Every business needs to advertise to sell its products and services. But how can companies know if their marketing campaigns are effective? After all, there are many factors that can influence sales, including brand awareness, seasonal trends, and regional preferences.
One way to measure the effectiveness of a marketing campaign is to track the return on investment (ROI). ROI is calculated by dividing the total revenue generated by the campaign by the total investment in the campaign. If the ROI is positive, then the campaign is considered to be successful.
However, calculating ROI can be challenging, especially when there are multiple factors that could be influencing sales. For example, if a company can sell 100 units due to the strength of its brand and its popularity but sells 120 units as a result of significant marketing expenditures, how will the business prove that these 20 units came via marketing? A seasonal trend, such as the holiday season or a regional festival, may cause a mass purchase craze. Alternately, consumers may go above and beyond to promote their own interests by displaying products in front of customers, which increases sales. So generally, if we can claim that sales of 5 units rose as a result of marketing and that the profit from it covered the investment, we are obtaining a positive ROI, and then it is a success.
The subject of marketing channels is now at hand. Traditional methods like TV, radio, and news channels can be used, as well as some modern marketing techniques like Twitter, Facebook, Instagram, and YouTube ads. During the holiday season, billboards and banners may be used. There may also be leaflets in certain areas. The benefits of each marketing channel vary depending on the place and the season.
It's important to mention the season and keep the product category in mind. PepsiCo and Asian paint are two examples. More people buy PepsiCo products during the local festival season than they do throughout the entire year, and adding more marketing strategies to the mix can fuel this trend. But if Asian Paint begins to sell it during Durga Puja, it will be completely useless. If Asian Paint must seize this season's potential, they must have started their marketing campaigns at least two to three months prior. For example, an excellent day to promote this with a discount of a certain percentage for Indians would be August 15th.
All of these possibilities, which we might view as restrictions, can be used to predict future marketing strategies in order to maximize ROI. However, there are instances in which merging two marketing channels might result in success. As an illustration, Asian Paint sent emails to the consumer with their offer, but there was always a potential that they might not get them. In accordance with your strategy, you send an SMS two days before the offer expires, and the customer responds to it. Additionally, you might consider simultaneously launching the same campaign on radio and television. After that, you must decide whether a joint or solo launch is more fruitful.
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