December 2017
Intermediate to advanced
390 pages
7h 51m
English
Content preview from Measuring MarketingBecome an O’Reilly member and get unlimited access to this title plus top books and audiobooks from O’Reilly and nearly 200 top publishers, thousands of courses curated by job role, 150+ live events each month,
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Chapter 14 Program/Nonprogram Ratio
Measurement Need
Organizations must understand how efficient their marketing is given the investments being made, serving as an indicator that the amount invested is being used properly applied to the intended marketing program designed to yield the desired outcomes.
Solutioni
The program/nonprogram ratio (PNPR) compares the amount of money spent on marketing activities to the amount spent on the overhead and administrative inputs needed to support those activities. The result is a measure of efficiency, with higher ratios (closer to 1) indicating a more efficient operation.
Where
PNPR = program/nonprogram ratio
Pt = marketing program dollar spending in time period t
TSt = total ...
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