To Be or not to be: that’s the ROI of marketing
To be, or not to be: that is the question:
Whether ’tis nobler in the mind to suffer
The slings and arrows of outrageous fortune,
Or to take arms against a sea of troubles,
And by opposing end them? To die: to sleep;Hamlet, by W.Shakespeare
To invest or not to invest: that is the question that many companies ask themselves when facing a marketing decision. The answer seems to be easier to be pursued hopefully in a better way than Hamlet’s; we are talking about the ROIM (return on investment of marketing). Your company should invest if ROIM is positive, your company should invest in those campaigns or marketing policies that produce the maximum ROI.
Operational Research, the magic toolbox, can assist in this matter by assessing which are the effects of all four macro-variables of marketing-mix (i.e. product, price, promotion and place) and their realisations (i.e. perceived quality, price premium, PR expenditure, or number of distribution channels) on sales. Once you are aware of the relationship between marketing policies, their cost, and generated revenue, your company will be able to make an informed decision and optimise your limited (and I bet you, declining) marketing resources.