Marketing Return on Investment
Marketing Return on Investment (MROI) can be inversely related to profits in healthy, high performance firms. In light of this, the practitioners contend that MROI is a poor metric for evaluating profitable performance, because lower MROI is not always a sign of poor performance and higher MROI is not always a sign of higher performance. However, MROI can be converted into an elasticity of efficiency and used as a diagnostic tool to help marketing managers choose more profitable levels of promotion. MROI in the role of a diagnostic tool has stronger theoretical foundations than in its role as an evaluation metric.