Question
Investment (ROMI) Veronica owns a luxury resort located on the island of Bora Bora, a 12-square-mile island in the western part of the Society Islands of French Polynesia. The resort is a major international tourist destination, famous for its aqua centric luxury accommodations, hospitality, and plentiful coconut trees Veronica was interested in determining the profit that her marketing campaigns are generating for her business, so she contacted a consulting firm in Los Angeles, CA, to help her. As a marketing graduate, you are selected to perform this task. You pack your bags and flew to Bora Bora Upon meeting with Veronica, you suggest that she might want to use Return on Marketing Investment (ROMI) to find out how much profit each marketing campaign is generating. ROMI is a metric used in marketing to measure the productivity of a promotional campaign. It is a subcategory of return on investment, as the expenses here are incurred on marketing You also comment that by focusing on ROMI Veronica can help her shareholders move away from the idea that marketing is an expense that can be deducted when the economy is weak. Instead, it is an investment that produces revenue order to calculate ROMI you ask Veronica to supply you with several figures, including the revenues before each campaign revenues after each campaign, and marketing campaign costs for television, social media, and website (see below) You explan hut revenues after campaign minus revenues before campaign would equal sales growth Then, the increase in sales would be used n he ormula below to obtain ROM
Explanation / Answer
1.
Hence, correct option is (a)
2.
Calculation of ROMI
Hence, correct option is (d)
3.
Calculation of net ROMI
Hence correct option is (c)
4.
Since net ROMI is highest in case of social media, hence social media campaign was the most successful campaign.
Hence, correct option is (a)
Kindly give a positive rating if you are satisfied with the solution. Feel free to ask if you have any doubt. Thanks
Television Social media Website Revenue before campaign 12,000 12,000 12,000 Revenue after campaign 16,000 30,000 18,000 Increase in revenue $4,000 $18,000 $6,000
