DOI link for Traditional media
Traditional media book
This chapter examines both the benefits and the challenges faced by marketers. It discusses the relative value of the various methods used to analyse marketing effectiveness and return on investment and concludes with some recommendations as to how to formulate a basic business case. No doubt that an understanding of the relative effectiveness of business actions can yield huge benefits and is an important tool when seeking to achieve competitive success, marketing professionals encounter unique challenges in their endeavour to measure the value of their work. The state of the business environment, getting value for money, or at least covering costs, should always be a priority for marketing professionals. It is a common mistake that some Brand Managers and marketing executives use the terms 'marketing effectiveness' and 'return on investment' interchangeably. Return on investment is an accounting-based term that relates to the percentage profit achieved on the basis of a given amount of expenditure before taxes and other deductions.