Abstract
The best practice, key indicator of marketing performance is widely claimed to be Return on Investment (ROI). This paper takes issue both with ROI and the relative level of attention given to marketing efficiency. It argues that achieving integrated marketing and corporate goals is far more important, namely marketing effectiveness. The aim of marketing is the sourcing and harvesting of cash flow the cash flow which is the lifeblood of the business. The intangible asset, brand equity, is the store of created demand not yet converted into sales and needs to be taken into account. Thus marketing differs from other types of expenditure and should be treated accordingly.
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Ambler, T. How important is marketing efficiency?. Thexis 25, 4–7 (2008). https://doi.org/10.1007/s11621-008-0017-y
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DOI: https://doi.org/10.1007/s11621-008-0017-y