return on investment

Examples of return on investment in the following topics:

• Return on Investment

  • Return on investment is one way of considering profits in relation to the capital invested.
  • The purpose of the return on investment metric is to measure per period rates of return on dollars invested in an economic entity.
  • Return on investment is often compared to expected (or required) rates of return on dollars invested.
  • This chart shows the rate of return on investments after training teachers.
  • Explain why pricing objectives focus on delivering a return on investment (ROI)

• Marketing Performance Metrics

  • Moreover, industry experts have developed various metrics – notably, return on marketing investment (ROMI) – to help marketers measure the performance of activities across the marketing mix.
  • Return on marketing investment is one of the most difficult organizational aspects to measure.
  • ROMI is based on the calculation:
  • Marketing return on investment (ROI) is another term that refers to measuring company sales and profits.
  • Author Rex Briggs also introduced the term "ROMO" for return-on-marketing-objective.

• Types of Buying Decisions

  • Buying decisions are based on buyer behavior.
  • Consumers will often buy on emotion or impulse whereas businesses will buy based on need.
  • Because consumers often buy on emotion, ads can affect the buying decision.
  • Businesses are also worried about price and return on investment.
  • This is why companies can influence what type of car a person will buy, but not when they will buy one.

• Methods for Evaluating Marketing Performance

  • Marketing Performance Measurement, Marketing Performance Management, Marketing Return on Investment (ROI), Return on Marketing Investment (ROMI), and Accountable Marketing are all metrics that companies use to connect marketing performance to the financial performance of the organization.
  • The methods for evaluating the performance of, and responses to, these materials range from simple calculations measuring return on investment, to tallying the number of visits to a website.
  • Since marketing campaigns are typically integrated across all channels (e.g., print, email, and social media), these channels are measured together to understand the overall effect on target markets.

• The Importance of Evaluating Marketing Performance

  • As marketers face more and more pressure to show a return on investment (ROI) on their activities, marketing performance metrics help measure the degree to which marketing spending contributes to profits.

• Measuring the Market

  • New products often enter the marketplace subtly, without much fanfare or a large investment commitment until the potential marketplace, the demand can be estimated to a point where a high level of investment, time, money and other resources, is made.
  • Suppliers measured the product's viability; need, cost, features were compared to those of existing products and before the "green light" was given all data was analyzed with regards to the return on investment.
  • They must measure to see if the commitment is worth the investment of resources, time, effort, dollars and energy.
  • So they must put metrics in place to measure campaigns, and if at all possible, measure their impact on the target market, be it Cost Per Acquisition, Cost per Lead or tangible changes in customer perception.
  • The CVM uses data from customer interaction, on-site interviews, customer service data, sales force reports and all the other types of input and observations about product benefits and the bottom line.

• Service Marketing Management and Metrics

  • Marketing management is a business discipline which is focused on the practical application of marketing techniques and the management of a firm's marketing resources and activities.
  • After the firm's strategic objectives have been identified, the target market selected, and the desired positioning for the company, product, service or brand has been determined, marketing managers focus on how to best implement the chosen strategy.
  • Metrics enable marketing professionals to justify budgets based on returns and to drive organizational growth and innovation.
  • Other elements of measurement include net sales billed, number of product or design registrations, brand surveys to measure brand awareness, the return on the investment, and website hits.

• BCG Matrix

  • The purpose of the BCG Matrix is to determine investment priorities for a company with a portfolio of products/BUs.
  • The purpose of the BCG Matrix is to determine investment priorities for a company with a portfolio of products/BUs.
  • There is no room for growth so no more funds should be invested in the product or product/BU.
  • It is consuming vast amounts of financing at this point and creating a low rate of return.
  • This is a product line or BU a company should focus its efforts on in the hopes that it will become a cash cow before the end of its life cycle.

• Stages of Business Buying

  • An organization can decide to use one supplier, called sole sourcing.
  • Buying one can of soft drink involves little money, and thus little risk.
  • Usually, the investment sums are much higher.
  • Less risky investments yield less returns.
  • The riskier the investment, the higher the yield.

• Market Share

  • Increasing market share is one of the most important objectives of business.
  • Pricing strategy is one of the tools that is significant in creating and sustaining market share.
  • New brands not only require lower prices to penetrate the target market, but they typically require more investment as well.
  • Advertising improved quality on products is another way market share can be affected.
  • In 2009, Hyundai released a new PR campaign where people who bought new Hyundai cars could return them if they lost their jobs within a year of buying the car.