Return on Marketing Investment (ROMI) is a tool which will helps mar-keters to understand marketing programs, plans and manage its bud-geting, communicates the aim and the intention from marketing programs, manage priority, executes and brings off it, monitors and measures it. and while it is succsesful, it is expected will gives increasing gain (money) and measures that marketing program to more succesful.
ROMI provides knowledge to know when marketers will invest more or even reduce investment. ROMI shows the level of success of marketing activities carried out and will make marketers more successful, which will be able to change the company’s finances better.
The ROMI calculation formula:
- Expected Return: Income or performance that has been generated from marketing activities that have been carried out.
- Cost: Costs for marketing activities that have been incurred
According to Powell (2002: 7), how to determine marketing that can be con-sidered to have a good return is to know the minimum limit (Hurdle Rate).
The Hurdle Rate calculation formula:
- Hurdle Rate < ROMI: Then the marketing program has a good return (Recomended Program).
Sample data DOWNLOAD
Next, open Tableau and follow step by step,
Marketing Activity Budget and Target
Cost and Income of Marketing Activities
Marketing programs that have good returns:
- Endorsement Presenter
- Kerjasama dengan merk lain
- Promo diskon
Marketing programs that need to be evaluated:
- Event Sponsorship
- Proyek Kolaborasi Artis
Powell. Guy R., (2002). Return on Marketing Invesment. US of America:RPI Press.
Afandy. Khairil, Bachri. Syamsul., (2013), Analisis Return on Marketing Invesment (ROMI) Pada Distro FLO, Fakultas Ekonomi dan Bisnis, Universitas Bengkulu.
“Good marketers see consumers as complete human beings with all the dimensions real people have.” — Jonah Sachs