales performance

The decision to use sales performance was influenced by the need to establish the price and volume variance produced by the implementation of the marketing plan. First, price variance will enable Dollar Tree Inc to establissh whether there were major changes in the prices, for example, was there a deliberate measure to further decrease the prices past the planned sales price or was the demand for the products high such that it surpassed the initial planned price. This will enable the company to establish whether there were any significant gains from the price changes that were implemented. Secondly, volume variance will enable Dollar Tree to establish whether the planned sales volumes were achieved. For example, was there a fall in terms of volume sales or was there an increment? More specifically, in the case of Dollar Tree Inc, it will be interesting to determine whether the different product portfolios offered by the company achieved their target sales volumes. In the event there is any drop in the sales volumes, then this will imply that the sales approach was not effective.

Individuals Accountable for Performance of the Marketing Plan

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The individual who will be held accountable for the performance of the marketing plan is the head of the sales team. The head of the sales team is the one responsible for setting the targets, which influence the choice of marketing and sales promotion strategies adopted. Hence, when the targets are set to high, it implies that the marketing plan developed was over ambitious. 

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