ABSTRACT
Introduction 367 Defining marketing effectiveness and return on investment 367 The value of evaluation 370 The process of evaluation 370 Taking the long-term view 374 Concerns and challenges associated with measuring IMC effectiveness
and return on investment (ROI) 374 Summary 378 Review questions 378 Recommended reading 379 Case study 16.1: Californication 379 Case study 16.2: Measuring Mastercard’s ROI . . . priceless? 387 Notes 390
After studying this chapter, you will be able to:
• Understand the reasons why organizations increasingly seek to measure the impact that marketing activity has upon their overall business
• Recognize the benefits of developing and managing systems to measure and analyse the effect of marketing activity
• Appreciate the limitations and challenges associated with the measurement and analysis of IMC activity
• Recognize and understand the different methods of measuring effectiveness and return on investment (ROI)
Introduction
Whatever the state of the business environment, getting value for money, or at least
covering costs, should always be a priority for marketing professionals. However in order
to do this it is important to understand what managers are actually getting for their money
but also how to measure its value. Not only does it make good business sense, but it helps
managers identify the most effective communication vehicles and strategies for future
activity. In economically strident times, it becomes increasingly imperative that organiza -
tions employ their resources as prudently as possible to ensure that they get the maximum
return for every penny spent.
