As a company it is important to produce products what consumers really want to buy. These products should fit to the consumer needs and wishes, so the products should be reasonable priced, the quality should be important and off course the functionalities and the design of the product are important. However, when a company produces a product what really fits to the needs of the consumer it is important to be known as a company. Therefore, marketing communication is really important. There are different types of marketing communication, like TV advertising, promotional leaflets, exhibitions, a website etc.. Almost every company uses marketing communication, what costs a reasonable amount of money. However, what is the specific revenue of these activities? One of the main difficulties of marketing communication is the calculation of the return on investment (ROI) of the activity. What will be the profit of an activity after deduction of the full costs?
There exist several models to calculate these figures, however with these models it is still not easy. Which consumer buys due to the activity or would he bought the product without the activity too? This is what it makes difficult to calculate the ROI of an activity. You have to be aware of the fact that the type of marketing communication influences the accountability of it.
Marketing communication wherefore it is reasonable easy to calculate the ROI is by example when vouchers are used. Then it is clear which consumers bought the product due to the marketing communication activity.
In the contrary, exhibitions costs a lot of money, and it is not clear which consumers bought the product due to the visit of the exhibition. Then it is really difficult to calculate the ROI of the activity.
So, marketing communication is a really important tool for a company and needs to be used. However, it is not easy to calculate the ROI what makes it a sort of a controlled gamble and therefore you have to be aware of the ROI all the time (logical reasoning).
There exist several models to calculate these figures, however with these models it is still not easy. Which consumer buys due to the activity or would he bought the product without the activity too? This is what it makes difficult to calculate the ROI of an activity. You have to be aware of the fact that the type of marketing communication influences the accountability of it.
Marketing communication wherefore it is reasonable easy to calculate the ROI is by example when vouchers are used. Then it is clear which consumers bought the product due to the marketing communication activity.
In the contrary, exhibitions costs a lot of money, and it is not clear which consumers bought the product due to the visit of the exhibition. Then it is really difficult to calculate the ROI of the activity.
So, marketing communication is a really important tool for a company and needs to be used. However, it is not easy to calculate the ROI what makes it a sort of a controlled gamble and therefore you have to be aware of the ROI all the time (logical reasoning).
What factors are important for a company to consider when producing products that consumers want to buy? Greeting : Telkom University
BeantwoordenVerwijderen