Thesis work paper The Development to Marketing Ratio

The Development to Marketing Ratio
Typical industry benchmarks for sales and marketing are that for every $1 dollar spent on Research and Development, $5 to $10 dollars will have to be spent on sales and marketing (Davidson, 2001). As such the cost of delaying a software product rises quite considerably, and eats in to the firms cash flow. The implied costs behind the “development to marketing ratio”, is part of the reason why turnarounds can be so difficult.