You are the senior financial analyst supporting the marketing department in your company, and head of marketing has asked you to come up with one performance metric that can be used to evaluate how effective each marketing campaign is in terms of contribution to the firm's profits. It should be a metric that can be easily used to compare different marketing campaign against each other.In response, you propose using:
A)A metric that takes the total new sales dollars generated by a campaign and divides it by the total office expense of the campaign.
B)A metric that takes the total new sales dollars generated by a campaign and divides it by the total fixed cost of the campaign.
C)A metric that takes the total new sales dollars generated by a campaign and divides it by the total variable cost of the campaign.
D)A metric that takes the total new sales dollars generated by a campaign and divides it by the total supplies expense for the campaign.
E)A metric that takes the total new sales dollars generated by a campaign and divides it by the total cost of the campaign.

Question

​You are the senior financial analyst supporting the marketing department in your company, and head of marketing has asked you to come up with one performance metric that can be used to evaluate how effective each marketing campaign is in terms of contribution to the firm's profits. It should be a metric that can be easily used to compare different marketing campaign against each other.In response, you propose using:
A)A metric that takes the total new sales dollars generated by a campaign and divides it by the total office expense of the campaign.
B)A metric that takes the total new sales dollars generated by a campaign and divides it by the total fixed cost of the campaign.
C)A metric that takes the total new sales dollars generated by a campaign and divides it by the total variable cost of the campaign.
D)A metric that takes the total new sales dollars generated by a campaign and divides it by the total supplies expense for the campaign.
E)A metric that takes the total new sales dollars generated by a campaign and divides it by the total cost of the campaign.

Quizplus · Accepted Answer

The most effective metric to evaluate the contribution of a marketing campaign to the firm's profits is the return on investment (ROI) which is calculated by dividing the total new sales generated by a campaign by the total cost of the campaign. This takes into account all costs, fixed and variable, and gives a clear understanding of how much profit is generated for each dollar spent on a campaign. Therefore, option E is the best choice for this scenario.

​You Are the Senior Financial Analyst Supporting the Marketing Department

You Are the Senior Financial Analyst Supporting the Marketing Department