Urban outfitters budgets - Essay Example

URBAN OUTFITTERS BUDGETS Urban Outfitters Inc. has a marketing department which aggressively promotes theproducts. The company allocates a certain amount yearly to support the marketing services. For the year starting January 2012, the company used 575,811 in the selling and other administrative purposes. In 2011, it used 522,417 while in 2010 used 447,169. The amount used in marketing and other administrative purposes rise each year. In the coming year, the company will spend about 630,900 which are more than the previous years.

The company has expanded the market. Growth and expansion of the market will lead to application of new marketing strategies and employment of more workers, which will increase the wages and administrative expenses (Smith 2010). The table below represents the amount of money spent in marketing and prediction of the expected expenditure for next year. Product Previous (in $)Expected (Prediction)Raw Material 130,000150,000Lunch 50,00055,000Communication 40,00045,000Transport70,00080,000Internet Services 20,00030,000Total 310,000360,000In marketing, control and evaluation is crucial because Urban Outfitters determines the performance and effectiveness of marketing operations.

In measuring the performance of marketing information, control and evaluation provides useful information. Evaluation and control program in the marketing department provides the manager with output of the services and products. Evaluation and control can also help the company to know where to make improvement and the areas it has success. Through evaluation and control the business takes into account external conditions relating to marketing programs like customer feedback. The feedbacks help in determining employee performance.

Through control and evaluation Urban Outfitters will be able to focus in all marketing areas (Smith 2010).BibliographyAntony Smith, 2010. Marketing Strategies. Routledge: New York.AppendixUrban Outfitters Inc. (URBN)Income StatementPeriod EndingJan 30, 2012Jan 30, 2011Jan 30, 2010Total Revenue 2,473,801   2,274,102   1,937,815   Cost of Revenue1,613,265  1,337,482  1,151,670  Gross Profit 860,536   936,620   786,145   Operating ExpensesResearch Development-  -  -  Selling General and Administrative575,811  522,417  447,161  Non Recurring-  -  -  Others-  -  -  Total Operating Expenses-  -  -  Operating Income or Loss 284,725   414,203   338,984   Income from Continuing OperationsTotal Other Income/Expenses Net4,106  3,005  5,422  Earnings Before Interest And Taxes288,831  417,208  344,406  Interest Expense-  -  -  Income Before Tax288,831  417,208  344,406  Income Tax Expense103,580  144,250  124,513  Minority Interest-  -  -  Net Income From Continuing Ops185,251  272,958  219,893  Non-recurring EventsDiscontinued Operations-  -  -  Extraordinary Items-  -  -  Effect Of Accounting Changes-  -  -  Other Items-  -  -  Net Income 185,251   272,958   219,893   Preferred Stock And Other Adjustments-  -  -  Net Income Applicable To Common Shares 185,251   272,958   219,893   Currency in USD