Discuss the importance of measuring and managing marketing return on investment?

Managerial Accounting
15th Edition
ISBN:9781337912020
Author:Carl Warren, Ph.d. Cma William B. Tayler
Publisher:Carl Warren, Ph.d. Cma William B. Tayler
Chapter10: Evaluating Decentralized Operations
Section: Chapter Questions
Problem 4DQ: What is the major shortcoming of using operating income as a performance measure for investment...
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Discuss the importance of measuring and managing marketing return on investment?

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I. Meaning

Marketing return on investment is refer as the return on investment generate from marketing strategies. It is measured as the amount received subtracted from initial investment amount which is used as an indicator for marketing tactics. It is used to derive success of marketing efforts which deals with business goals such as increasing sales, obtaining leads and growth in marketing tactics.

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