If a Marketer Wants to Directly Compare the Effectiveness of an Event

question 9

Multiple Choice

If a marketer wants to directly compare the effectiveness of an event sponsorship with that of traditional advertising efforts, he or she should

• A) calculate the number of exposures to the brand at the event and from coverage of the event and decided whether it is comparatively cost effective.
• B) compare the money spend sponsoring the event with the amount needed to run traditional advertising over the same time period.
• C) compare sales figures in the weeks before and after the event with sales figures preceding and following traditional advertising efforts.
• D) compare brand-preference figures in the weeks before and after the event with brand-preference figures preceding and following traditional advertising efforts.

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Definitions:

Average Accounting Return

A financial ratio that calculates the average annual income from an investment compared to its initial cost.

Required Rate Of Return

The minimum return an investor expects to receive on an investment, taking into account its risk level.

Cash Flows

The net amount of cash and cash-equivalents moving into and out of a business.

Today's Dollars

Today's Dollars refers to the value of money in terms of the present day's purchasing power, often used to account for inflation in financial calculations.