Briefly Discuss How Marketers Measure Return on Marketing Investment

question 91

Essay

Briefly discuss how marketers measure return on marketing investment. Explain why this figure may not be sufficient to judge marketing's effectiveness.

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Definitions:

Cash Received

The amount of money taken in by a business during a particular period, including transactions in cash and equivalents.

Calendar Year

A one-year period that begins on January 1 and ends on December 31, used for most general and financial purposes.

Fiscal Year

A 12-month period that a company or government uses for accounting purposes and preparing financial statements.

Cash Basis

An accounting method where revenues and expenses are recorded when they are actually received or paid, not when they are incurred.