Employing concept of ROMI
Return on Marketing Investment is the revenue acquired from the increased sales of the company that have resulted from the marketing done by the company. Viewing marketing as an investment will necessitate the urge to get returns from it. It is calculated as ROMI=Increased Revenue-market expense.
NB: Where the increased revenue is the amount of extra money received as a result of the advertising. It is calculated as, Revenue after Marketing-Revenue before Marketing.
Marketing should be viewed as an investment and money spent on it should be expected back. The first step would be to invest a considerable amount of money in marketing with an aim of improving the sales of Alta Moda. This will be done by first assessing the current sales of Alta Moda and the revenue generated from the same, we would then invest in marketing through advertising in the media and women magazines (Arnold 2010).
In the magazines, we would portray Alta Moda products as something the lady’s really need to have, we (as a marketing department under my leadership)would engage in roadside promotion which is meant to answer any concerns from the clients about the our products (Barro, 2008).
Data that should be collected
To calculate the ROMI we will need to collect certain pieces of information that will facilitate the computation. The first thing to do would be to have a record of how much revenue the company receives and what level of sales is made without the marketing(Increased Revenue). This is going to give us the sales baseline for the company.
We then need to have a very clear data and enough information from the budgeting carried out on how much we are likely to spend on the marketing of the Alta Moda products (Marketing expenses). Any incremental in the expenditure on the marketing and promotion activities should be recorded for the purposes of assessment on the success of the marketing (Arnold 2010).
Dashboard
The dashboard indicates the projection that as a marketing department we would be spending during the year in both promotion and advertising activities. The different months will have different expenditure. This shows that different periods will need different costs in the expenditure. As shown below:
Other executives in the company will follow the lead of the marketing department and assist in the promotion and advertising of the products as the success of the company will help all of the company.
Recommendations (Micro view)
Improving the sales for the store will need more of promotion hence the promotion activities in the dashboard. This is aimed at increasing the margin acquired from the marketing hence improving the return on investment (ROMI). Such ideas will also reduce on the marketing expenses since such promotions strategies tend to reduce expenses as compared to their advertising counterparts.
Recommendations (Macro view)
Extensive and creative advertising should be aired. This is aimed at increasing the margin acquired from the marketing hence improve the return on investment. The putting up of a creativity department will ensure there are creative adverts being aired which is what the company wants in order to attract more clients to the stores of the company. While advertising, several factors should be considered:
- The products should be portrayed as superior to the competitors
- The clients of the company should be portrayed as of superior character
Conclusion
It is only through creativity and employment of the above ways that the marketing department can gain considerable return on the money spent in the marketing of its products. Reduction of the marketing expenses while at the same time ensuring a high gain from it in order to increase the revenue earned as a result of the marketing. This will award the company handsomely insofar as ROMI is concerned (Barro, 2008).
References
Arnold, RA. 2010. Macroeconomics. Cengage Learning: Chicago.
Barro, RJ. 2008. Macroeconomics: A Modern Approach: Cengage Learning. Chicago.