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Guide to Roi

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Guide to Calculating Your Marketing ROI

Dear Fellow Marketing Professional, For all marketers, accountability ranks as job number 1. For some time now, the trend within marketing and promotion has been one of channel fragmentation – a trend that will continue as new avenues and platforms are established and adopted. Assessing current and potential opportunities means properly evaluating the impact to a company’s bottom line. In short, calculating the return on investment (ROI) for every marketing expenditure to ensure that you’re making informed decisions. Prominent Placement’s goal with this guide is to help organizations objectively assess their marketing opportunities and expenditures so they can effectively align activities with results. The basic premise lies in properly calculating acquisition costs and ROI so that different channels can be directly compared in terms of efficiency and effectiveness. Prominent Placement has created a hypothetical scenario to illustrate how this guide can be used in assessing an organization’s marketing expenditures. We have also provided blank worksheets at the end for your convenience. We hope you find this guide both useful and valuable – we’re interested in your feedback, so let us know your thoughts!

Best wishes, The Prominent Placement Team

©2001-2006 Prominent Placement, Inc. www.prominentplacement.com 404-373-9727

6 Steps to Calculating Your Marketing ROI
Please note: for the sake of simplicity, figures within the hypothetical scenario below are rounded throughout.

Scenario: XYZ Company markets and sells a syndicated industry report to a business audience. The company’s annual revenue is $4,000,000. XYZ Company markets itself through various channels, currently spending an equal $42,000 amount within each channel. The company is exploring search marketing as a new channel opportunity and wishes to assess

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