com, has numerous options with respect to assessing the efficacy of its marketing programs and determining its return on investment (ROI) for such expenditures. This section shall analyze the types of metrics available for measuring marketing program efficacy and/or ROI, together with those methodologies appropriate for evaluating impact of the company's integrated marketing communications (IMC) strategies. An alternative way of looking at ROI will also be discussed, looking at returns on engagement, objectives, and opportunity. .
In terms of hard metrics, or measurement on return, ROI is the standard bearer, measuring profit earned from each of Priceline.com's investments in marketing. Not unlike the return on your bank account or investment portfolio, ROI looks at the profit in terms of a percentage, as derived from (return-investment)/investment. From a marketing standing however, and unlike investment ROI, Priceline.com will need to evaluate what constitutes its "return" or profit, and what is its true investment. Priceline.com can look at metrics such as the total revenue generated for a particular campaign; the gross profit from sales related to a campaign, or even the net profit associated with the same.
With respect to the investment side, Priceline.com can input the costs of media, creative, printing, technical, management time allocated to the campaign, and costs of sales. In doing so, the company can create a desired ROI threshold and make projections accordingly. Doing so, will allow Priceline.com to make projections concerning a particular marketing campaign and if such projections do not meet the requisite thresholds, the company can elect to delay or cancel such marketing initiatives.
IMC strategies look at interrelated components including 1) the use of multiple communication media; and 2) the consistency of messages achieved across these media. (Peltier, et al.