10. Marketing And Finance


Key concepts covered in this chapter:

Net Profit and Return on Sales (ROS)

Return on Investment (ROI)

Economic Profit (aka, EVA®)

Project Metrics: Payback, NPV, IRR

Return on Marketing Investment

As marketers progress in their careers, it becomes increasingly necessary to coordinate their plans with other functional areas. Sales forecasts, budgeting, and estimating returns from proposed marketing initiatives are often the focus of discussions between marketing and finance. For marketers with little exposure to basic finance metrics, a good starting point is to gain a deeper understanding of “rate of return.” “Return” is generally associated with profit, or at least positive cash flow. “Return” also implies ...

Get The Definitive Guide to Marketing Analytics and Metrics (Collection) now with the O’Reilly learning platform.

O’Reilly members experience live online training, plus books, videos, and digital content from nearly 200 publishers.