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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.


Definitions:

Equilibrium Price

The equilibrium price where goods supplied and goods demanded are in balance.

Price Floor

A government- or authority-imposed minimum price on goods or services, below which they cannot be sold, usually set to prevent market prices from falling too low.

Shortage

A scenario where the market demand for a service or product surpasses its available supply.

Surplus

An amount of something left over when requirements have been met; an excess of production or supply.

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